Ford (NYSE:F) is currently demonstrating an impressive comeback after the company went nearly bankrupt in 2009. The company's transition inspired many investors and its stock price moved upwards quickly. Monday, Ford's share price was $12.53, giving the company a market cap of $47.84 billion. In this article, I will demonstrate why the company's current shares are fairly priced at the moment. In the last 10 years, Ford's stock price moved down from $14.99 to $12.53, a drop of 16.41%.
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Stock Price vs. Book Value
In the last 10 years, Ford's book value moved from $7.42 billion to $6.03, a drop of 18.78%. This is in line with the drop in the company's stock price. In this metric, Ford looks fairly priced.
Stock Price vs Revenue
In the last 10 years, Ford's revenues endured a sharp drop. 10 years ago, Ford had a revenue of $86.96 per share (TTM) whereas currently, the company has a revenue of $27.14 per share. This indicates a revenue drop of 68%. In this metric, the company looks overpriced.
Stock Price vs. EPS
10 years ago, the company was earning -$4.19 per share. Currently it earns $5.01 per share. The company saw an EPS growth of 219% in the last decade. In this metric, Ford looks undervalued.
Stock Price vs. Free Cash Flow
In the last decade, Ford's free cash flow moved from $13.99 billion to $6.98 billion. This is a drop of 50.13%. In this metric, the company looks overpriced.
Stock Price vs. Cash
10 years ago, the company had cash and equivalents holdings of $15.90 billion whereas today the company holds cash and equivalents of $16.53 billion. This is a growth of 3.35%. In this metric, the company looks undervalued.
Conclusion: In some metrics, the company looks overpriced and in others it looks underpriced. Considering the successful transition of the company, its ability to pay off its huge debt, and competency of its management, the company looks fairly priced. Long term investors would benefit from buying and holding this stock for a long term, however, there are better valuations out there.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.