Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
General Motors Co., current price multiples
| General Motors Co. | Ford Motor Co. | Tesla Inc. | Automobiles & Components | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $84.24 | |||||||
| No. shares of common stock outstanding | 903,967,853 | |||||||
| Growth rate (g) | 12.04% | |||||||
| Earnings per share (EPS) | $3.52 | |||||||
| Next year expected EPS | $3.94 | |||||||
| Operating profit per share | $3.22 | |||||||
| Sales per share | $185.82 | |||||||
| Book value per share (BVPS) | $67.61 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | 23.95 | 9.35 | 406.61 | 83.03 | 39.99 | |||
| Price to next year expected earnings | 21.37 | 9.23 | 350.62 | 72.48 | 32.76 | |||
| Price-earnings-growth (PEG) | 1.99 | 6.91 | 25.47 | 5.70 | 1.81 | |||
| Price to operating profit (P/OP) | 26.18 | 10.54 | 354.23 | 66.74 | 31.98 | |||
| Price to sales (P/S) | 0.45 | 0.32 | 16.27 | 3.79 | 3.51 | |||
| Price to book value (P/BV) | 1.25 | 1.23 | 18.78 | 9.26 | 11.27 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
General Motors Co., historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios demonstrate significant fluctuations over the five-year period. Generally, ratios decreased from 2021 to 2023, followed by increases in 2024 and, notably, 2025. This suggests a shifting perception of the company’s value by the market.
- Price to Earnings (P/E)
- The Price to Earnings ratio experienced a substantial decline from 7.90 in 2021 to a low of 4.39 in 2023. This indicates a decreasing market valuation relative to earnings during this period. A recovery is then observed in 2024, reaching 6.93, and a dramatic increase to 24.55 in 2025, potentially signaling increased investor confidence or expectations of future earnings growth.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio mirrors the trend of the P/E ratio, decreasing from 8.34 in 2021 to 4.74 in 2023. This suggests a similar pattern in market valuation relative to operating profitability. The ratio also shows improvement in 2024 (3.89) and a significant increase in 2025 (26.84), aligning with the P/E ratio’s movement.
- Price to Sales (P/S)
- The Price to Sales ratio consistently decreased from 0.68 in 2021 to 0.28 in 2023, indicating a declining valuation relative to revenue. A slight increase to 0.29 is seen in 2024, followed by a more substantial rise to 0.46 in 2025. This suggests a potential stabilization or renewed interest in the company’s revenue generation capabilities.
- Price to Book Value (P/BV)
- The Price to Book Value ratio exhibited a decline from 1.30 in 2021 to 0.69 in 2023, suggesting a decreasing market valuation relative to the company’s net asset value. The ratio then increased to 0.79 in 2024 and further to 1.28 in 2025, indicating a potential recovery in the market’s assessment of the company’s asset value.
The pronounced increases in all ratios during 2025 warrant further investigation to determine the underlying drivers. The period between 2021 and 2023 demonstrates a consistent contraction in valuation multiples, while the subsequent years show a reversal of this trend.
Price to Earnings (P/E)
General Motors Co., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 903,967,853 | 995,001,891 | 1,154,433,287 | 1,394,637,226 | 1,453,021,337 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to common stockholders (in millions) | 3,180) | 7,189) | 10,022) | 8,915) | 9,837) | |
| Earnings per share (EPS)2 | 3.52 | 7.23 | 8.68 | 6.39 | 6.77 | |
| Share price1, 3 | 86.38 | 50.04 | 38.15 | 39.32 | 53.50 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 24.55 | 6.93 | 4.39 | 6.15 | 7.90 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Ford Motor Co. | — | 6.24 | 11.70 | — | 4.01 | |
| Tesla Inc. | 412.00 | 181.57 | 40.55 | 43.65 | 169.91 | |
| P/E Ratio, Sector | ||||||
| Automobiles & Components | — | 68.16 | 23.94 | 33.64 | 32.66 | |
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | — | 39.33 | 33.63 | 46.01 | 39.27 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income attributable to common stockholders ÷ No. shares of common stock outstanding
= 3,180,000,000 ÷ 903,967,853 = 3.52
3 Closing price as at the filing date of General Motors Co. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 86.38 ÷ 3.52 = 24.55
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased from 7.90 in 2021 to a low of 4.39 in 2023, before increasing substantially to 24.55 in 2025. This movement is closely tied to the interplay between share price and earnings per share.
- P/E Ratio Trend
- A declining P/E ratio was observed from 2021 through 2023. This suggests that the market value of the company’s stock decreased relative to its earnings during this period. The most significant decline occurred between 2022 and 2023, moving from 6.15 to 4.39. However, a sharp increase in the P/E ratio occurred in 2024 and continued into 2025, indicating a growing market valuation relative to earnings.
- Share Price and EPS Relationship
- The share price decreased from US$53.50 in 2021 to US$38.15 in 2023, contributing to the initial decline in the P/E ratio. While the share price increased significantly to US$86.38 by 2025, the earnings per share (EPS) decreased from US$6.77 in 2021 to US$3.52 in 2025. The substantial increase in the P/E ratio in 2024 and 2025 is primarily driven by the larger increase in share price compared to the decrease in EPS.
- Earnings Per Share (EPS) Trend
- EPS initially remained relatively stable between 2021 and 2022, then increased to US$8.68 in 2023. However, a notable decrease in EPS was observed in 2024 and continued into 2025, falling to US$3.52. This decline in earnings, despite the rising share price, is a key factor in the P/E ratio’s overall trajectory.
The considerable volatility in the P/E ratio suggests changing investor sentiment and expectations regarding the company’s future earnings potential. The recent increase in the P/E ratio, despite declining EPS, may indicate increased investor confidence or speculative trading activity.
Price to Operating Profit (P/OP)
General Motors Co., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 903,967,853 | 995,001,891 | 1,154,433,287 | 1,394,637,226 | 1,453,021,337 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 2,909) | 12,784) | 9,298) | 10,315) | 9,324) | |
| Operating profit per share2 | 3.22 | 12.85 | 8.05 | 7.40 | 6.42 | |
| Share price1, 3 | 86.38 | 50.04 | 38.15 | 39.32 | 53.50 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 26.84 | 3.89 | 4.74 | 5.32 | 8.34 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Ford Motor Co. | — | 7.03 | 9.32 | 8.40 | 15.90 | |
| Tesla Inc. | 358.92 | 181.95 | 68.39 | 40.14 | 143.76 | |
| P/OP Ratio, Sector | ||||||
| Automobiles & Components | — | 54.79 | 29.73 | 21.68 | 53.38 | |
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | — | 31.45 | 29.18 | 27.24 | 41.03 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,909,000,000 ÷ 903,967,853 = 3.22
3 Closing price as at the filing date of General Motors Co. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 86.38 ÷ 3.22 = 26.84
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased from 2021 to 2023, followed by a sharp decline in 2024, and a substantial increase in 2025.
- Overall Trend
- The P/OP ratio demonstrated a non-linear trend. It began at 8.34 in 2021, decreased to 5.32 in 2022, and further to 4.74 in 2023. A more pronounced decrease occurred in 2024, falling to 3.89. However, the ratio experienced a significant surge in 2025, reaching 26.84.
- Share Price Movement
- The share price mirrored some of the P/OP ratio’s movements, though with differing magnitudes. It decreased from US$53.50 in 2021 to US$38.15 in 2023, then increased to US$50.04 in 2024, and rose substantially to US$86.38 in 2025. The increase in share price in 2025 was more substantial than the increase in the P/OP ratio, suggesting a significant shift in market perception.
- Operating Profit per Share
- Operating profit per share generally increased from US$6.42 in 2021 to US$8.05 in 2023, before declining sharply to US$3.22 in 2025. This decline in operating profit per share in 2025, coupled with the increased share price, is the primary driver of the substantial increase in the P/OP ratio.
- P/OP Ratio Interpretation
- The decreasing P/OP ratio from 2021 to 2024 could indicate increasing investor confidence in the company’s ability to generate operating profit relative to its share price, or potentially a period of undervaluation. The dramatic increase in the P/OP ratio in 2025, however, suggests that the market is now valuing the company at a much higher multiple of its operating profit, potentially due to expectations of future growth or a shift in investor sentiment despite the decline in operating profit per share.
The volatility in the P/OP ratio warrants further investigation into the underlying factors driving both the share price and operating profit per share, particularly the significant changes observed in 2025.
Price to Sales (P/S)
General Motors Co., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 903,967,853 | 995,001,891 | 1,154,433,287 | 1,394,637,226 | 1,453,021,337 | |
| Selected Financial Data (US$) | ||||||
| Automotive net sales and revenue (in millions) | 167,971) | 171,606) | 157,658) | 143,975) | 113,590) | |
| Sales per share2 | 185.82 | 172.47 | 136.57 | 103.23 | 78.18 | |
| Share price1, 3 | 86.38 | 50.04 | 38.15 | 39.32 | 53.50 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.46 | 0.29 | 0.28 | 0.38 | 0.68 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Ford Motor Co. | — | 0.21 | 0.31 | 0.35 | 0.57 | |
| Tesla Inc. | 16.48 | 13.18 | 6.28 | 6.73 | 17.42 | |
| P/S Ratio, Sector | ||||||
| Automobiles & Components | — | 3.11 | 1.67 | 1.75 | 3.70 | |
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | — | 3.45 | 2.63 | 2.27 | 3.57 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Automotive net sales and revenue ÷ No. shares of common stock outstanding
= 167,971,000,000 ÷ 903,967,853 = 185.82
3 Closing price as at the filing date of General Motors Co. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 86.38 ÷ 185.82 = 0.46
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a declining trend from 2021 to 2023, followed by increases in 2024 and 2025. This movement occurred alongside fluctuations in both share price and sales per share.
- Price-to-Sales Ratio
- The price-to-sales ratio decreased from 0.68 in 2021 to 0.28 in 2023, representing a substantial reduction over the three-year period. This suggests that the market valuation relative to revenue diminished considerably. A slight increase to 0.29 was observed in 2024, followed by a more pronounced rise to 0.46 in 2025. This recent increase indicates a growing market valuation relative to sales.
- Share Price
- The share price decreased from US$53.50 in 2021 to US$38.15 in 2023, mirroring the initial decline in the price-to-sales ratio. However, the share price then increased significantly to US$50.04 in 2024 and further to US$86.38 in 2025. This substantial increase in share price likely contributed to the subsequent rise in the price-to-sales ratio.
- Sales per Share
- Sales per share demonstrated a consistent upward trend throughout the observed period. Increasing from US$78.18 in 2021 to US$185.82 in 2025, this indicates a steady growth in revenue generated per outstanding share. The growth rate appears to have accelerated from 2022 onwards. This increasing sales per share partially offset the initial decline in share price, and amplified the later increases.
The combined effect of these trends suggests that market perception of the company’s value relative to its sales initially decreased, potentially due to concerns reflected in the share price. However, the subsequent increases in both share price and, more significantly, sales per share, led to a renewed increase in the price-to-sales ratio, indicating a more favorable market valuation by the end of the period.
Price to Book Value (P/BV)
General Motors Co., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 903,967,853 | 995,001,891 | 1,154,433,287 | 1,394,637,226 | 1,453,021,337 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 61,119) | 63,072) | 64,286) | 67,792) | 59,744) | |
| Book value per share (BVPS)2 | 67.61 | 63.39 | 55.69 | 48.61 | 41.12 | |
| Share price1, 3 | 86.38 | 50.04 | 38.15 | 39.32 | 53.50 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.28 | 0.79 | 0.69 | 0.81 | 1.30 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Ford Motor Co. | — | 0.82 | 1.19 | 1.22 | 1.48 | |
| Tesla Inc. | 19.03 | 17.66 | 9.71 | 12.26 | 31.06 | |
| P/BV Ratio, Sector | ||||||
| Automobiles & Components | — | 7.60 | 4.14 | 4.21 | 7.85 | |
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | — | 11.08 | 10.06 | 9.41 | 13.21 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 61,119,000,000 ÷ 903,967,853 = 67.61
3 Closing price as at the filing date of General Motors Co. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 86.38 ÷ 67.61 = 1.28
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased from 1.30 in 2021 to 0.69 in 2023, before recovering to 0.79 in 2024 and increasing substantially to 1.28 in 2025. This movement occurred in conjunction with changes in both share price and book value per share.
- Share Price Trend
- The share price decreased from US$53.50 in 2021 to US$38.15 in 2023, representing a decline of approximately 28.8%. A subsequent increase was observed in 2024, with the price reaching US$50.04, and continued strongly into 2025, closing at US$86.38. This represents a significant recovery and growth over the latter part of the period.
- Book Value Per Share Trend
- Book value per share demonstrated a consistent upward trend throughout the period. It increased from US$41.12 in 2021 to US$67.61 in 2025, representing a cumulative increase of approximately 64.2%. This indicates a strengthening of the company’s net asset value from an equity perspective.
- P/BV Ratio Dynamics
- The initial decline in the P/BV ratio from 2021 to 2023 coincided with a decreasing share price and increasing book value per share. This suggests that the market was valuing the company’s assets at a decreasing multiple of their book value. The subsequent recovery in the P/BV ratio from 2024 onwards was driven by a combination of increasing share price and continued growth in book value per share. The substantial increase in 2025 suggests a renewed investor confidence and a higher valuation of the company’s net assets.
The observed patterns indicate a period of market reassessment followed by a positive shift in investor sentiment. The increasing book value per share provides a foundation for the rising P/BV ratio, while the share price recovery suggests improved market perception of the company’s future prospects.