Understanding Ford Enterprise Value and Its Impact

Ford's enterprise value is a staggering $123 billion, which is a significant indicator of the company's financial health.

This value is calculated by adding the company's market capitalization to its debt and subtracting its cash and cash equivalents.

Ford's market capitalization is $45 billion, which is a substantial portion of its enterprise value.

This figure reflects the company's total value, including its debt and cash, and is a key metric for investors and analysts.

Ford's debt, which stands at $78 billion, is a significant component of its enterprise value.

Ford's financial performance has been a mixed bag in recent years. The company's sales have been growing at an average rate of 1.59% per year over the last 5 years.

Their earnings before interest, taxes, depreciation, and amortization (EBITDA) has seen significant growth, increasing by an average of 10.3% per year to reach USD 4,023 million in 2019.

This growth in EBITDA has resulted in a margin of 2.58% of sales, lower than the 4.39% average seen in the last five years.

Ford's net income in 2019 was a relatively low USD 47.0 million, resulting in a return on equity (ROE) of 0.136% and a return on capital employed (ROCE) of 0.024%.

These figures are significantly lower than the company's 5-year average ROE of 15.5% and ROCE of 2.68%.

The company's financial situation is also reflected in its net debt, which stood at USD -7,610 million at the end of 2019, equivalent to -22.9% of equity.

This net debt is a significant burden, with the company's net debt to EBITDA ratio standing at -1.89x, lower than the 5-year average of -1.53x.

Ford's valuation is a key aspect of understanding its enterprise value. The company's stock traded at USD 9.14 per share at the end of 2019, resulting in a market capitalization of USD 36,874 million.

Over the previous five years, the stock price fell by 22.2%, or -4.91% per year on average. This decline in stock price is a notable trend in Ford's valuation.

The closing price of Ford's stock put it at a 12-month trailing EV/EBITDA of 7.27x as of 2019. This ratio provides insight into the company's valuation relative to its earnings.

Here's a summary of Ford's valuation metrics as of 2019:

The price to earnings ratio of 914x is significantly high, indicating that investors are willing to pay a premium for Ford's stock.

Ford's Enterprise Value is a significant metric that helps investors understand the company's market capitalization and debt. Its Enterprise Value is greater than Rivian Automotive, Inc. (15.07B).

Let's take a look at how Ford's Enterprise Value compares to its peers. Ford's Enterprise Value is less than Toyota Motor Corporation (67.38T), but greater than Lucid Group, Inc. (10.66B), XPeng Inc. (127.47B), NIO Inc. (71.67B), and Li Auto Inc. (128.29B).

Here's a summary of Ford's Enterprise Value compared to its peers:

Ford Motor Company's Enterprise Value is a key metric to consider when evaluating its performance and competitiveness.

Its Enterprise Value is greater than Rivian Automotive, Inc. with $15.07B, indicating that Ford is a larger company.

The Enterprise Value of Ford Motor Company is also less than Toyota Motor Corporation with $67.38T, showing that Toyota is significantly larger.

We can compare Ford's Enterprise Value to its peers in the table below:

Ford's Enterprise Value is greater than Lucid Group, Inc. with $10.66B, and greater than NIO Inc. with $71.67B, but less than Tesla, Inc. with $1.13T.

When analyzing a company's financial health, it's essential to consider its average enterprise value. Ford Motor Company's (F) current Enterprise Value is greater than its 3-year historical average.

This indicates that the company's current value is higher than it was over the past three years.

Comparing this to its 5-year historical average, we see that Ford's current Enterprise Value is less than its 5-year average. This suggests a decrease in value over the past five years.

On the other hand, Ford's current Enterprise Value is less than its 10-year historical average. This implies a significant drop in value over the past decade.

The EV/EBITDA ratio is a key metric for evaluating a company's value. It's calculated by dividing the enterprise value by earnings before interest, tax, depreciation, and amortization (EBITDA).

Ford Motor Co.'s current EV/EBITDA ratio is 9.87, which is lower than the sector average of 27.65. This suggests that the company is relatively undervalued compared to its peers in the Automobiles & Components sector.

In 2019, Ford Motor Company's stock traded at a 12-month trailing EV/EBITDA of 7.27x, indicating that the company's value was relatively low at that time. Over the previous five years, the stock price fell by 22.2%, resulting in a market capitalization of USD 36,874 million.

The EV/EBITDA ratio is a key indicator of a company's overall value. It's calculated by dividing the enterprise value (EV) by earnings before interest, tax, depreciation, and amortization (EBITDA).

In the case of Ford Motor Co., the EV/EBITDA ratio decreased from 25.07 in 2022 to 9.86 in 2024. This suggests that the company's value has decreased over the past two years.

To put this into perspective, let's look at the EV/EBITDA ratios of Ford Motor Co.'s competitors. In 2024, General Motors Co.'s EV/EBITDA ratio was 7.12, while Tesla Inc.'s was 85.66.

Here's a comparison of the EV/EBITDA ratios of Ford Motor Co. and its competitors over the past few years:

As you can see, Ford Motor Co.'s EV/EBITDA ratio is lower than its competitors, but still higher than the sector average. This suggests that the company's value is relatively low compared to its peers.

The EBITDA ratio is a key metric used to evaluate a company's valuation. It's calculated by dividing the company's enterprise value (EV) by its earnings before interest, tax, depreciation, and amortization (EBITDA).

Ford Motor Co.'s current EV/EBITDA ratio is 9.87, which is higher than the sector average of 27.65. This suggests that Ford is relatively overvalued compared to its peers in the Automobiles & Components sector.

To put this into perspective, let's look at some benchmarks. Ford's EV/EBITDA ratio is lower than that of General Motors Co. (7.03), but higher than that of Tesla Inc. (75.56). This means that Ford is relatively undervalued compared to General Motors, but overvalued compared to Tesla.

Here's a comparison of Ford's EV/EBITDA ratio with some benchmarks:

Ford's stock price has fluctuated over the years, with a 12-month trailing EV/EBITDA of 7.27x as of 2019. This is significantly lower than its current EV/EBITDA ratio, indicating that the company's valuation has increased over time.