General Motors Company (GM) Stock Analysis
Score DGrowth · Grade F · Bullish
$72.47
$192.71
+165.9%
6/10
F
Growth
Investment Thesis
Low quantitative score: Low quality, stretched valuation, or poor risk/reward.
For New Investors
Quantitative score: weak
For Current Holders
Quantitative score: low
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $192.71 (+165.9%). Significantly undervalued.
PEG-Based EPS
$217.41
FCF DCF Model
$217.41
EV/EBITDA
$217.41
Blended Fair Value
$192.71
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA, Revenue Multiple
Quality Analysis
37/120 points
Low Quality
ROE (3Y Avg)
9.9%
ROIC-WACC Spread
-3.6%
D/E Ratio
2.1x
Current Ratio
1.2x
Interest Coverage
4x
FCF Positive Years
1/3
Quality Flags
- Low ROE: 9.9% (need >15%, got 10/20 pts)
- ROIC spread: -3.6pp (got 0/25 pts)
- FCF positive only 1/3 years (7/20 pts)
- Leverage: D/E 2.1x (0/15 pts)
Market Sentiment
Wall Street Consensus
$97.50
+34.5% Upside
26 analysts
Range: $59.00 — $110.00
Rating: Buy
Our model is more cautious than Wall Street.
Trend & Technical
Price ($72.67) is 1.7% above SMA 200 ($71.46). Bullish trend confirmed.
Tech Score 61/100 — Neutral technical picture. Mixed signals across indicators.
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+57.3%
Bull Upside
+157.1%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
See exact entry zones, stop-loss levels, and a personalized action plan.
AI Executive Summary
Get a detailed AI-written breakdown of the investment thesis, risks, and catalysts.
Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of GM?
Based on our multi-method conviction analysis, the estimated fair value of General Motors Company (GM) is $192.71. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA, Revenue Multiple and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is GM a buy, sell, or hold?
GM currently has a AVOID rating with a conviction score of 6/10. Low quantitative score: Low quality, stretched valuation, or poor risk/reward. Quantitative score: weak.
Is GM a high-quality stock?
General Motors Company has a quality grade of F (37/120 points), rated as Low Quality. Key metrics include ROE of 9.9%, ROIC-WACC spread of -3.6%, and D/E ratio of 2.1x.
What type of stock is GM?
GM is classified as a "growth" in our framework. High revenue growth: 22.9%, High P/E: 26.5x, Low dividend (reinvesting): 0.9%, High FCF Yield: 16.9%, High debt: D/E 2.1x
What do Wall Street analysts say about GM?
26 Wall Street analysts have a consensus price target of $97.50 for GM, representing +34.5% upside. Targets range from $59.00 to $110.00. The consensus recommendation is "Buy". Our model is more cautious than Wall Street.
What are the risks of investing in GM?
The risk/reward asymmetry ratio for GM is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +57.3%, with bull case upside of +157.1% and bear case downside of -10.0%.
What is the current trend for GM?
GM is in a bullish trend. Price ($72.67) is 1.7% above SMA 200 ($71.46). Bullish trend confirmed. The technical score is 61/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.