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    General Motors (GM) Renews SAIC Deal As EV Push Raises The Valuation Question

    Simply Wall St·08/09/2026 21:29:41
    Listen to the news

    General Motors (GM) is back in focus after renewing its long-running joint venture with SAIC Motor to 2047, along with progress on a fast-charging network across the United States that supports its broader electric vehicle ambitions.

    See our latest analysis for General Motors.

    These China and US EV infrastructure updates come as General Motors trades at US$87.58, with a 30 day share price return of 12.5% and a 1 year total shareholder return of 65.11%.

    If GM's EV activities have your attention, this could be a good moment to see what else is on the move by checking out our screener of 37 power grid technology and infrastructure stocks

    After a 65.11% 1-year total return and fresh commitments in China and US charging, General Motors now sits at US$87.58. Do the current fundamentals still leave enough upside potential to justify the risk for new buyers?

    Most Popular Narrative: 7.6% Undervalued

    Against the narrative fair value of $94.81 per share, General Motors at $87.58 is framed as modestly undervalued, with that gap resting heavily on future cash flow strength rather than recent headline profits.

    The growing monetization of software and services such as Super Cruise and OnStar, evidenced by $4 billion in deferred revenue and rapid subscriber growth, creates higher-margin recurring revenue streams, supporting long-term earnings expansion beyond traditional vehicle sales.

    Read the complete narrative.

    Want to see what turns those software and grid projects into that valuation gap? The narrative leans on stronger margins, rising earnings and a lower future multiple than today. The crucial question is how those assumptions stack up against GM's current 1% margin and recent one off losses.

    Result: Fair Value of $94.81 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, there is still meaningful risk that persistent tariffs and higher EV warranty costs could pressure General Motors margins and challenge the current undervalued narrative.

    Find out about the key risks to this General Motors narrative.

    Another View: General Motors Through A P/E Lens

    The earlier narrative paints General Motors as 7.6% undervalued relative to the fair value of $94.81 per share. On the flip side, the current P/E of 41.4x looks heavy against the global auto sector at 12.7x, the peer average at 28.7x, and an estimated fair ratio of 27x.

    Those gaps suggest investors today are paying a premium for GM that sits well above where the P/E ratio could move over time if sentiment cools or earnings do not catch up as quickly as expected. The question for you is whether the cash flow story really compensates for that multiple risk.

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:GM P/E Ratio as at Aug 2026
    NYSE:GM P/E Ratio as at Aug 2026

    Next Steps

    If the mixed signals around General Motors leave you undecided, move quickly and review the full picture for yourself with our breakdown of 2 key rewards and 4 important warning signs

    Looking for more ideas beyond General Motors?

    If General Motors has sharpened your focus, do not stop here. Use the Simply Wall Street Screener to quickly spot other stocks that might fit your approach.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.