Some fundamental drivers such as market cap or GM enterprice value can be analyzed from historical prospective to project value of the company into the future. Some investors analyze General Motors valuation indicators such as Average Assets of 186.9 B or Earnings Before Interest Taxes and Depreciation Amortization EBITDA of 13.7 B to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of GM future value. Financial Statement Analysis is much more than just reviewing and breaking down General Motors prevalent accounting reports in order to predict its past. Macroaxis encourages investors to analyze financial statement over time for various trends across multiple indicators and accounts to determine whether General Motors is a good buy for the upcoming year. Please also check Risk vs Return Analysis.
Average AssetsAverage asset value for the period used in calculation of Return on Average Equity and Return on Average Assets; derived from [Assets].
Earnings Before Interest Taxes and Depreciation Amortization EBITDAEBITDA is a non-GAAP accounting metric that is widely used when assessing the performance of companies; calculated by adding [DepAmor] back to Earning Before Interest and Taxes EBIT.
Enterprise ValueEnterprise Value (or EV) is usually referred to as GM theoretical takeover price. In the event of an acquisition, an acquirer would have to take on General Motors debt, but would also pocket its cash. Enterprise Value is more accurate representation of GM value than its market capitalization because it takes into account all of General Motors Company existing debt. Enterprise value is a measure of the value of a business as a whole; calculated as [MarketCap] plus [DebtUSD] minus [CashnEqUSD].
Market CapitalizationMarket capitalization (or market cap) is the total value of the shares outstanding of General Motors Company. It is equal to GM current share price times the number of General Motors outstanding shares. Represents the product of [SharesBas]; [Price] and [ShareFactor].