General American Investors Company, Inc. (GAM)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
General American Investors Company, Inc. trades at USD64.76, which is 120% below the USD142.47 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 73 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 4.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About General American Investors Company, Inc.
General American Investors Company, Inc. is a publicly owned investment manager. The firm invests in the public equity markets of United States. It invests in growth stocks of companies. It makes investments in Information Technology, Financials, Consumer Staples, Consumer Discretionary, Retailing, Communication Services, Industrials, Health Care, Energy and Materials. The firm employs fundamental analysis with a bottom-up stock picking approach to make its investments. It conducts in-house research to make its investments. General American Investors Company, Inc. was founded in 1927 and is based in New York, New York.
GAM passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is General American Investors Company, Inc. (GAM) undervalued?
Against our discounted cash flow estimate of USD142.47, GAM at USD64.76 is 120% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is GAM's P/E ratio?
GAM trades at 4.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.