|Bid||27.79 x 1000|
|Ask||27.86 x 3000|
|Day's Range||27.15 - 28.12|
|52 Week Range||14.33 - 39.78|
|Beta (5Y Monthly)||1.39|
|PE Ratio (TTM)||26.33|
|Earnings Date||Nov 05, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 05, 2020|
|1y Target Est||38.25|
General Motors should spin off its electric-vehicle business. Deutsche Bank analyst Emmanuel Rosner believes such a move is a “no-brainer.” A new GM-EV company might be valued anywhere from $15 billion to $95 billion.
General Motors Co. would do well in spinning off its electric-vehicle operations and capabilities into a standalone company, "which could force the market to recognize its robust EV technology and upcoming (vehicle) lineup," analysts at Deutsche Bank said in a note Friday. That recognition would unlock "considerable" shareholder value, give the new company access to cheap capital to fund expected growth, and provide it the ability to attract and retain talent, the analysts said. GM seems to be considering the option, they said. Tesla Inc. , Nikola Corp. and others have reaped the benefits of that market attention, which stands "in sharp contrast with depressed legacy automakers' value," the Deutsche Bank analysts said. "This is particularly striking in the case of GM and VW, which actually have strong EV capability and upcoming product plans," they said. This "reflects massive investment flows towards vehicle electrification startups, at the expense of incumbent industry participants, and raises the question of how to get investors to recognize the value of electrification technology within large legacy organizations." The analysts reiterated their buy rating on GM, and kept their price target on the stock at $33, saying that an EV spinoff "could boost it considerably further." GM shares have lost 24% this year, contrasting with gains around 4% for the S&P 500 index in the same period.
Looking into the current session, General Motors Inc. (NYSE: GM) shares are trading at $27.75, after a 0.76% increase. Moreover, over the past month, the stock went up by 4.91%, but in the past year, fell by 25.72%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently higher from its 52 week low by 93.72%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Auto Manufacturers stocks, and capitalize on the lower share price observed over the year.The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.View more earnings on GMMost often, an industry will prevail in a particular phase of a business cycle, than other industries.General Motors Inc. has a lower P/E than the aggregate P/E of 69.07 of the Auto Manufacturers industry. Ideally, one might believe that they might perform worse than its peers, but it's also probable that the stock is undervalued.Price to earnings ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.See more from Benzinga * Analyzing General Motors's Unusual Options Activity * Looking Into General Motors's Return On Capital Employed * Unusual Options Activity Insight: General Motors(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.