Ally Financial Inc. (ALLY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-354.7%

-$98.72

vs $38.76 price

Levered DCF

-$23.98

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-0.62

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	18.95×	19.79×	12.47×	4.83×	5.74×	12.34×	7.01×	7.63×
P/B	0.91×	0.79×	0.77×	0.6×	1.01×	0.91×	0.83×	0.73×
P/S	1.16×	0.68×	0.66×	0.64×	1.61×	1.25×	1.04×	0.92×
EV / EBITDA	10.54×	9.82×	10.58×	6.12×	5.75×	7.46×	13.69×	18.18×
Gross margin	52.0%	41.1%	44.5%	64.8%	79.8%	56.3%	54.7%	56.3%
Operating margin	8.6%	5.1%	6.9%	19.4%	36.0%	13.2%	17.0%	15.6%
Net margin	7.0%	4.1%	6.0%	14.2%	28.6%	10.1%	14.8%	12.1%
Current ratio	0.9×	0.2×	0.17×	0.21×	0.28×	0.33×	0.26×	0.19×
Debt / equity	1.4×	1.38×	1.53×	1.58×	1.01×	1.65×	2.76×	4.1×
Interest coverage	0.16×	0.11×	0.16×	0.82×	2.01×	0.44×	0.46×	0.45×
Dividend yield	3.5%	4.4%	4.5%	6.4%	2.2%	2.2%	2.3%	2.5%
Payout ratio	57.4%	72.2%	49.9%	28.8%	12.5%	26.6%	15.9%	19.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	5.5%	4.8%	7.0%	13.3%	17.9%	7.4%	11.9%	9.5%
Return on invested capital	2.3%	1.7%	2.4%	4.4%	7.7%	2.5%	2.9%	1.8%
Return on assets	0.4%	0.3%	0.5%	0.9%	1.7%	0.6%	0.9%	0.7%
Free cash flow yield	-4.6%	9.7%	17.0%	35.1%	-6.2%	-4.3%	0.2%	4.6%
Earnings yield	6.1%	6.0%	9.0%	22.1%	17.7%	8.1%	14.3%	13.1%
Enterprise value	$25.8B	$20B	$24.6B	$22.5B	$29.4B	$22.1B	$48.2B	$59.5B
Net debt / EBITDA	4.79×	4.39×	6.02×	4.01×	2.37×	2.94×	10.28×	15.23×
Cash conversion cycle (days)	-5,376	-25	-31	-44	-110	-49	-60	-55