General American Investors Company, Inc.

OVERVALUEDGAM · NYSE · Financial Services
GAM·NYSE·Financial Services
OVERVALUED
General American Investors Company, Inc.
48.0%downside
MARKET PRICE
$64.99
FAIR PRICE
$33.78
MARGIN
$31.21
UNDERVALUEDFAIROVERVALUED
P/E RATIO
7.9x
DIV. YIELD
9.87%
ROE
12.5%
MARKET CAP
$2B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

48.0%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$64.99

FAIR PRICE

$33.78

MARGIN

$31.21

UNDERVALUEDFAIROVERVALUED

P/E Ratio

7.9x

What is P/E? →

Div. Yield

9.87%

ROE

12.5%

Average

Market Cap

$2B

Small-cap

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FPI RATING

5.7/ 10

Low debt levels and strong profitability, but volatile earnings pattern and limited growth momentum.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$27.02CONSERVATIVE ENTRY
$33.78FAIR PRICE
$64.99MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$27.02

Fair price × 0.80

DISTANCE

58.4%

Price to entry level

At the current price of $64.99, GAM trades 58.4% above the conservative entry level of $27.02. This entry level represents a 20% margin of safety below the calculated fair price of $33.78 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate GAM's fair price

General American Investors Company, Inc.'s fair price of $33.78 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $64.99, GAM trades 48.0% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting GAM's risk profile.

RELATIVE · 30%

Comparing GAM's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for GAM, weighted by recency and analyst accuracy.

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Want to test your own assumptions? Use our free calculators to estimate GAM's fair value with your own inputs.

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FAQ

What is the fair price of GAM?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for General American Investors Company, Inc. is $33.78. At the current market price of $64.99, GAM trades 48.0% above its calculated fair value.

Is GAM overvalued or undervalued?+

General American Investors Company, Inc. is currently overvalued based on our valuation model. The stock trades at $64.99, which is 48.0% above the fair price of $33.78. The P/E ratio of 7.9x is a key metric in the valuation.

What is the margin of safety for GAM?+

With a 20% margin of safety applied to the fair price of $33.78, the conservative entry level for GAM is $27.02. At the current market price of $64.99, the stock trades 58.4% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is GAM's fair price updated?+

We update fair price calculations for GAM daily after market close. The current fair price of $33.78 incorporates the latest market data and sector multiples.

What factors affect GAM's fair price calculation?+

GAM's fair price of $33.78 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 7.9x, ROE of 12.5%, and dividend yield of 9.87%.

Is GAM a good buy right now?+

At $64.99, GAM trades 48.0% above our fair value estimate of $33.78. The stock is currently overvalued. ROE stands at 12.5% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does GAM pay dividends?+

GAM has a dividend yield of 9.87%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.