Is Ford Motor Co. overvalued or undervalued?
As of May 1, 2023, Ford Motor Co. is considered a very attractive investment due to its undervalued financial metrics, including a P/E ratio of 9, a Price to Book Value of 0.91, a PEG ratio of 0.44, and a high dividend yield of 735.69%, despite underperforming the S&P 500 over the past year.
As of 1 May 2023, Ford Motor Co. has moved from a risky to a very attractive valuation grade. The company appears to be undervalued based on its financial metrics, with a P/E ratio of 9, a Price to Book Value of 0.91, and an impressive PEG ratio of 0.44. In comparison to peers, Ford's P/E ratio is significantly lower than General Motors Co.'s 7.62, while Tesla, Inc. is deemed very expensive at a P/E of 144.93.Ford's valuation is further supported by its EV to EBITDA ratio of 16.56, which is more favorable than Tesla's 78.12, while its dividend yield of 735.69% stands out as exceptionally high. Although the stock has underperformed the S&P 500 over the past year, it has shown resilience with a year-to-date return of 8.59%, suggesting potential for recovery and growth. Overall, Ford Motor Co. presents a compelling investment opportunity in the current market.
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