GM
General Motors Company
$78.79
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 18.6% below fair value
You pay
$78.79
Bear
$77.47
Fair
$96.84
Bull
$116.21
Bear
$77.47
-1.7%
$6.37 × 12x P/E
Fair
$96.84
+22.9%
$6.37 × 15x P/E
Bull
$116.21
+47.5%
$6.37 × 19x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.4x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $93.92 from 51 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $96.84 per share.
Warnings
The company's reported profits differ from official accounting profits by 95%. Check what costs are being left out of the adjusted number.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples