Is Ally Financial (ALLY) Still Attractively Priced After Strong Three Year Share Price Gains?

Simply Wall St.04-24

If you are wondering whether Ally Financial's current share price reflects its true worth, you are not alone. This article is designed to help you size up that value question with clear numbers. At a ...

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At a ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/diversified-financials/nyse-ally/ally-financial/news/is-ally-financial-ally-still-attractively-priced-after-stron\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Ally Financial (ALLY) Still Attractively Priced After Strong Three Year Share Price Gains?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Ally Financial (ALLY) Still Attractively Priced After Strong Three Year Share Price Gains?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-24 02:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/diversified-financials/nyse-ally/ally-financial/news/is-ally-financial-ally-still-attractively-priced-after-stron><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Ally Financial's current share price reflects its true worth, you are not alone. This article is designed to help you size up that value question with clear numbers. At a ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/diversified-financials/nyse-ally/ally-financial/news/is-ally-financial-ally-still-attractively-priced-after-stron\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1201861249.SGD","symbol_name":"Natixis Harris Associates US Equity PA SGD-H","start_time":0,"source_url":"https://simplywall.st/stocks/us/diversified-financials/nyse-ally/ally-financial/news/is-ally-financial-ally-still-attractively-priced-after-stron","article_id":"2629573068","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7121000-choice1-main-header/1585186619635"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/diversified-financials/nyse-ally/ally-financial/news/is-ally-financial-ally-still-attractively-priced-after-stron","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2629573068","pubTimestamp":1776967694,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Ally Financial's current share price reflects its true worth, you are not alone. This article is designed to help you size up that value question with clear numbers.\nAt a last close of US$45.72, the stock has returned 8.2% over the past week, 16.6% over the past month, is roughly flat year to date at a 0.1% decline, and shows 47.2% and 96.5% returns over the past 1 and 3 years, with 6.2% over 5 years.\nRecent attention on Ally Financial has focused on its role as...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","BK4588":"碎股","BK4585":"ETF&股票定投概念","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","ALLY":"Ally Financial Inc.","BK4561":"索罗斯持仓","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","BK4166":"消费信贷","BK4559":"巴菲特持仓","LU0106831901.USD":"贝莱德世界金融基金A2","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H"},"translate_title":"在股价连续三年强劲上涨后，Ally Financial(ALLY)的定价是否仍然具有吸引力？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALLY":1.5},"content_text":"If you are wondering whether Ally Financial's current share price reflects its true worth, you are not alone. This article is designed to help you size up that value question with clear numbers. At a last close of US$45.72, the stock has returned 8.2% over the past week, 16.6% over the past month, is roughly flat year to date at a 0.1% decline, and shows 47.2% and 96.5% returns over the past 1 and 3 years, with 6.2% over 5 years. Recent attention on Ally Financial has focused on its role as a major US consumer finance player, including discussions around its auto lending exposure and digital banking footprint. These themes help frame how investors are thinking about the stock's risk profile and potential reward, which often feeds directly into valuation debates. On Simply Wall St's 6 point valuation checklist, Ally Financial scores 4 out of 6. The rest of this article will break down what different valuation methods say about the stock, before finishing with a broader way to think about value that goes beyond any single metric.  Ally Financial delivered 47.2% returns over the last year. See how this stacks up to the rest of the Consumer Finance industry. AdvertisementApproach 1: Ally Financial Excess Returns Analysis The Excess Returns model looks at how efficiently Ally Financial uses shareholders’ equity, then compares the return it generates to the return that investors are estimated to require. The gap between those two, the excess return, is then capitalised to estimate what the business could be worth per share today. For Ally Financial, the model uses a Book Value of about US$43.22 per share and a Stable EPS of roughly US$6.20 per share, based on weighted future Return on Equity estimates from 11 analysts. The estimated Cost of Equity is US$5.70 per share, which implies an Excess Return of about US$0.50 per share. That sits on top of an Average Return on Equity of 12.07% and a Stable Book Value assumption of around US$51.37 per share, sourced from seven analyst estimates. Putting these inputs together, the Excess Returns model points to an intrinsic value of about US$57.81 per share. Compared with the recent share price of US$45.72, this implies the stock is around 20.9% undervalued on this measure. Result: UNDERVALUED Our Excess Returns analysis suggests Ally Financial is undervalued by 20.9%. Track this in your watchlist or portfolio, or discover 61 more high quality undervalued stocks. ALLY Discounted Cash Flow as at Apr 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Ally Financial. Approach 2: Ally Financial Price vs Earnings For profitable companies like Ally Financial, the P/E ratio is a useful way to relate what you pay for the stock to the earnings the business is currently generating. It gives you a quick sense of how many dollars of price you are paying for each dollar of earnings. What counts as a “normal” P/E depends on what the market expects for future growth and how risky those earnings appear to be. Higher expected growth or lower perceived risk can support a higher P/E, while lower growth expectations or higher risk usually point to a lower P/E. Ally Financial currently trades on a P/E of 10.93x. That sits above the Consumer Finance industry average P/E of 9.53x and below a peer group average of 42.07x. Simply Wall St’s Fair Ratio for Ally Financial is 14.27x, which is an estimate of the P/E that could be reasonable given the company’s earnings growth profile, industry, profit margin, market size and risk factors. This Fair Ratio is more tailored than a simple comparison with peers or the broad industry because it adjusts for company specific characteristics rather than assuming one size fits all. Set against the current P/E of 10.93x, the Fair Ratio of 14.27x suggests the shares trade at a discount on this measure. Result: UNDERVALUED NYSE:ALLY P/E Ratio as at Apr 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies. Upgrade Your Decision Making: Choose your Ally Financial Narrative Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you attach a clear story about Ally Financial to the numbers by linking your view of its auto lending focus, digital banking model and margins to a specific forecast and Fair Value. You can then compare that Fair Value with the current price to inform your timing decisions. Narratives on the Community page update automatically when new news or earnings arrive. They can show, for example, how one investor might see Ally’s fair value near US$37 based on concerns around auto exposure and competition, while another might anchor on a higher figure around US$63 based on expectations for stronger growth and profitability. Do you think there's more to the story for Ally Financial? Head over to our Community to see what others are saying! NYSE:ALLY 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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