Ally Financial Inc (ALLY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Ally Financial Inc stock (ALLY) is currently trading at $39.23. Ally Financial Inc PE ratio is 16.68. Ally Financial Inc PS ratio (Price-to-Sales) is 1.66. Analyst consensus price target for ALLY is $52.48. WallStSmart rates ALLY as Buy.
- ALLY PE ratio analysis and historical PE chart
- ALLY PS ratio (Price-to-Sales) history and trend
- ALLY intrinsic value — DCF, Graham Number, EPV models
- ALLY stock price prediction 2025 2026 2027 2028 2029 2030
- ALLY fair value vs current price
- ALLY insider transactions and insider buying
- Is ALLY undervalued or overvalued?
- Ally Financial Inc financial analysis — revenue, earnings, cash flow
- ALLY Piotroski F-Score and Altman Z-Score
- ALLY analyst price target and Smart Rating
Ally Financial Inc
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ALLY Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Ally Financial Inc (ALLY)
ALLY trades at a significant discount to its Graham intrinsic value of $110.92, offering a 62% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Ally Financial Inc (ALLY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, operating margin. Concerns around return on equity. Overall metrics suggest strong investment potential with favorable risk/reward.
Ally Financial Inc (ALLY) Key Strengths (7)
Growing significantly faster than its price suggests
Trading below book value, meaning the market prices it less than net assets
Earnings per share surging 265.40% year-over-year
85.33% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong operational efficiency: $20 kept per $100 revenue
Paying $1.66 for every $1 of annual revenue
Supporting Valuation Data
Ally Financial Inc (ALLY) Areas to Watch (3)
Low profitability relative to shareholder equity
Solid revenue growth at 12.00% per year
Decent profitability, keeps $12 per $100 revenue
Ally Financial Inc (ALLY) Detailed Analysis Report
Overall Assessment
This company scores 80/100 in our Smart Analysis, earning a B+ grade. Out of 10 metrics analyzed, 7 register as strengths (avg 9.3/10) while 3 fall into concern territory (avg 5.0/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Book, EPS Growth. Valuation metrics including PEG Ratio (0.42), Price/Sales (1.66), Price/Book (0.90) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 20.40%. Growth metrics are encouraging with EPS Growth at 265.40%.
The Bear Case
The primary concerns are Return on Equity, Revenue Growth, Profit Margin. Growth concerns include Revenue Growth at 12.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 5.80%, Profit Margin at 11.60%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 5.80% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 12.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of PEG Ratio and Price/Book makes a compelling case at current levels. The key risk is Return on Equity, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B+ grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ALLY Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ALLY's Price-to-Sales ratio of 1.66x trades 78% above its historical average of 0.93x (91th percentile), historically expensive. The current valuation is 25% below its historical high of 2.21x set in May 2021, and 336% above its historical low of 0.38x in Apr 2020. Over the past 12 months, the PS ratio has expanded from ~0.7x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Ally Financial Inc (ALLY) · FINANCIAL SERVICES › CREDIT SERVICES
The Big Picture
Ally Financial Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 7.4B with 12% growth year-over-year. Profit margins of 11.6% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 580.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Free cash flow is -239M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Margin expansion: can Ally Financial Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 3.1%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor CREDIT SERVICES industry trends, competitive moves, and regulatory changes that could impact Ally Financial Inc.
Bottom Line
Ally Financial Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Ally Financial Inc(ALLY)
NYSE
FINANCIAL SERVICES
CREDIT SERVICES
USA
Ally Financial Inc., a banking holding company, offers a variety of digital financial products and services to consumers, business and corporate clients primarily in the United States and Canada. The company is headquartered in Detroit, Michigan.