Business Valuation: Ford Motor Company
- darioiori22
- Jan 30, 2025
- 1 min read
This equity research report provides an in-depth valuation and analysis of Ford Motor Company, a leading global automotive manufacturer. The company operates through three core segments—Ford Blue, Ford Pro, and Ford e—focusing on internal combustion, commercial, and electric vehicles, respectively. It also provides financial services via Ford Credit. Despite Ford’s broad global presence, the U.S. remains its primary market, generating most of its revenue.
Ford’s financial performance has shown mixed trends. While the company experienced revenue growth post-COVID-19, profitability margins have declined due to rising costs and supply chain disruptions. Ford's financial structure is heavily debt-reliant, requiring diligent cash flow management. Recent initiatives, including partnerships with Tesla and Google, aim to expand its electric vehicle (EV) offerings and digitalization.
A valuation using a Discounted Cash Flow (DCF) model and market multiples resulted in a target share price of $11.16, close to its current trading price of $11.13, leading to a “hold” recommendation. Key investment risks include regulatory uncertainty, operational vulnerabilities in its supply chain, and competition, particularly from Chinese EV manufacturers.
Although Ford has made strides in electrification and autonomous driving, its delayed entry into the EV market has hindered competitiveness. The report concludes that Ford must address regulatory pressures, rising warranty costs, and evolving consumer preferences to maintain its market position and long-term growth potential.
See the full report in the link below!
Credits:
Paolo Tagliaferri - Team Leader
Adriana Ovcharova
Alexandra James
Claudia Fantin
Lorenzo Caselli
Natalia Borisova
Sebastian Brickett
This valuation summary offers a clear, balanced look at Ford’s current position, especially how the DCF and market multiples support a sensible hold recommendation. I found the discussion around EV competition and supply chain pressures particularly insightful for long-term investors. From a digital investment research angle, the report feels like a solid immersive financial analysis, while also reading as a strategic valuation deep exploration of how legacy automakers adapt to market shifts and regulatory challenges.