Is General Motors Co. overvalued or undervalued?

As of 24 October 2025, the valuation grade for General Motors Co. has moved from fair to expensive. The company appears overvalued based on several key metrics, including a P/E ratio of 8, a Price to Book Value of 0.71, and an EV to EBITDA of 4.72. In comparison to peers, General Motors has a lower P/E ratio than Tesla, which stands at 179.44, indicating a significant valuation disparity within the industry.
Despite the current overvaluation, General Motors has shown strong recent performance, with a year-to-date return of 30.77% compared to the S&P 500's 15.47%. This outperformance over multiple periods, including a 1-year return of 32.13% versus the S&P 500's 16.90%, suggests that market sentiment may still favor the stock despite its expensive valuation.