Is Ford Motor Company (F) overvalued?
On Equity Rank's model estimate, F trades close to its fair value (1% below it). Ford Motor Company (F) last closed at $12.44; the multi-method model fair value is $12.58.
| Price | Model fair value | Price vs model |
|---|---|---|
| $12.44 | $12.58 | 1% below |
What the answer rests on
- 3 of 5 valuation methods put F's value above its price and 2 put it below, so the methods disagree.
- To justify today's price, F's free cash flow would need to grow about -13.9% a year for ten years (a reverse discounted cash flow).
- Over the past year the price sat below the model fair value on 18% of trading days. The gap ranged from 2% below to 119% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind F's fair value · What prices assume · Other companies