Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

General Motors Company (GM)

Company Dividend Discount ModelIndustry: Auto - ManufacturersSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$19.13 - $27.02$23.03
Multi-Stage$29.91 - $32.86$31.35
Blended Fair Value$27.19
Current Price$60.97
Upside-55.40%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-22.59%-14.60%0.640.580.390.180.662.302.202.192.322.20
YoY Growth--9.38%50.38%113.44%-72.20%-71.53%4.82%0.40%-5.70%5.62%-29.16%
Dividend Yield--1.36%1.29%1.06%0.42%1.14%11.08%5.82%6.02%6.56%6.99%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,045.00
(-) Cash Dividends Paid (M)646.00
(=) Cash Retained (M)2,399.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)609.00380.63228.38
Cash Retained (M)2,399.002,399.002,399.00
(-) Cash Required (M)-609.00-380.63-228.38
(=) Excess Retained (M)1,790.002,018.382,170.63
(/) Shares Outstanding (M)1,021.001,021.001,021.00
(=) Excess Retained per Share1.751.982.13
LTM Dividend per Share0.630.630.63
(+) Excess Retained per Share1.751.982.13
(=) Adjusted Dividend2.392.612.76
WACC / Discount Rate9.69%9.69%9.69%
Growth Rate-2.47%-1.47%-0.47%
Fair Value$19.13$23.03$27.02
Upside / Downside-68.62%-62.22%-55.69%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,045.003,000.092,955.842,912.242,869.292,826.972,911.78
Payout Ratio21.22%34.97%48.73%62.49%76.24%90.00%92.50%
Projected Dividends (M)646.001,049.191,440.351,819.752,187.632,544.272,693.40

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.69%9.69%9.69%
Growth Rate-2.47%-1.47%-0.47%
Year 1 PV (M)946.82956.53966.23
Year 2 PV (M)1,172.981,197.161,221.58
Year 3 PV (M)1,337.341,378.901,421.32
Year 4 PV (M)1,450.831,511.261,573.55
Year 5 PV (M)1,522.711,602.391,685.38
PV of Terminal Value (M)24,102.3525,363.6526,677.22
Equity Value (M)30,533.0332,009.8933,545.28
Shares Outstanding (M)1,021.001,021.001,021.00
Fair Value$29.91$31.35$32.86
Upside / Downside-50.95%-48.58%-46.11%

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