Using an unlevered Free Cash Flow to Firm (FCFF) model, we project General Motors Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 0.3% to 0.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 73, DPO 63, DIO 37). At a 5.0% WACC with mid-year discounting, the terminal value (100% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 22.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $530.46 per share, suggesting GM is undervalued by 606.4% at the current price of $75.09.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 9,269 | 9,501 | 9,585 | 10,078 | 10,161 | 10,415 |
| (−) Net Interest | 1,021 | 1,047 | 1,056 | 1,111 | 1,120 | 1,148 |
| (+) D&A | 21,962 | 22,566 | 23,481 | 23,757 | 24,001 | 24,601 |
| EBITDA | 32,252 | 33,115 | 34,123 | 34,946 | 35,281 | 36,164 |
| (−) Tax | 1,563 | 1,603 | 1,617 | 1,700 | 1,714 | — |
| (−) CapEx | 25,132 | 25,762 | 25,990 | 27,326 | 27,551 | — |
| (−) ΔWC | 21,810 | 638 | 231 | 1,350 | 228 | — |
| Free Cash Flow (FCF) | -16,253 | 5,112 | 6,285 | 4,570 | 5,788 | — |
| Peers' EBITDA Multiple | 22.0x | |||||
| Terminal Value | 794,512 | |||||
| WACC / Discount Rate | 5.00% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -15,861 | 4,751 | 5,564 | 3,853 | 4,647 | 622,521 |
| Enterprise Value | 625,475 | |||||
| Projection Period | 2,954 | 0.5% | ||||
| Terminal Value | 622,521 | 99.5% | ||||
| (−) Current Net Debt | 109,332 | |||||
| Equity Value | 516,143 | |||||
| (÷) Outstanding Shares | 973M | |||||
| Fair Price | $530 | +606.4% | ||||
| WACC \ EV/EBITDA Exit Multiple | 18.0x | 20.0x | 22.0x | 24.0x | 26.0x |
|---|---|---|---|---|---|
| 3.0% | $468 | $532 | $596 | $660 | $724 |
| 4.0% | $440 | $501 | $562 | $623 | $684 |
| 5.0% | $414 | $472 | $530 | $589 | $647 |
| 6.0% | $389 | $445 | $500 | $556 | $611 |
| 7.0% | $366 | $419 | $472 | $525 | $578 |
Current price: $75.09. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.