General Motors CoGM.WS.B 78 WACC % is 0.5% as of Jun. 25, 2026, which is 88% below its 10-year median of 4.30. GuruFocus rates GM.WS.B with a GF Score™ of 78/100 and a GF Value™ of $12.32. The stock has 11 warning signs investors should review. Among 1,346 Vehicles & Parts companies, General Motors Co ranks better than 81.95% on this metric.
As of today (2026-06-25), General Motors Co's weighted average cost of capital is 0.5%%. General Motors Co's ROIC % is 1.07% (calculated using TTM income statement data).
General Motors Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
General Motors Co (NYSE:GM.WS.B) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, General Motors Co's weighted average cost of capital is 0.5%%. General Motors Co's ROIC % is 1.07% (calculated using TTM income statement data).
General Motors Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
General Motors Co WACC % Historical Data
* Premium members only.
The historical data trend for General Motors Co's WACC % 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.
For the Auto Manufacturers subindustry, General Motors Co's WACC %, along with its competitors' market caps and WACC % 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 WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, General Motors Co's WACC % distribution charts can be found below:
* The bar in red indicates where General Motors Co's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, General Motors Co's market capitalization (E) is $4.659 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, General Motors Co's latest one-year quarterly average Book Value of Debt (D) is $131996 Mil.
a) weight of equity = E / (E + D) = 4.659 / (4.659 + 131996) = 0
b) weight of debt = D / (E + D) = 131996 / (4.659 + 131996) = 1
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.41%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. General Motors Co's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.41% + 1 * 6% = 10.41%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, General Motors Co's interest expense (positive number) was $732 Mil. Its total Book Value of Debt (D) is $131996 Mil.
Cost of Debt = 732 / 131996 = 0.5546%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 262 / 2892 = 9.06%.
General Motors Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0
*
10.41%
+
1
*
0.5546%
*
(1 - 9.06%)
=
0.5%
* 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 (GM.WS.B) has a WACC % of 0.5% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on General Motors Co and its competitors. This is 88% below median its historical median of 4.30. Over the past decade, General Motors Co's WACC % has ranged from 3.17 to 5.58. According to the industry distribution chart, General Motors Co ranks #243 out of 1346 companies in the Vehicles & Parts industry, placing it in the top 18.1%.
Is General Motors Co's WACC % too high?
General Motors Co's current WACC % of 0.5% is 88% below median its 10-year median of 4.30. Over the past 10 years, this metric has ranged from a low of 3.17 to a high of 5.58. The Vehicles & Parts industry median WACC % is 8.59. General Motors Co's value of 0.5% is 94.2% below this industry median. Based on the distribution chart, General Motors Co ranks #243 out of 1346 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, General Motors Co has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does General Motors Co's WACC % compare to F and RIVN?
According to the Vehicles & Parts industry distribution chart, General Motors Co ranks #243 out of 1346 companies for WACC %. This places General Motors Co in the top 18% of its industry — outperforming the majority of peers. The industry median WACC % is 8.59. General Motors Co's value of 0.5% is 94.2% below this benchmark. Historically, General Motors Co's own WACC % has ranged from 3.17 to 5.58 over the past decade. While the company's 10-year median is 4.30 vs. the industry median of 8.59, General Motors Co has consistently been below 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 WACC % for a Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.59, based on 1,346 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Motors Co's current WACC % of 0.5% is 94.2% below 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on General Motors Co and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Motors Co's current WACC % is 0.5%, which is 88% below median its own 10-year median of 4.30. 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?
General Motors Co (GM.WS.B) has a current WACC % of 0.5%. The stock's GF Value™ is $12.32, compared to a current price of $23.05 — trading 87.1% above its estimated fair value. The current WACC % is 0.5%, which is 88% below median its 10-year median of 4.30 and 94.2% below the Vehicles & Parts industry median of 8.59. General Motors Co's overall GF Score™ is 78/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For General Motors Co (GM.WS.B), the current WACC % is 0.5% 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 General Motors Co (GM.WS.B) Overvalued in 2026?
Based on GuruFocus' analysis, General Motors Co stock appears to be overvalued.
The current stock price of $23.05 is trading 87.1% above its estimated GF Value™ of $12.32.
Key valuation signals for GM.WS.B:
WACC %: 0.5% (88% below median its 10-year median of 4.30)
GF Value™: $12.32 vs. price of $23.05 (87.1% above fair value)
Industry Position: 94.2% below the Vehicles & Parts median (#243 of 1346)
No single metric tells the full story. See the GM.WS.B 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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