Value Analysis of Ford Motor Company (NYSE:F)

Value Analysis of Ford Motor Company (NYSE:F)

A new value analysis of Ford Motor Company (NYSE:F), a company listed on the New York Stock Exchange, has been added to our research pages. The Ford Motor Company is a global car manufacturer headquartered in Dearborn, Michigan.

The biggest challenge when analysing Ford was how to treat the Financial Services Sector, which is how describes its financing arm in its annual report.  The car manufacturing part of Ford is called the Automotive Sector.  The Automotive Sector creates by far the most revenue of the two sectors.

However, the profit generated, by the Financial Services Sector is significant even though the revenue is much lower than the Automotive Sector.  The Financial Service Sector provides a significant boost to the profit figures for Ford overall.  The improved profit is a benefit for owners of the common stock, but also brings with it the one significant risk for common stockholders; the debt that is on the balance sheet of the Financial Services Sector.

A value investor will want to make a judgement about the relative value of the risk and returns of the Financial Services Sector in Ford in order to decide whether the common stock can be considered as an investment as at around the current price.  Other statistics such as the dividend record, price to earnings and price to book value can be used to guide value investors.

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