{"id":17,"date":"2010-01-28T12:43:45","date_gmt":"2010-01-28T17:43:45","guid":{"rendered":"http:\/\/www.credittrends.com\/blog\/?p=17"},"modified":"2010-01-28T13:41:28","modified_gmt":"2010-01-28T18:41:28","slug":"ford-motor-company-cost-of-capital-improves","status":"publish","type":"post","link":"https:\/\/www.credittrends.com\/blog\/2010\/01\/28\/ford-motor-company-cost-of-capital-improves\/","title":{"rendered":"Ford Motor Company &#8211; Cost of Capital Improves, but &#8230;"},"content":{"rendered":"<p>Investors should not get carried away with Ford just yet. Despite market improvement, its cost of capital is still some 70% higher than the median S&amp;P 500 company, reflecting its credit and financial health are still tenuous.<\/p>\n<p>The cost of capital, which is a function of the risk free rate and the firm\u2019s credit health, suggests Ford stock should only be considered by speculative investors, willing to lose a substantial portion of their investment. Ford will be facing strong competition from China and possibly a resurgent GM over the years ahead, and with their long-term free cash flows in doubt, and reliance on debt ( $ $4 bil cash covenant requirement), Ford\u2019s stock appears fully valued.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-18 lazyload\" title=\"Ford - Cost of Capital\" data-src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/uploads\/2010\/01\/Ford-Cost-of-Capital-300x231.jpg\" alt=\"Ford - Cost of Capital\" width=\"300\" height=\"231\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/231;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-18\" title=\"Ford - Cost of Capital\" src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/uploads\/2010\/01\/Ford-Cost-of-Capital-300x231.jpg\" alt=\"Ford - Cost of Capital\" width=\"300\" height=\"231\" \/><\/noscript><\/p>\n<p class=\"facebook\"><a href=\"http:\/\/www.facebook.com\/share.php?u=https:\/\/www.credittrends.com\/blog\/2010\/01\/28\/ford-motor-company-cost-of-capital-improves\/\" target=\"_blank\" title=\"Share on Facebook\">Share on Facebook<\/a><\/p><div class=\"tweetthis\" style=\"text-align:left;\"><p> <a class=\"tt\" href=\"http:\/\/twitter.com\/home\/?status=Ford+Motor+Company+%E2%80%93+Cost+of+Capital+Improves%2C+but+%E2%80%A6+https%3A%2F%2Fwww.credittrends.com%2Fblog%2F%3Fp%3D17\" title=\"Post to Twitter\"><img decoding=\"async\" class=\"nothumb lazyload\" data-src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/plugins\/tweet-this\/icons\/en\/twitter\/tt-twitter.png\" alt=\"Post to Twitter\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" \/><noscript><img decoding=\"async\" class=\"nothumb\" src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/plugins\/tweet-this\/icons\/en\/twitter\/tt-twitter.png\" alt=\"Post to Twitter\" \/><\/noscript><\/a> <a class=\"tt\" href=\"http:\/\/twitter.com\/home\/?status=Ford+Motor+Company+%E2%80%93+Cost+of+Capital+Improves%2C+but+%E2%80%A6+https%3A%2F%2Fwww.credittrends.com%2Fblog%2F%3Fp%3D17\" title=\"Post to Twitter\">Tweet This Post<\/a><\/p><\/div><!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Investors should not get carried away with Ford just yet. Despite market improvement, its cost of capital is still some 70% higher than the median S&amp;P 500 company, reflecting its credit and financial health are still tenuous. The cost of capital, which is a function of the risk free rate and the firm\u2019s credit health, [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n<p class=\"facebook\"><a href=\"http:\/\/www.facebook.com\/share.php?u=https:\/\/www.credittrends.com\/blog\/2010\/01\/28\/ford-motor-company-cost-of-capital-improves\/\" target=\"_blank\" title=\"Share on Facebook\">Share on Facebook<\/a><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[7,4],"tags":[6,5],"class_list":["post-17","post","type-post","status-publish","format-standard","hentry","category-free-cash-flow-book","category-market-observations","tag-cost-of-capital","tag-ford"],"_links":{"self":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/17","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/comments?post=17"}],"version-history":[{"count":0,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/17\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/media?parent=17"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/categories?post=17"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/tags?post=17"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}