General Motors CompanyGM General Motors Company fair value $28–$82

GM is navigating a highly capital-intensive transition to EV and AV models while managing the cyclicality of its legacy ICE business. The severe discount against external street internal valuation cross-checks ($94.08) is fully intentional and bridged by structurally overweighting Owner EarningsOwner earningsBuffett-method cash earnings: net income plus D&A minus maintenance capex. A floor estimate of the cash a business throws off after sustaining its current productive base., which enforces a steep penalty for the EV transition's massive maintenance capexMaintenance capexCapex required to sustain current revenue and capacity. Approximately equal to depreciation in steady-state. Subtracted from earnings in the owner-earnings construct. that unadjusted EPSEarnings per shareNet income divided by weighted-average diluted shares outstanding. The headline accounting earnings figure on a per-share basis. multipliers ignore.

• Manufacturing Scale
  Manufacturing Scale
• Brand Recognition
  Brand Recognition
• Cycle upside
  High capacity utilization and strong pricing power.