General Motors (GM)
Consumer · NYSE · US
Fundamentals
Valuation and ratings
General Motors trades at $77.72, close to the $69.47 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 19 out of 100, which is little in the way of a 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 28.4 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 Motors
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. It operates through GM North America, GM International, and GM Financial segments. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, it sells trucks, crossovers, cars, and automobile parts through retail dealers, distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, the company offers various range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, it provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is based in Detroit, Michigan.
Smart money ownership
20 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Bill Nygren, HARRIS ASSOCIATES L P$2.01B · 1.4% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$1.03B · 0.5% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$917.69M · 0.6% of book
- Andreas Halvorsen, VIKING GLOBAL INVESTORS LP$683.68M · 1.9% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$442.12M · 0.4% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is General Motors (GM) undervalued?
Against our discounted cash flow estimate of $69.47, GM at $77.72 is 11% above 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.
Which funds own GM?
20 of the institutions we track reported a position in GM in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GM's P/E ratio?
GM trades at 28.4 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.
The full research page for GM, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
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.