Is General Motors Co. overvalued or undervalued?

As of 10 September 2025, General Motors Co. has moved from a very expensive valuation to an expensive one. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 8, which is below the peer average of approximately 10.85, while the Price to Book Value is notably low at 0.71, suggesting a discount relative to its book value. Additionally, the EV to EBITDA ratio of 4.72 further indicates that the company may not be justifying its current market price compared to its earnings potential.
In comparison to peers, Tesla, Inc. is categorized as very expensive with a P/E ratio of 179.44, highlighting a significant disparity in valuation within the industry. General Motors' return over the past year has outperformed the S&P 500, with a 21.78% return compared to the index's 17.14%, but the longer-term returns show a lag, particularly over 3 and 5 years. This suggests that while the company has had a strong recent performance, its valuation metrics indicate it may not sustain this level of growth relative to its peers.