Ford Motor Return On Equity vs. Current Valuation

Ford Motor Company -- USA Stock  

USD 10.92  0.41  3.62%

The Drivers Module shows relationships between Ford Motor's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Ford Motor Company over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

Ford Motor Current Valuation vs. Return On Equity Fundamental Analysis

Ford Motor Company is rated # 5 in return on equity category among related companies. It is rated # 4 in current valuation category among related companies reporting about  7,291,192,583  of Current Valuation per Return On Equity.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Ford Motor 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
23.73 %
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Ford Motor 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
=
173.02 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Current Valuation

Ford Motor Current Valuation Analysis
Ford Motor Company is rated # 4 in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Car Truck And Bus Manufacturers industry is currently estimated at about 775.07 Billion. Ford Motor totals roughly 173.02 Billion in current valuation claiming about 22% of stocks in Car Truck And Bus Manufacturers industry.
Ford Motor is rated # 4 in return on equity category among related companies.