Long/Short Investments
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Long/Short Investments in L/S Equity: Valuation and Ideas,

​Final Thoughts on GM

GM, in my opinion, is firmly a hold. I believe the stock is about 6% undervalued and also comes with the benefit of spitting off a 5% annual dividend.

Based on sensitivity considerations involving the company’s WACC and long-term growth rate, g (assumed at 2.00%), I have the company valued somewhere between $28.35-$36.86 per share:

However, of my current holdings this is one of my lowest conviction ideas. Consequently, if something better comes up I may reduce this position or cut it entirely.