General Motors (GM) is back in the spotlight after Unifor members in Canada ratified new three year labor contracts that include more than US$1b in product and facility investments across key Ontario plants.

At a share price of US$87.22, General Motors has seen a 2.77% 1 day share price return and a 6.22% 90 day share price return. Its 1 year total shareholder return of 51.68% and 3 year total shareholder return of about 18x hint at strong longer term momentum.

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General Motors now pairs fresh labor certainty and new Canadian investment with a strong recent share price run. The business story is one thing; whether the current US$87.22 price still offers solid value is another.

Most Popular Narrative: 13% Undervalued

At a last close of $87.22 versus a narrative fair value of $100.04, analysts see upside in General Motors that hinges on more than just vehicle sales.

The growing monetization of software and services such as Super Cruise and OnStar, evidenced by $4 billion in deferred revenue and rapid subscriber growth, creates higher margin recurring revenue streams, supporting long term earnings expansion beyond traditional vehicle sales. GM is leveraging enhanced digitalization, AI, and over the air diagnostics to improve vehicle quality and manufacturing efficiency, which should drive down warranty costs, boost customer loyalty, and improve net margins over time.

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Analysts are not just plugging a single growth line into a spreadsheet. They are pairing modest revenue expectations with a sharp earnings recovery, richer margins, and a future P/E that implies General Motors edges closer to a software and services story rather than a pure automaker.

Result: Fair Value of $100.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, General Motors still faces meaningful risks, including sustained tariff and trade headwinds and heavier warranty costs on early EVs that could pressure margins and weaken the bullish narrative.

Find out about the key risks to this General Motors narrative.

Another View on General Motors Valuation

Analysts using earnings multiples see General Motors very differently. The stock trades on a P/E of 41.2x, compared with 22.9x for peers and 13.1x for the global auto industry, while the fair ratio sits at 26.2x. That premium raises a simple question: How comfortable are you paying up for this story?