General Motors CoGM -0.55%78 Return-on-Tangible-Equity is 18.26% as of Mar. 2026, which is 8% above its 10-year median of 16.88. GuruFocus rates GM with a GF Score™ of 78/100 and a GF Value™ of $63.91 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 1,285 Vehicles & Parts companies, General Motors Co ranks worse than 63.5% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. General Motors Co's annualized net income for the quarter that ended in Mar. 2026 was $10,508 Mil. General Motors Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $57,545 Mil. Therefore, General Motors Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.26%.
The historical rank and industry rank for General Motors Co's Return-on-Tangible-Equity or its related term are showing as below:
GM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -11.58 Med: 16.88 Max: 26.36
Current: 4.25
During the past 13 years, General Motors Co's highest Return-on-Tangible-Equity was 26.36%. The lowest was -11.58%. And the median was 16.88%.
GM's Return-on-Tangible-Equity is ranked worse than 63.5% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs GM: 4.25
General Motors Co (NYSE:GM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
General Motors Co Return-on-Tangible-Equity Related Terms
General Motors Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for General Motors Co's Return-on-Tangible-Equity 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.
GM vs F, RIVN, NIO: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, General Motors Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, General Motors Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where General Motors Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.26% mean?
General Motors Co (GM) has a Return-on-Tangible-Equity of 18.26% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on General Motors Co and its competitors. This is near median its historical median of 16.88. According to the industry distribution chart, General Motors Co ranks #816 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 63.5%.
Is General Motors Co's Return-on-Tangible-Equity too high?
General Motors Co's current Return-on-Tangible-Equity of 18.26% is near median its 10-year median of 16.88. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. General Motors Co's value of 18.26% is 143.8% above this industry median. Based on the distribution chart, General Motors Co ranks #816 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, General Motors Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does General Motors Co's Return-on-Tangible-Equity compare to F and RIVN?
According to the Vehicles & Parts industry distribution chart, General Motors Co ranks #816 out of 1285 companies for Return-on-Tangible-Equity. This places General Motors Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. General Motors Co's value of 18.26% is 143.8% above this benchmark. While the company's 10-year median is 16.88 vs. the industry median of 7.49, General Motors Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Motors Co's current Return-on-Tangible-Equity of 18.26% is 143.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on General Motors Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Motors Co's current Return-on-Tangible-Equity is 18.26%, which is near median its own 10-year median of 16.88. 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 $63.91, compared to a current price of $77.67 — trading 21.5% above its estimated fair value. The current Return-on-Tangible-Equity is 18.26%, which is near median its 10-year median of 16.88 and 143.8% above the Vehicles & Parts industry median of 7.49. General Motors Co's overall GF Score™ is 78/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For General Motors Co (GM), the current Return-on-Tangible-Equity is 18.26% as of Mar. 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 $77.67 is trading 21.5% above its estimated GF Value™ of $63.91.
GuruFocus considers General Motors Co to be Modestly Overvalued.
Key valuation signals for GM:
Return-on-Tangible-Equity: 18.26% (near median its 10-year median of 16.88)
GF Value™: $63.91 vs. price of $77.67 (21.5% above fair value)
Industry Position: 143.8% above the Vehicles & Parts median (#816 of 1285)
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.
78GF Score
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