General Motors Stock Market Value
GM Stock | USD 42.44 0.02 0.05% |
Symbol | GM |
General Motors Price To Book Ratio
Is GM's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.135 | Dividend Share 0.36 | Earnings Share 7.32 | Revenue Per Share 125.984 | Quarterly Revenue Growth (0) |
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
GM 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to GM's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of GM.
03/20/2024 |
| 04/19/2024 |
If you would invest 0.00 in GM on March 20, 2024 and sell it all today you would earn a total of 0.00 from holding General Motors or generate 0.0% return on investment in GM over 30 days. GM is related to or competes with Tesla, Rivian Automotive, Nio, Xpeng, Lucid, Ford, and Honda. General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in Nort... More
GM Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure GM's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess General Motors upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 1.41 | |||
Information Ratio | 0.1355 | |||
Maximum Drawdown | 11.09 | |||
Value At Risk | (2.19) | |||
Potential Upside | 2.7 |
GM Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for GM's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as GM's standard deviation. In reality, there are many statistical measures that can use GM historical prices to predict the future GM's volatility.Risk Adjusted Performance | 0.1156 | |||
Jensen Alpha | 0.2179 | |||
Total Risk Alpha | 0.126 | |||
Sortino Ratio | 0.1591 | |||
Treynor Ratio | 0.2538 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of GM's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
General Motors Backtested Returns
GM appears to be very steady, given 3 months investment horizon. General Motors holds Efficiency (Sharpe) Ratio of 0.19, which attests that the entity had a 0.19% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for General Motors, which you can use to evaluate the volatility of the firm. Please utilize GM's Market Risk Adjusted Performance of 0.2638, risk adjusted performance of 0.1156, and Downside Deviation of 1.41 to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, GM holds a performance score of 14. The company retains a Market Volatility (i.e., Beta) of 1.12, which attests to a somewhat significant risk relative to the market. GM returns are very sensitive to returns on the market. As the market goes up or down, GM is expected to follow. Please check GM's sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change , to make a quick decision on whether GM's current trending patterns will revert.
Auto-correlation | -0.65 |
Very good reverse predictability
General Motors has very good reverse predictability. Overlapping area represents the amount of predictability between GM time series from 20th of March 2024 to 4th of April 2024 and 4th of April 2024 to 19th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of General Motors price movement. The serial correlation of -0.65 indicates that roughly 65.0% of current GM price fluctuation can be explain by its past prices.
Correlation Coefficient | -0.65 | |
Spearman Rank Test | -0.63 | |
Residual Average | 0.0 | |
Price Variance | 0.62 |
General Motors lagged returns against current returns
Autocorrelation, which is GM stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting GM's stock expected returns. We can calculate the autocorrelation of GM returns to help us make a trade decision. For example, suppose you find that GM has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
Timeline |
GM regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If GM stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if GM stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in GM stock over time.
Current vs Lagged Prices |
Timeline |
GM Lagged Returns
When evaluating GM's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of GM stock have on its future price. GM autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, GM autocorrelation shows the relationship between GM stock current value and its past values and can show if there is a momentum factor associated with investing in General Motors.
Regressed Prices |
Timeline |
GM Investors Sentiment
The influence of GM's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in GM. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to GM's public news can be used to forecast risks associated with an investment in GM. The trend in average sentiment can be used to explain how an investor holding GM can time the market purely based on public headlines and social activities around General Motors. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
GM's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GM's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average GM's news discussions. The higher the estimated score, the more favorable is the investor's outlook on GM.
GM Implied Volatility | 42.33 |
GM's implied volatility exposes the market's sentiment of General Motors stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if GM's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that GM stock will not fluctuate a lot when GM's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards GM in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, GM's short interest history, or implied volatility extrapolated from GM options trading.
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Complementary Tools for GM Stock analysis
When running GM's price analysis, check to measure GM's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GM is operating at the current time. Most of GM's value examination focuses on studying past and present price action to predict the probability of GM's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GM's price. Additionally, you may evaluate how the addition of GM to your portfolios can decrease your overall portfolio volatility.
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