On May 20, 2026, General Motors Co GM shares rose 4.8% to a current price of $76.14, amidst a 52-week trading range of $46.82 to $87.62. The stock's recent performance has shown a slight gain of 0.4% over the past week, though it has declined by 5.5% in the last month and is down 6.2% year-to-date. However, over the last year, GM shares have appreciated by 53.2% and have seen a 33.9% increase over the past three years.
- GF Valueâ„¢ verdict: Current price is $76.14 vs GF Valueâ„¢ of $63.59, indicating the stock is 19.7% overvalued.
- GF Scoreâ„¢ of 81/100 suggests a strong overall performance relative to other stocks.
- Notable signal: GM's momentum rank is 9/10, indicating strong recent performance trends.
Is GM Overvalued or Undervalued?
According to the GF Valueâ„¢, General Motors Co GM is currently overvalued with a price of $76.14 compared to its calculated fair value of $63.59. This represents a 19.7% premium that investors are currently paying over the intrinsic value. The GF Valuation label categorizes GM as "modestly overvalued," suggesting that while the stock has enjoyed significant growth, there may be a risk of a price correction if market conditions shift or if the company does not meet growth expectations.
The margin of safety for potential investors is limited, given the current overvaluation. The risk associated with overvaluation includes the potential for a decline in stock price if future earnings do not justify the current market price. Investors may want to be cautious as the stock's price could be susceptible to downward pressure in the event of any negative news or shifts in market sentiment.
GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does GM's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 28.6x | 6.4x |
| Forward P/E | 5.9x | N/A |
GM's current P/E (TTM) of 28.6x is significantly above its 5-year median P/E of 6.4x, indicating that the stock is trading at a much higher valuation than it has historically. This analysis aligns with the GF Value™ verdict of overvaluation, suggesting that the stock’s current price may not be sustainable if future earnings do not meet heightened expectations.
What Does GM's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 81/100 |
| Financial Strength | 4/10 |
| Profitability | 7/10 |
| Growth | 7/10 |
| Valuation | 6/10 |
| Momentum | 9/10 |
The GF Scoreâ„¢ of 81/100 indicates a strong overall performance, with particularly high momentum rank of 9/10, suggesting that GM has been experiencing positive price movements recently. However, the financial strength rank of 4/10 indicates that the company may face challenges in terms of its financial stability. Profitability and growth ranks of 7/10 are positive signals, highlighting that GM is generating profits and has potential for growth, but the overall financial strength could be a concern for long-term investors.
What Are Insiders Doing with GM Stock?
In the last three months, there have been no insider transactions reported for General Motors Co GM. This lack of activity may imply that insiders are not currently buying or selling shares, which can be indicative of their confidence in the current valuation or the company's future performance.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, General Motors Co GM is currently considered overvalued. The stock's price is trading above its intrinsic value, presenting potential risks for investors. Caution is advised as the stock may not sustain its current price levels without corresponding growth in earnings.
For the complete analysis, visit the General Motors Co GM stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is GM's GF Scoreâ„¢?
GM's GF Scoreâ„¢ is 81/100, indicating a strong overall performance relative to other stocks based on financial strength, profitability, growth, valuation, and momentum.
Is GM overvalued or undervalued?
GM is currently overvalued, with a GF Valueâ„¢ of $63.59 compared to its current price of $76.14, which reflects a 19.7% premium.
What is GM's P/E ratio?
GM's P/E (TTM) ratio is 28.6x, which is significantly above its historical 5-year median P/E of 6.4x, indicating that the stock is trading at a much higher valuation than it has historically.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
