Ally Financial (LTS:0HD0) Margin of Safety % (DCF Earnings Based): 9.22% (As of Jun. 25, 2026)


LTS:0HD0 Ally Financial Inc LTS:0HD0
73 GF Score
Price $45.78
GF Value $38.92
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Ally Financial Margin of Safety % (DCF Earnings Based)?

Ally Financial LTS:0HD0 +0.90% 73 Margin of Safety % (DCF Earnings Based) is 9.22% as of Jun. 25, 2026. GuruFocus rates LTS:0HD0 with a GF Score™ of 73/100 and a GF Value™ of $38.92 (Modestly Overvalued). The stock has 8 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Ally Financial's Predictability Rank is 1.5-Stars. Ally Financial's intrinsic value calculated from the Discounted Earnings model is $50.43 and current share price is $45.78. Consequently,

Ally Financial's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is 9.22%.

LTS:0HD0 vs FCFS, KLAR, OMF: Margin of Safety % (DCF Earnings Based) Comparison

For the Credit Services subindustry, Ally Financial's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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.

Ally Financial Margin of Safety % (DCF Earnings Based) vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Ally Financial's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Ally Financial's Margin of Safety % (DCF Earnings Based) falls into.


LTS:0HD0
73GF Score
Ally Financial Inc LTS:0HD0
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Ally Financial Margin of Safety % (DCF Earnings Based) Calculation

Ally Financial's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(50.43-45.78)/50.43
=9.22 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of 9.22% mean?
Ally Financial (LTS:0HD0) has a Margin of Safety % (DCF Earnings Based) of 9.22% as of Jun. 25, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Ally Financial.
Is Ally Financial's Margin of Safety % (DCF Earnings Based) too high?
Ally Financial's current Margin of Safety % (DCF Earnings Based) is 9.22%. Overall, Ally Financial has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ally Financial's Margin of Safety % (DCF Earnings Based) compare to FCFS and KLAR?
Ally Financial's Margin of Safety % (DCF Earnings Based) of 9.22% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Credit Services company?
A good Margin of Safety % (DCF Earnings Based) depends on the Credit Services industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Ally Financial. Ally Financial's current Margin of Safety % (DCF Earnings Based) is 9.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ally Financial stock overvalued right now?
Based on GuruFocus' analysis, Ally Financial (LTS:0HD0) is currently considered Modestly Overvalued. The stock's GF Value™ is $38.92, compared to a current price of $45.78 — trading 17.6% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is 9.22%. Ally Financial's overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Ally Financial (LTS:0HD0), the current Margin of Safety % (DCF Earnings Based) is 9.22% as of Jun. 25, 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 Ally Financial (LTS:0HD0) Overvalued in 2026?

Based on GuruFocus' analysis, Ally Financial stock appears to be overvalued. The current stock price of $45.78 is trading 17.6% above its estimated GF Value™ of $38.92. GuruFocus considers Ally Financial to be Modestly Overvalued.

Key valuation signals for LTS:0HD0:

  • Margin of Safety % (DCF Earnings Based): 9.22%
  • GF Value™: $38.92 vs. price of $45.78 (17.6% above fair value)
  • GF Score™: 73/100 with 8 warning signs

No single metric tells the full story. See the LTS:0HD0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ally Financial Business Description

Address 500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model that includes brokerage services.
73GF Score

Get the complete analysis for LTS:0HD0

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$45.78
Price
$38.92
GF Value