Is General Motors Co. overvalued or undervalued?

Oct 27 2025 11:12 AM IST
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As of October 24, 2025, General Motors Co. is considered overvalued despite a strong 1-year return of 32.13%, with key metrics indicating a shift from fair to expensive valuation.
As of 24 October 2025, the valuation grade for General Motors Co. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on key metrics, including a P/E ratio of 8, which is lower than the peer average of approximately 10.85, and an EV to EBITDA ratio of 4.72, compared to Tesla's significantly higher 94.58. Additionally, the Price to Book Value stands at 0.71, suggesting that the stock is trading below its book value, yet this does not offset the overall valuation concerns.

In terms of performance, General Motors has outperformed the S&P 500 across various time frames, with a 1-year return of 32.13% compared to the S&P 500's 16.90%. This strong performance may reflect investor sentiment, but the current valuation metrics suggest that the stock is not justified at its current price level. Overall, General Motors Co. is considered overvalued in the current market environment.
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