Key Stats for GM Stock
- Past-Week Performance: +2.3%
- Current Share Price: $83
- 52-Week Range: $42 to $85
- Valuation Model Target Price: $88
- Implied Return: +6.5% over the next 2.0 years
Value GM stock in under a minute using TIKR’s new Valuation Model (It’s free) >>>
What Happened?
General Motors (GM) stock rose about 2.3% over the past week, trading near its 52-week highs before pulling back slightly late in the week.
The broader auto sector also saw selective strength as investors rotated into manufacturers that have shown tighter cost control and improved profitability compared with prior cycles. GM has been viewed as one of the clearer examples of that shift, supported by lower incentive activity and a more balanced production strategy.
Earlier in the week, Goldman Sachs reiterated its Buy rating on GM, citing confidence in the company’s earnings durability and capital return profile as pricing discipline holds in North America. Analysts highlighted GM’s ability to sustain margins even as industry volumes normalize, which helped support buying interest near recent highs.
As shares moved closer to the upper end of their recent range, valuation concerns resurfaced. With much of the operational improvement already reflected in the stock, some investors appeared to lock in gains, leading to the late-week pullback even though GM still finished the week higher.
See analysts’ growth forecasts and price targets for General Motors (It’s free) >>>
Why the Market Is Pricing GM More Carefully
TIKR’s Guided Valuation Model estimates a fair value of $88 per share, implying 7% upside through the end of 2027. The model assumes:
- Annual revenue growth: 0.5% CAGR
- Operating margins: 7.1%
- Exit P/E multiple: 5.3x
General Motors’ performance in the next year will hinge on how successfully it scales EV production and improves profitability across its growing electric lineup.
GM’s execution on new model launches and its control over battery and supply chain costs will largely determine margin performance.
Continued strength in North American retail demand and fleet sales, coupled with stable used-car pricing, will support overall revenue and free cash flow.
GM’s progress on software-defined vehicle capabilities, including over-the-air updates and monetization of services, could create a more recurring earnings stream.
Finally, any improvement in dealer inventories and supply chain lead times will help convert demand into deliveries, smoothing out the company’s near-term outlook.
Estimate a company’s fair value instantly (Free with TIKR) >>>
Value Any Stock in Under 60 Seconds (It’s Free)
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
