Top auto manufacturers tend to have stock that are more volatile than the overall market, so it’s generally appropriate to calculate a higher cost of equity. I have GM’s at 12.44% and it’s cost of debt, based on Morningstar data, at 5.28%, or 3.80% tax-adjusted. Based on relative weighting in the capital structure, I have GM’s cost of capital at 7.23%. Based on the company’s operations/financials, this would put the value of the company at $119.4 billion, or 20% over its current valuation. I have the company’s market capitalization priced at $48.3 billion, or approximately $31.35 per share, or 6% undervalued. The discrepancy between the believed undervaluation of the company’s enterprise value and market capitalization stems from the fact that I don’t make any cash-related adjustments when coming to equity value. GM is one of the rare companies whose current liabilities exceed its current assets, so I don’t consider any of its cash as excess. This would also assess the company more in line with an EBITDA multiple of approximately 10x (it currently trades at 6.4x):