Should Ford Be Considered a Cheap Stock? Should You Invest in It?

Something that characterizes the stock market is how unpredictable it is. Sometimes, it might feel unfair, and it just feels wrong for others.

Such is the case whenever a stock has some clear value to it. Yet it fails to be priced in a way that sounds accurate. This can happen even with major, well-established stocks, believe it or not.

Luckily, this is not always a bad thing. If you play your cards right, this can be an opportunity for you to acquire said stock at a bargain price. Maybe things will change after a while, and its price will be closer to its actual value.

This article will determine whether this applies to a popular stock: the Ford Motor Company (NYSE:F).

Ford Is About to Enter a Second Life

As the demand for electric vehicles increases, internal combustion vehicles have decreased. For the companies focused on the latter, this has resulted in a subsequent decrease in popularity. Such was the case with Ford a while ago.

However, we’re now entering a new phase in the Ford company. It has also decided to join the electric vehicle market, and a decision immediately brought investors’ attention around the globe.

How strong was this effect? Well, they’ve soared in value by 147% over the last 12 months.

For reference, Rivian is a leading company in this market, and its market cap saw the likes of $66 billion in November 2021. Around the same period, Ford saw a market cap of $85 billion. Pretty neat, huh?

Moreover, Ford generated up to $37.5 billion in revenue, and it’s price-to-sales multiple is currently at 0.64.

When compared to Ford’s highest point, it’s a so-so amount. But it clearly shows that it’s moving in the right direction. Its electric vehicle business is surging, and it’s bringing along its already-built reputation.

Analysts are experiencing Ford’s electric vehicle sales to reach the likes of 473,000 by 2025. So yeah, Ford stock is cheap, but you can take advantage of it.