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$27.72 - $42.94$34.77
Multi-Stage$71.47 - $78.84$75.08
Blended Fair Value$54.93
Current Price$60.97
Upside-9.91%
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 Rate5.92%5.92%5.92%
Growth Rate-2.47%-1.47%-0.47%
Fair Value$27.72$34.77$42.94
Upside / Downside-54.54%-42.97%-29.57%

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 Rate5.92%5.92%5.92%
Growth Rate-2.47%-1.47%-0.47%
Year 1 PV (M)980.51990.561,000.61
Year 2 PV (M)1,257.931,283.861,310.06
Year 3 PV (M)1,485.231,531.391,578.49
Year 4 PV (M)1,668.601,738.101,809.74
Year 5 PV (M)1,813.581,908.482,007.32
PV of Terminal Value (M)65,764.3069,205.8272,789.93
Equity Value (M)72,970.1476,658.2180,496.15
Shares Outstanding (M)1,021.001,021.001,021.00
Fair Value$71.47$75.08$78.84
Upside / Downside17.22%23.14%29.31%

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