General Motors Co. (NYSE:GM)

The price-to-book value (P/BV) ratio for the period examined exhibits considerable fluctuation. Initially, the ratio decreased from 1.42 in 2011 to a low of 1.05 in 2013, before experiencing a period of increase. Subsequently, the ratio declined again, reaching a trough in 2016, and then demonstrated renewed volatility through 2024. A significant increase is observed in the most recent reporting period, 2025, followed by a further increase in 2026.

Initial Decline (2011-2013)

The P/BV ratio experienced a moderate decline between 2011 and 2013, moving from 1.42 to 1.05. This suggests that the market valuation relative to the company’s book value decreased during this period. The share price decreased from US$32.95 to US$27.76, while book value per share (BVPS) increased from US$23.18 to US$26.52, contributing to this decline.

Fluctuation and Subsequent Dip (2013-2016)

Following 2013, the P/BV ratio increased to 1.31 in 2014, then peaked at 1.63 in 2015. However, it then decreased sharply to 1.12 in 2016. This period demonstrates increased market sensitivity, potentially influenced by changing investor sentiment or company performance. The share price experienced a notable decrease from US$35.83 in 2015 to US$28.92 in 2016, while BVPS also decreased from US$22.02 to US$25.81.

Volatility and Recent Increase (2016-2026)

From 2016 onwards, the P/BV ratio exhibited continued volatility, oscillating between 1.12 and 1.76. A significant decrease is observed in 2023 and 2024, with the ratio falling to 0.69. However, the ratio increased substantially to 0.79 in 2025 and further to 1.28 in 2026. This recent increase coincides with a substantial increase in share price, from US$38.15 to US$50.04 and then to US$86.38, while BVPS increased steadily from US$55.69 to US$63.39 and then to US$67.61. This suggests a renewed positive market perception of the company’s value.

Overall, the P/BV ratio demonstrates a lack of consistent trend, indicating that the market’s valuation of the company’s assets relative to its book value has been subject to considerable change over the examined period. The recent increase in the ratio suggests a potential shift in investor confidence or a reassessment of the company’s future prospects.