Is General Motors Co. overvalued or undervalued?

As of 7 November 2025, the valuation grade for General Motors Co. has moved from expensive to fair, indicating a more favorable assessment of its stock. The company appears to be undervalued based on its current metrics, with a P/E ratio of 8, a price-to-book value of 0.71, and an EV to EBITDA of 4.72. In comparison, peers such as Ford Motor Company have a P/E ratio of 10.85, while Tesla, Inc. stands at an extremely high P/E of 179.44, further supporting the notion that General Motors is relatively undervalued.
Additionally, General Motors has demonstrated strong recent performance, with a year-to-date return of 33.38%, significantly outpacing the S&P 500's return of 14.40% over the same period. This performance, combined with its attractive valuation ratios, reinforces the conclusion that General Motors Co. is positioned as an undervalued investment opportunity in the automobile sector.