At this time, the firm appears to be undervalued. Ally Financial shows a prevailing Real Value of $40.39 per share. The current price of the firm is $36.93. Our model approximates the value of Ally Financial from analyzing the firm fundamentals such as Return On Equity of 0.0643, current valuation of 23.64 B, and Profit Margin of 0.13 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ally Financial's valuation include:
Price Book
0.9182
Enterprise Value
23.6 B
Price Sales
1.6835
Forward PE
7.9618
Trailing PE
14.9514
Undervalued
Today 36.93
Please note that Ally Financial's price fluctuation is very steady at this time. Calculation of the real value of Ally Financial is based on 3 months time horizon. Increasing Ally Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Ally Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ally Stock. However, Ally Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 36.93
Real 40.39
Target 43.07
Hype 36.87
The intrinsic value of Ally Financial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Ally Financial's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Ally Financial helps investors to forecast how Ally stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ally Financial more accurately as focusing exclusively on Ally Financial's fundamentals will not take into account other important factors:
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ally Financial's intrinsic value based on its ongoing forecasts of Ally Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ally Financial's closest peers.
Ally Financial Cash
8.51 Billion
Ally Valuation Trend
Analysing the historical paterns of Ally Financial's enterprise value and its market capitalization is a good way to estimate and gauge the value of Ally Financial over time and is usually enough for investors to make rational market timing decisions.
Ally Revenue by Product
Ally Financial Total Value Analysis
Ally Financial is presently expected to have valuation of 23.64 B with market capitalization of 11.39 B, debt of 20.23 B, and cash on hands of 5 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ally Financial fundamentals before making equity appraisal based on enterprise value of the company
About 84.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.92. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ally Financial has Price/Earnings To Growth (PEG) ratio of 0.57. The entity last dividend was issued on the 31st of January 2025. The firm had 310:1 split on the 10th of April 2014. Ally Financial may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Ally suggests not a very effective usage of assets in January.
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
Covid
Ally Financial Ownership Allocation
Ally Financial holds a total of 304.72 Million outstanding shares. The majority of Ally Financial outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Ally Financial to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Ally Financial. Please pay attention to any change in the institutional holdings of Ally Financial as this could imply that something significant has changed or is about to change at the company. On August 13, 2022, Representative Susie Lee of US Congress acquired under $15k worth of Ally Financial's common stock.
Ally Financial Profitability Analysis
The company reported the previous year's revenue of 9.07 B. Net Income was 1.02 B with profit before overhead, payroll, taxes, and interest of 6.76 B.
Our relative valuation model uses a comparative analysis of Ally Financial. We calculate exposure to Ally Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Ally Financial's related companies.
Ally Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Ally Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Ally Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Ally Financial represents a small ownership stake in the entity. As a stockholder of Ally, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
There are various types of dividends Ally Financial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Ally shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Ally Financial directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ally pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ally Financial by the value of the dividends paid out.
Ally Financial Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding
305.1 M
Quarterly Earnings Growth Y O Y
0.205
Forward Price Earnings
7.9618
Ally Financial Current Valuation Indicators
Valuation refers to the process of determining the present value of Ally Financial and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ally we look at many different elements of the entity such as Ally's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ally Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ally Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ally Financial's worth.
Additional Tools for Ally Stock Analysis
When running Ally Financial's price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.