How Much Is GM Worth?
General Motors is an automobile manufacturer whose brands include Buick, Cadillac and Chevrolet. CEO Mary Barra has been leading GM since 2014. In June 2018, the company announced that Dhivya Suryadevara would be the company’s chief financial officer, which meant that GM was only the second Fortune 500 company, behind Hershey, to have both a woman CEO and CFO.
Check out the company’s financial stats, including GM’s share price, to see how its Fortune 500 status translates to expectations of its market performance and decide if it’s the right investment for you.
| About General Motors | |
|---|---|
| Headquarters | Detroit |
| Year Founded | 1908 |
| CEO Mary Barra’s Salary | $1,995,000 |
| What General Motors Is Worth | |
|---|---|
| Share Price, 52-Week Range | $47.07-$67.21 |
| 2021 Revenue | $127 billion |
| 2021 Profit | $10.02 billion |
| GOBankingRates’ Evaluation of GM’s Net Worth | $168.91 billion |
GM’s 4th Quarter 2021 Earnings Report
Closing a difficult year in which semiconductor chip shortages resulting from the pandemic forced GM to shut down production in much of North America during the second quarter of 2021, GM reported fourth-quarter 2021 earnings that beat analysts’ predictions and revenue that fell slightly short, CNBC reported.
North American operations drove most of GM’s revenue, generating over $10.3 billion compared to $827 million from international operations.
In a letter to shareholders, Barra reiterated an earlier announcement that that company would invest $7 billion — its biggest investment ever — in a massive expansion of battery cell and electric vehicle assembly in the United States. GM plans to increase its capacity to over one million EVs per year by the end of 2025. In addition, GM expects record earnings of $13 billion to $15 billion in 2022, thanks to an improving outlook for semiconductors in the U.S. and China, Barra wrote. That estimate takes into consideration increased investments in GM’s Cruise autonomous vehicle and BrightDrop electric light commercial vehicle businesses as well as its portfolio of electric vehicles.
GM’s Market Cap: $70.95B
Market capitalization considers all of a company’s stock in order to gauge its worth. Specifically, it’s calculated by multiplying the number of outstanding shares by the share price. The higher the cap, the more value investors find with the company.
Although the stock suffered a steep decline in February 2020, it recovered to pre-COVID-19 levels by the end of that year and is up almost 41% in the last year.
GM’s Net Worth: $168.91B
Market cap gives you a sense of what the market values a company at, but it is based entirely on market sentiment, which, in turn, is based on a multitude of consumer variables and market players. The GOBankingRates evaluation of a company’s net worth, however, considers solid figures like assets and revenue, taking into account full-year profits and revenue from the last three years and the company’s assets and debts.
Based on GM’s revenue and profits from the last three years, GM is worth just under $169 billion.
GM Rides Auto Industry Ups and Downs
Shutdowns due to the pandemic and chip shortages have created shockwaves across the auto industry over the last two years. In addition to gauging the impact in the shorter term, analysts will be watching for signs indicating whether GM will meet its long-term goal to increase revenue more than 100% and increase earnings 300% by 2030. Of course, GM has a history of riding out whatever storms have crossed its path.
The company lost billions toward the end of 2017 due to inventory issues but managed to make a comeback in the first quarter of 2018 thanks to strong crossover sales and adept cost control.
The company suffered perhaps its biggest financial blowback in 2009, when it had to declare bankruptcy after suffering losses and market share declines. The move forced GM to close dozens of facilities and left thousands of people out of work.
GM survived its bankruptcy because of government intervention. The company returned to the public in 2010, after the government began selling the majority of its shares. Its 2010 IPO, was, at the time, the largest offering ever.
GM Vehicles
The company lists its brands as Chevrolet, Buick, GMC and Cadillac, and it has international ventures such as Baojun and Wuling. Its EV1 model was one of the earliest attempts to mass-produce an electric car but was discontinued due to high production costs.
GM continues building out its Ultium platform, which will facilitate the launch of 20 EVs in North America by 2025, according to the earnings presentation. FedEx received delivery of the first BrightDrop light commercial EV in December 2021, and Merchants Fleet and Walmart have deals to purchase a total of 23,000 BrightDrop vehicles.
Cruise vehicles are still being tested in San Francisco. Team members have ridden more than 20,000 miles over 600 trips, and members of the public can add their names to a waiting list to take rides of their own.
Among the initiatives supporting its EV business and portfolio is CarBravo, a new omnichannel used vehicle shopping experience GM expects to help create a market for used EVs.
General Motors’ History and CEO
William Crapo Durant founded GM in 1908 after achieving financial success from building horse-drawn carriages. Since its founding, GM has contributed to several iconic American events, including collaborating with NASA to build the Lunar Rover, outfitting presidents in stylish Cadillacs, and even assisting in the creation of the first human heart pump.
Mary Barra is GM’s first woman CEO and the first woman to head an automobile manufacturer. She took her first step to lead the Fortune 500 company at age 18 when she interned at the Pontiac Motor Division. She has served as GM’s CEO since January 2014 and was elected chairman of GM’s board in January 2016. Her total compensation reached $23.7 million in 2020, the last year with salary data available, which made her the highest-paid Detroit Three CEO.
Sean Dennison contributed to the reporting for this article.
Data was compiled between Feb. 13, 2022, and is subject to change.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
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- Salary.com. "Compensation Information for Mary T. Barra, Chairman and Chief."
- Investing.com. "GM Stock Price Today | GM Live Ticker."
