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General Motors CoGM +2.13%77 Degree of Operating Leverage is 58.68 as of Jun. 2026. GuruFocus rates GM with a GF Score™ of 77/100 and a GF Value™ of $67.06 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 1,303 Vehicles & Parts companies, General Motors Co ranks worse than 95.17% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
General Motors Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 58.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for General Motors Co's Degree of Operating Leverage or its related term are showing as below:
GM's Degree of Operating Leverage is ranked worse than 95.17% of 1303
companies
in the Vehicles & Parts industry
Industry Median: 1.01
vs GM: 58.68
General Motors Co (NYSE:GM) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
General Motors Co Degree of Operating Leverage Related Terms
General Motors Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for General Motors Co's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
General Motors Co Degree of Operating Leverage Chart
GM vs F, RIVN, LI: Degree of Operating Leverage Comparison
For the Auto Manufacturers subindustry, General Motors Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General Motors Co Degree of Operating Leverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, General Motors Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where General Motors Co's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 58.68 mean?
General Motors Co (GM) has a Degree of Operating Leverage of 58.68 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for General Motors Co and its competitors. According to the industry distribution chart, General Motors Co ranks #1240 out of 1303 companies in the Vehicles & Parts industry, placing it in the top 95.2%.
Is General Motors Co's Degree of Operating Leverage too high?
General Motors Co's current Degree of Operating Leverage is 58.68. The Vehicles & Parts industry median Degree of Operating Leverage is 1.01. General Motors Co's value of 58.68 is 5709.9% above this industry median. Based on the distribution chart, General Motors Co ranks #1240 out of 1303 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, General Motors Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does General Motors Co's Degree of Operating Leverage compare to F and RIVN?
According to the Vehicles & Parts industry distribution chart, General Motors Co ranks #1240 out of 1303 companies for Degree of Operating Leverage. This places General Motors Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.01. General Motors Co's value of 58.68 is 5709.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Vehicles & Parts company?
The median Degree of Operating Leverage among Vehicles & Parts companies is 1.01, based on 1,303 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Motors Co's current Degree of Operating Leverage of 58.68 is 5709.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for General Motors Co and its competitors. For the Vehicles & Parts industry, the median Degree of Operating Leverage is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Motors Co's current Degree of Operating Leverage is 58.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Motors Co stock overvalued right now?
Based on GuruFocus' analysis, General Motors Co (GM) is currently considered Modestly Overvalued. The stock's GF Value™ is $67.06, compared to a current price of $83.95 — trading 25.2% above its estimated fair value. The current Degree of Operating Leverage is 58.68 and 5709.9% above the Vehicles & Parts industry median of 1.01. General Motors Co's overall GF Score™ is 77/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For General Motors Co (GM), the current Degree of Operating Leverage is 58.68 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General Motors Co (GM) Overvalued in 2026?
Based on GuruFocus' analysis, General Motors Co stock appears to be overvalued.
The current stock price of $83.95 is trading 25.2% above its estimated GF Value™ of $67.06.
GuruFocus considers General Motors Co to be Modestly Overvalued.
Key valuation signals for GM:
Degree of Operating Leverage: 58.68
GF Value™: $67.06 vs. price of $83.95 (25.2% above fair value)
Industry Position: 5709.9% above the Vehicles & Parts median (#1240 of 1303)
No single metric tells the full story. See the GM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under three segments: GM North America, GM International, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its US market share leadership in 2022, after losing it to Toyota due to the chip shortage in 2021. 2025 US share was 17.4%, up 60 basis points from 2024. The Cruise autonomous vehicle arm, which GM now owns outright, previously operated driverless geofenced AV robotaxi services in San Francisco and other cities, but after a 2023 accident, GM decided that it will focus on personal AVs. GM Financial became the company's captive finance arm in 2010 via the purchase of AmeriCredit.
77GF Score
Get the complete analysis for GM
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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