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Ally Financial Inc.

ALLY Financial Credit Services

Ally Financial Inc.’s revenue for fiscal 2025 (year ended December 2025) was $15.3 billion, down 6.89% from fiscal 2024.

Revenue
+4.53%
EPS
+10.9%
Free cash flow
+32.7%
Total debt
+12.1%

Quarter to September 2026, against a year earlier

38.74 0.09 −0.23%
Market cap
$11.7B
P/E
8.8×
Fwd P/E
8.1×
Dividend yield
3.21%
F-score
6/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Ally Financial Inc. (ALLY) valuation and DCF model

What the price implies · reverse DCF

At $38.74 the price implies 11.8% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew −13.8% a year over the last ten years, 9.6% over the last five. The price asks for 25.5 points a year more than its ten-year rate. Return on equity averaged 9.7% over ten years; the price implies 7.6% for good.

In December 2017 the price assumed 24.3% a year; Ally Financial Inc. went on to grow the dividend a share −1.1% a year to FY2025.

Price implies
11.8%
Last 5 years, reported
9.6%
Last 10 years, reported
−13.8%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
11.8% a year for ten years
$38.74
today’s price
Its base case
−10.0% a year for five years, then −6.0%
$8.62
77.7% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Ally Financial Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 11.8% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Ally Financial Inc.’s own cost of capital: risk-free 4.3% + beta 1.16 × equity premium 4.5% = 9.5% cost of equity; weighted, 9.5%.

Use 9.5%
Base case value per share $8.62 ten years discounted, and what follows
Current price $38.74 market price per share
Below today’s price 77.7% downside at the base case’s assumptions

How we got there$5.10 10 years of dividends+$3.52 terminal value=$8.62 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Credit Services).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 8.80× 12.58× 11.01× 20% below 8.96× 2% below
P/FCF 2.39× 2.44× 2.86× 16% below 2.55× 6% below
P/B 0.91× 0.92× 0.92× 1% below 1.23× 26% below
EV/Sales — 1.64× 2.96× — 3.90× —
P/E P/FCF P/B EV/Sales
6.43×10.28×14.13×17.97×10Y avg 11.01×2017201820192020202120222023202420252026

ALLY trades at 8.80× P/E, against a 10-year average of 11.01× (range 4.90×–18.95×). That is cheaper than 56% of the last 9 year-end readings; re-rating to the average implies $48.47 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.