GM, in my opinion, is firmly a hold. I believe the stock is about 6% undervalued and also comes with the benefit of spitting off a 5% annual dividend. Based on sensitivity considerations involving the company’s WACC and long-term growth rate, g (assumed at 2.00%), I have the company valued somewhere between $28.35-$36.86 per share: However, of my current holdings this is one of my lowest conviction ideas. Consequently, if something better comes up I may reduce this position or cut it entirely.