GM
General Motors Company
$76.72
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.3% below fair value
You pay
$76.72
Bear
$77.94
Fair
$97.43
Bull
$116.92
Bear
$77.94
+1.6%
$6.37 × 12x P/E
Fair
$97.43
+27.0%
$6.37 × 15x P/E
Bull
$116.92
+52.4%
$6.37 × 19x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.0x
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 $95.60 from 51 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $97.43 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