General Motors designs, builds, and sells cars, crossovers, trucks, and automobile parts worldwide. It operates through GM North America, GM Europe, GM International Operations, GM South America, and GM Financial segments. The company was founded in 1897 and is based in Detroit, Michigan.
GM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that General Motors Co ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 391.67%. The most interesting components of our discounted cash flow analysis for General Motors Co ended up being:
The company has produced more trailing twelve month cash flow than 97.65% of its sector Consumer Cyclical.
39% of the company's capital comes from equity, which is greater than only 12.76% of stocks in our cash flow based forecasting set.
General Motors Co's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 0.69% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MSGN, AN, BBY, SAH, and FOXA can be thought of as valuation peers to GM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
General Motors Co and labor union Unifor said on Friday they have reached a tentative deal for the automaker to invest nearly C$1 billion (US$785.42 million) in its CAMI Assembly Plant in Ingersoll, Ontario, to manufacture commercial electric vans.
American auto giant GM’s Cadillac has always been a luxury car brand, which the company is now increasingly positioning as its leading marquee for the electric vehicle (EV) line-up that started off with Lyriq.
General Motors Company (NYSE: GM) is set to begin churning out new commercial electric vans by the end of this year.What Happened: The Detroit-based automaker and Canadian union Unifor have tentatively agreed to produce the electric light-commercial van, the EV600, at the CAMI manufacturing plant in Ingersoll, Ontario. GM is investing $800 million into the plant.Although the agreement still needs to be approved by the union's rank and file, GM said in its announcement late on Friday that "work will begin immediately" so the plant can begin delivering the vans late this year.Part Of BrightDrop: The project is part of a new line of business GM launched this past week called BrightDrop, a play to get an edge in both e-commerce logistics and vehicle electrification. Besides the EV600 van, B...