I did a financial modeling project this semester, and using really conservative assumptions, i got a $20 per share value for Ford. When compared to others in the industry, Ford has better margins, 3 out of the top 10 vehicles in the USA are Fords, yet it still trades at a P/E slightly over 2. I invested on monday and have made about 6% this week. Anyone have any idea why Ford shares are so cheap? Any idea why it wont be a good investment for the next 6-9 months? Is this a great value investment or a value trap?

You could start by having the right EPS (or P/E) figure.

His P/E is right, it is around 2. The forward P/E is 6.13 though.

ur right if u don't adjust for 1-time items.

2012E ~ 1.50 EPS
2011 ~ 1.51 EPS

not even close to 2x.

You might not know what these special items are but he should DEFINITELY know if he was diligent at all

Ok, fine, i was using eps of 4.75, not using this one time adjustment. Ford has sold unprofitable companies such as Aston Martin, and Jaguar, and stopped production of Mercury. Also, in 07 and 08, they were profitable, then special taxes made them very unprofitable, and they received a special one time item which made them profitable last year which I am aware of. Please explain to me how even if revenue only grows at 1% for the next 5 years(which i believe is really conservative) the stock has a DCF value of $15 per share, also, it has a cheaper EV/REV, EV/EBITDA, and better margins than any other company in the industry. (I am in Cancun and am drinking heavily, if any of these numbers are wrong let me know)