Citation:

Fahmi Haidar Zaki, Raden Aswin Rahadi. "Automobile Industry Market Competition In USA: Stock Valuation Analysis of Ford Motor Company (NYSE: F) Amidst Consistent Growth of Electric Automobile Sales in 2020 – 2024" International Research Journal of Economics and Management Studies, Vol. 4, No. 7, pp. 262-272, 2025.

Abstract:

This study discusses the analysis of financial performance of Ford Motor Company amidst consistent growth of electric automobile sales in 2020 – 2024. This study employs a business performance analysis based on SWOT analysis, ESG rating and performance, and the PESTLE analysis framework. Another analysis was conducted using financial performance analysis, such as growth on stock price, growth on market capitalisation, growth on revenue and net profit, growth on net-working capital, and growth on asset and equity. Additional analysis was conducted using financial ratio analysis, such as liquidity ratio, profitability ratio, solvency ratio, and market value ratio. This study is primarily aimed at assessing company stock valuation during the period of transition to a net-zero environment and identifying the business and financial risks faced by Ford Motor Company during the net-zero transition process. The results of this study indicate whether Ford Motor Company is exposed to the risk of ESG-related sanctions that could impact its stock and financial performance in the future. Although the Company has medium performance over ESG value, and the management has a commitment to progressing the ESG value implementation, the profitability and core performance should be prioritised during the process of stock screening. Although the Company's profitability and performance should be the primary focus of the stock curation process, it should also be considered during decision-making, considering the risks associated with investing in companies with poor performance. In conclusion, this study highlights the implementation of ESG and the potential risks to business operations.

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Keywords:

Stocks Valuation, Net-Zero Transition, ESG Implementation.