General Motors Company (GM) is overvalued and Toyota Motor Corp ADR (TM) is slightly undervalued.
Against our estimates of intrinsic value, TM trades at the wider discount: a margin of safety of +8%, against -40% for GM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.1% (average of 3 methods) values the shares at $59.50; the price of $83.45 is 40% above that value, and 79% of that value comes from beyond year five.
Leak Score 42/100 on 10 of 12 signals
Discounting its cash flows at 6.8% (average of 3 methods) values the shares at $207.90; the price of $192.06 is 8% below that value, and 84% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
| Metric | GM | TM |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $83.45 | $192.06 |
| Intrinsic value | $59.50 | $207.90 |
| Margin of safety | -40% | +8% |
| Leak Score | 42/100 (10/12) | 30/100 (3/12) |
| Market cap | $73.2B | $227.4B |
| Revenue growth, 5 years | 8.6% | 5.6% |
| Operating margin | 1.0% | 7.0% |
| Net margin | 1.0% | 8.6% |
| Return on equity | 3.0% | 12.1% |
| Debt to equity | 2.06 | 1.18 |
| P/E | 42.1x | 8.5x |
| Forward P/E | 5.5x | 8.7x |
| P/B | 1.2x | 1.0x |
| Dividend yield | 0.9% | 3.4% |