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$F undervalued?
One of the main reasons why I decided to invest in $F is because I started to notice a lot of new Broncos in my neighborhood as well as a few Mach-Es. It's clear that Ford is doing a great job of creating a car lineup that people like, so it makes sense to me to bet on its future and profit from it.
This article from Yahoo Finance decided to crunch the numbers to determine whether or not it's undervalued, and according to their calculations... it is!
"Compared to the current share price of US$15.9, the company appears quite undervalued at a 36% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent."
It's important to note that this is based on 2 assumptions: the discount rate and cash flows. I mentioned what I thought about their current car lineup at the beginning because if people like their cars, then people will buy them, and likely their cash will continue to ~flow~. It was recently announced that prices for the Mach-E are increasing due to a rise in material costs.
While Ford's sales fell 6.8% to 1.9 million cars last year, "A big part of Ford’s EV story is the Mustang Mach-E EV. The Dearborn, Michigan, carmaker sold 27,140 of these electric vehicles, topping the 24,828 sales total of GM’s Chevrolet Bolt EV models and one Hummer EV in 2021."
Ford has been around for a loooooong time, and it's likely it's not going away anytime soon, especially with their current car lineup.
Are you bullish or bearish?
24/7 Wall St.
The Most Popular Ford Models in America
Ford’s sales fell 6.8% to 1.9 million cars last year, third place among all automakers, as Toyota unseated General Motors for first place, ending a 90-year run for GM. (Unfortunately for Ford, it topped the list of the car brands with the worst recalls this year.) The news wasn’t all bad for Ford. The automaker […]
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