Ally Financial Stock Valuation

ALLY
 Stock
  

USD 25.92  0.20  0.77%   

Do you wonder what the value of Ally Financial is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Ally Financial, is its stock price multiplied by the total number of shares outstanding, calculating Ally Financial's enterprise value requires a different approach. It uses Ally Financial's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Ally Financial Enterprise Value is fairly stable at the moment as compared to the past year. Ally Financial reported Enterprise Value of 20.53 Billion in 2021. Tangible Asset Value is likely to rise to about 194.9 B in 2022, whereas Free Cash Flow is likely to drop slightly above 3.9 B in 2022.
Ally Financial shows a prevailing Real Value of $35.14 per share. The current price of the firm is $25.92. At this time, the firm appears to be undervalued. Our model approximates the value of Ally Financial from analyzing the firm fundamentals such as Return On Equity of 0.14 %, profit margin of 0.26 %, and Current Valuation of 25.79 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Ally Financial Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Ally Financial's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Ally Financial Most Recent Valuation Data

Dividend Share
1.15
Beta
1.27
Fiscal Year End
December
property Plant And Equipment Net
12.2 B
Enterprise Value
25.8 B
net Debt
12.1 B
Undervalued
Today 25.92
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.
Our valuation method for Ally Financial is useful when determining the fair value of the Ally Financial stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ally Financial. Since Ally Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ally Financial 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.
35.14
Real Value
38.59
Upside
Estimating the potential upside or downside of Ally Financial helps investors to forecast how Ally Financial 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:
Earnings
Estimates (7)
LowProjected EPSHigh
8.428.598.81
Details
Hype
Prediction
LowEstimated ValueHigh
22.4425.8929.34
Details
11 Analysts
Consensus
LowTarget PriceHigh
53.0066.3681.00
Details
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. When choosing an evaluation method for Ally Financial, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Ally Financial Investments

174.64 Billion

Ally Financial Valuation Drivers Correlation

Many accounts on the financial statements of Ally Financial are highly interrelated and sometimes correlated. Consequently, when conducting Ally Financial's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Ally Financial
Click cells to compare fundamentals

Ally Financial Valuation Trend

Knowing Ally Financial's actual value is paramount for traders to make sound investment determinations. Ally Financial's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ally Financial's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ally Financial's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Ally Financial Market Cap

Ally Financial is rated second in market capitalization category among related companies. Market capitalization of Financials industry is presently estimated at about 58.54 Billion. Ally Financial retains roughly 7.8 Billion in market capitalization claiming about 13% of equities under Financials industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Ally Financial Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Ally Financial's current stock value. Our valuation model uses many indicators to compare Ally Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ally Financial competition to find correlations between indicators driving Ally Financial's intrinsic value. More Info.
Ally Financial is rated fifth in annual yield category among related companies. It is rated below average in price to earning category among related companies reporting about  99.34  of Price to Earning per Annual Yield. Ally Financial Price to Earnings Ratio are fairly stable at the moment as compared to the past year. Ally Financial reported Price to Earnings Ratio of 5.75 in 2021. Earnings before Tax is likely to rise to about 4.1 B in 2022, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 4.7 B in 2022.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ally Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ally Financial's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ally Financial's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ally Financial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ally Financial and how it compares across the competition.

About Ally Financial Valuation

The stock valuation mechanism determines the current worth of Ally Financial on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ally Financial. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ally Financial based exclusively on its fundamental and basic technical indicators. By analyzing Ally Financial's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ally Financial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, 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, relevant financial multiples and ratios, and then comparing them to Ally Financial's related companies.
Fiscal Year End
December
Industry
Credit Services
Concentration
Consumer Finance
Full Time Employees
10.5 K
Service Category
Consumer Finance
Employer Id Number
38-0572512
Last ReportedProjected for 2022
Gross Profit7.9 B7.1 B
Profit Margin 28.62  30.89 
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 Financial, 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.

Ally Financial Dividends Analysis For Valuation

Dividend Yield is likely to rise to 0.0199 in 2022, whereas Preferred Dividends Income Statement Impact is likely to drop slightly above 681.8 M in 2022. . Ally Financial Earning Before Interest and Taxes EBIT is fairly stable at the moment as compared to the past year. Ally Financial reported Earning Before Interest and Taxes EBIT of 3.79 Billion in 2021. Earnings per Basic Share is likely to rise to 8.93 in 2022, whereas Accumulated Retained Earnings Deficit are likely to drop (1.7 B) in 2022.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact685.8 M681.8 M
Payment of Dividends and Other Cash Distributions-324 M-349.6 M
Dividend Yield 0.018  0.0199 
Dividends per Basic Common Share 0.88  0.79 
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 Financial 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 Financial 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 Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Ally Financial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y-0.536

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 Financial we look at many different elements of the entity such as Ally Financial's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ally Financial's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Ally Financial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
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.
Please continue to Trending Equities. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

Complementary Tools for analysis

When running Ally Financial 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 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.
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Is Ally Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ally Financial. If investors know Ally Financial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ally Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.54) 
Market Capitalization
7.8 B
Quarterly Revenue Growth YOY
(0.14) 
Return On Assets
0.0114
Return On Equity
0.14
The market value of Ally Financial is measured differently than its book value, which is the value of Ally Financial that is recorded on the company's balance sheet. Investors also form their own opinion of Ally Financial's value that differs from its market value or its book value, called intrinsic value, which is Ally Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ally Financial's market value can be influenced by many factors that don't directly affect Ally Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ally Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Ally Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ally Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.