GM trades at low valuation despite strong software growth and buybacks, signaling undervaluation.

General Motors (GM) is currently valued at a low multiple of 6.5 times its FY26 adjusted earnings, reflecting market concerns about risks in China, electric vehicles (EV), and tariffs. However, GM's software and services segment, which generates $2.7 billion in revenue with high 70% profit margins, is undervalued and provides a stable growth and cash flow source. The company has also repurchased $6 billion in shares recently, showing management's confidence in the stock's undervaluation. Overall, GM's current market price appears to overlook its strong financial health and the potential of its high-margin software business, offering investors a margin of safety.