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Fiat worth more then GM

Looks like maybe it's just a bit of a distorted picture... :

Beanspants1 (from the link) said:
Everyone here is confused. Their market cap is $12.67 billion, not their market value.

Their market value (enterprise value) is $276 billion. The enterprise value is the price that Toyota would have to pay if they were to purchase it. If Toyota only had to pay market cap, then they would do that immediately and close the company, because GM has $15.13 billion in cash, so they could make $3 billion justlikethat. They could then sell all the assets off, and make approx $276 - $15 = $261 billion.

Market cap is nothing more than share price * number of shares, which is based on future growth prospects (and against alternative investment opportunties) as much as anything else.
Click to expand...
 
ESPNSTI said:
Looks like maybe it's just a bit of a distorted picture... :

Beanspants1 (from the link) said:
Everyone here is confused. Their market cap is $12.67 billion, not their market value.

Their market value (enterprise value) is $276 billion. The enterprise value is the price that Toyota would have to pay if they were to purchase it. If Toyota only had to pay market cap, then they would do that immediately and close the company, because GM has $15.13 billion in cash, so they could make $3 billion justlikethat. They could then sell all the assets off, and make approx $276 - $15 = $261 billion.

Market cap is nothing more than share price * number of shares, which is based on future growth prospects (and against alternative investment opportunties) as much as anything else.
Click to expand...
Click to expand...



shhhh your ruining my fun
 
Yeah.. they've had some bad decisions in the past few years, and some bad decisions trying to repair the previous problems left by the previous decisions :p.. but they're working on it.
 
ESPNSTI said:
Looks like maybe it's just a bit of a distorted picture... :

Beanspants1 (from the link) said:
Everyone here is confused. Their market cap is $12.67 billion, not their market value.

Their market value (enterprise value) is $276 billion. The enterprise value is the price that Toyota would have to pay if they were to purchase it. If Toyota only had to pay market cap, then they would do that immediately and close the company, because GM has $15.13 billion in cash, so they could make $3 billion justlikethat. They could then sell all the assets off, and make approx $276 - $15 = $261 billion.

Market cap is nothing more than share price * number of shares, which is based on future growth prospects (and against alternative investment opportunties) as much as anything else.
Click to expand...
Click to expand...

It's true that you couldnt just buy GM for $12.67bn, but you wouldnt need to pay the full price either. It's funny how FIAT who are almost bankrupt as well are worth more. A couple of year's ago there was the same sense of surprise, when Easyjet was worth more than Bristish Airways. Just remember that the stockmarkets do not always show the real value of a company.
 
GM's market cap has gone down to $10.77 billion. In like, a week.

I still can't afford to buy it, but who would want to anyway? :roll:

Edit: At this rate, in two weeks, the sum total of GM's stock will be worth less than that of Worldcom. Ouch.
 
Speaking of GM. They closed at 19.05 today. Getting lower and lower.
 
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