Yet based on one analyst's figures, GM may be worth $47 billion, more than Ford's stock market valuation of $36 billion.Looking at factors including potential earnings and cash flow, assets, and liabilities, JPMorgan Chase (JPM) analyst Eric Selle puts a $70 billion price tag on GM. That would equate to an eventual return of 47 cents on the dollar for holders of bonds issued by GM before its bankruptcy that will be converted to stock and warrants in new GM. Based on the price those bonds traded at in early July, GM's value would be $47 billion.
Why the higher price tag for GM? For starters, the company has a better balance sheet. Thanks to the government-sponsored bankruptcy, GM owes just $15.4 billion to its creditors and has $30 billion in cash. After paying down $4 billion of debt on June 30, Ford owes some $27 billion and its cash hoard is below $20 billion
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GM's bonds are going to be sold and the government will be repaid with a profit. And thousands of jobs were saved along the way.