What Could Impact General Motors’ Valuation Multiples in 4Q16?
As of October 25, 2016, General Motors’ forward EV-to-EBITDA multiple is 2.3x. It’s lower than Ford’s (F) valuation multiple at 2.7x.
In May 2016, General Motors completed the acquisition of Cruise Automation in a $581 million deal to accelerate its autonomous vehicle development.
The Chevrolet Bolt will be a mass-targeted EV. It should be available in the market by the end of this year—earlier than the Tesla Model 3.
In 3Q16, General Motors Financial reported revenues of $2.5 billion—46.4% higher than $1.7 billion in the same quarter last year.
In 3Q16, General Motors’ gross margins expanded to 18.8% from 17.5% in the same quarter last year. Its adjusted EBITDA was $5.7 billion.
General Motors stated that the Brexit vote was the primary reason for its poor performance in the United Kingdom and other European markets.
In 3Q16, General Motors’ (GM) revenues stood at $42.8 billion—a rise of 10.2% compared to $38.8 billion in the same quarter the previous year.
General Motors (GM) released its 3Q16 earnings on October 25. Its adjusted EPS stood at $1.72 for the quarter—14.7% higher than $1.45 in 3Q15.
In its latest development, Facebook (FB) has added a feature that supports ordering food and delivery from Facebook business pages—without leaving the platform.
Time Warner’s Warner Bros. is trying to extend the reach of its television programming. Warner Bros. recently entered into a programming distribution deal with beIN.
Various multiples can be used to evaluate a stock. In this article, we’ll use the PE (price-to-earnings) multiple due to the high visibility in McDonald’s earnings.
On October 24, 2016, McDonald’s was trading at $113.6. The company’s share price may already have been factored in to the estimates we’ve discussed in this series.
Despite softening growth in the restaurant industry, analysts have raised their same-store sales growth (or SSSG) estimates for McDonald’s for the next three quarters.
McDonald’s (MCD) reported 3Q16 EBIT (earnings before interest and tax) of $2.3 billion, which represented an EBIT margin of 35.3%.
McDonald’s has posted a worldwide SSSG of 3.5%, compared to analysts’ consensus estimate of 1.8%. Let’s take a look at the SSSG in each of its segments.
With the intention of expanding its franchised restaurants to account for 95% of its total restaurants, McDonald’s has been focused on franchising and refranchising.
McDonald’s (MCD) earns its revenue from company-operated restaurant sales and royalty and license fees collected from its franchisees.
McDonald’s (MCD) reported its 3Q16 results on October 21, 2016. The company posted adjusted EPS (earnings per share) of $1.62 on revenue of $6.4 billion.
Trinseo (TSE) has a market cap of $2.6 billion. It fell 1.7% to close at $55.15 per share on October 24, 2016.
Kimberly-Clark (KMB) has a market cap of $40.8 billion. It fell 4.7% to close at $113.91 per share on October 24, 2016.