Ford Motor Company (F): Get Ready for General Motors Company (GM) to Catch Up

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All the while, GM trades at just 6.4 times one-year forward earnings. That’s cheap for any automaker, not to mention one on the brink of a new product cycle. For comparison, Toyota trades at more than 13 times forward earnings. Ford Motor Company (NYSE:F) trades at 7.6, but it has shown investors a track record of encouraging performance in recent years, unlike GM.

As the U.S. government exits its position, and investor faith restores, look for a multiple correction in GM’s stock price — and, remember, that’s not even factoring in upside potential in its operating business.

The article Get Ready for GM to Catch Up originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors and owns shares of Ford.

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