In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Dividends are the cleanest and most straightforward measure of cash flow because these are clearly cash flows that go directly to the investor.
Paying user area
Try for free
General Motors Co. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2010
- Total Asset Turnover since 2010
- Price to Book Value (P/BV) since 2010
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to General Motors Co. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Intrinsic Stock Value (Valuation Summary)
Year | Value | DPSt or Terminal value (TVt) | Calculation | Present value at |
---|---|---|---|---|
0 | DPS01 | |||
1 | DPS1 | = × (1 + ) | ||
2 | DPS2 | = × (1 + ) | ||
3 | DPS3 | = × (1 + ) | ||
4 | DPS4 | = × (1 + ) | ||
5 | DPS5 | = × (1 + ) | ||
5 | Terminal value (TV5) | = × (1 + ) ÷ ( – ) | ||
Intrinsic value of General Motors Co. common stock (per share) | ||||
Current share price |
Based on: 10-K (reporting date: 2023-12-31).
1 DPS0 = Sum of the last year dividends per share of General Motors Co. common stock. See details »
Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.
Required Rate of Return (r)
Assumptions | ||
Rate of return on LT Treasury Composite1 | RF | |
Expected rate of return on market portfolio2 | E(RM) | |
Systematic risk of General Motors Co. common stock | βGM | |
Required rate of return on General Motors Co. common stock3 | rGM |
1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).
3 rGM = RF + βGM [E(RM) – RF]
= + [ – ]
=
Dividend Growth Rate (g)
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Retention rate = (Net income attributable to stockholders – Cash dividends paid on common stock) ÷ Net income attributable to stockholders
= ( – ) ÷
=
2 Profit margin = 100 × Net income attributable to stockholders ÷ Automotive net sales and revenue
= 100 × ÷
=
3 Asset turnover = Automotive net sales and revenue ÷ Total assets
= ÷
=
4 Financial leverage = Total assets ÷ Stockholders’ equity
= ÷
=
5 g = Retention rate × Profit margin × Asset turnover × Financial leverage
= × × ×
=
Dividend growth rate (g) implied by Gordon growth model
g = 100 × (P0 × r – D0) ÷ (P0 + D0)
= 100 × ( × – ) ÷ ( + )
=
where:
P0 = current price of share of General Motors Co. common stock
D0 = the last year dividends per share of General Motors Co. common stock
r = required rate of return on General Motors Co. common stock
Year | Value | gt |
---|---|---|
1 | g1 | |
2 | g2 | |
3 | g3 | |
4 | g4 | |
5 and thereafter | g5 |
where:
g1 is implied by PRAT model
g5 is implied by Gordon growth model
g2, g3 and g4 are calculated using linear interpoltion between g1 and g5
Calculations
g2 = g1 + (g5 – g1) × (2 – 1) ÷ (5 – 1)
= + ( – ) × (2 – 1) ÷ (5 – 1)
=
g3 = g1 + (g5 – g1) × (3 – 1) ÷ (5 – 1)
= + ( – ) × (3 – 1) ÷ (5 – 1)
=
g4 = g1 + (g5 – g1) × (4 – 1) ÷ (5 – 1)
= + ( – ) × (4 – 1) ÷ (5 – 1)
=