Should you be concerned about Ford (USA Stocks:F) latest valuation?

F Stock  USD 11.51  0.09  0.79%   
As many millenniums are trying to avoid automobiles space, it makes sense to digest Ford Motor a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is current the firm value sustainable? We will go over Ford Motor valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Reviewed by Rifka Kats

Ford Motor has accumulated 88.4 B in total debt with debt to equity ratio (D/E) of 3.08, indicating that Ford relies heavily on borrowing.
Our trade advice tool can cross-verify current analyst consensus on Ford Motor and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Ford Motor using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ford Motor based exclusively on its fundamental and basic technical indicators. By analyzing Ford's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ford's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ford. We calculate exposure to Ford's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ford's related companies.

Ford Motor Investment Alerts

Ford investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Ford Motor performance across your portfolios.Please check all investment alerts for Ford

Ford Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Ford value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ford competition to find correlations between indicators driving the intrinsic value of Ford.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Ford, but it might be worth checking our own buy vs. sell analysis

What is driving Ford Investor Appetite?

The latest indifference towards the small price fluctuations of Ford Motor could raise concerns from shareholders as the firm is trading at a share price of 13.79 on 1,306,738 in volume. The company directors and management did not add any value to Ford investors in January. However, most investors can still diversify their portfolios with Ford Motor to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.5. The current volatility is consistent with the ongoing market swings in January 2023 as well as with Ford unsystematic, company-specific events.
 2020 2021 2022 2023 (projected)
Receivables52.39 B43.91 B50.5 B59.86 B
Inventories10.81 B12.06 B10.86 B9.47 B

Margins Breakdown

Ford profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Ford itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Ford profit margins.
Profit Margin
Operating Margin
Gross Margin
Operating Margin4.42
EBITDA Margin22.46
Gross Margin18.64
Profit Margin16.33

Ford Earnings Before Interest Taxes and Depreciation Amortization EBITDA is rather stable at the moment. Ford Revenue Per Employee is increasing over the last 8 years. Furthermore, Ford Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment. Ford Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. Ford Revenue Per Employee is rather stable at the moment. Furthermore, Ford Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.

Our take on today Ford surge

Latest Market Risk Adjusted Performance is up to 0.09. Price may dip again. Ford Motor currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of -0.01. However, we advise investors to further question Ford Motor expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ford's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ford's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Ford

Although some companies within the auto manufacturers industry are still a little expensive, even after the recent corrections, Ford may offer a potential longer-term growth to shareholders. On the whole, as of the 2nd of February 2023, our ongoing 90 days 'Buy-vs-Sell' recommendation on the firm is Hold. We believe Ford is undervalued with close to average odds of distress for the next two years.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ford Motor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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