Is Ford Motor Co. overvalued or undervalued?

As of 1 May 2023, the valuation grade for Ford Motor Co. has moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, particularly when considering its P/E ratio of 9, which is substantially lower than the peer average of 15.63, and a PEG ratio of 0.44, suggesting strong growth potential relative to its price. Additionally, Ford's price to book value stands at 0.91, indicating that the stock is trading below its book value, further reinforcing its undervaluation.
In comparison to its peers, Rivian Automotive, Inc. is rated as risky with a P/E of -4.88, highlighting Ford's relative strength in valuation metrics. Despite recent performance, where Ford's one-year return of 6.92% lags behind the S&P 500's 17.14%, the year-to-date return of 18.59% outpaces the S&P's 12.22%, suggesting a positive trend that could attract investors.