Is Ford Stock Overvalued or Undervalued?

The logo of U.S. carmaker Ford can be seen at the company's booth at the International Motor Show (IAA) Germany, in Munich, southern Germany, on Sept. 8, 2021. Christof Stache/AFP via Getty Images

Ford Motor Company shares have outperformed the S&P 500 in the last year, generating a 12-month total return of 174.4 percent.

But after a huge run, investors may be wondering if there’s any value left in Ford stock.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value. For comparison, the S&P 500’s PE is at about 30, nearly double its long-term average of 15.9.