Here’s How A Stronger Performance In North America Can Impact Ford Motors
Ford Motor Company (NYSE: F) generates more than 60% of its revenues from North America. According to our estimates, the company will retain its market share of around 13.5% in the region over our forecast period and the average selling price of a Ford vehicle in North America will increase by 1% every year over our forecast period.
In 2017, Ford’s F-series performed strongly in North America reporting a more than 9% year on year increase in sales. With an increasing demand for trucks and SUVs in the region, it is likely the average selling price of Ford Motors’ vehicles in North America can increase at an accelerated pace – as its product portfolio shifts toward higher priced vehicles. Further, as the demand for SUV’s and trucks increases in the U.S., Ford can benefit from this trend since it is the leading player in this segment in the region. This can lead to an increase in the company’s market share in North America.
A better performance in North America can have a significant impact on Ford’s valuation. Click here to view our interactive model to analyze this impact.
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The below charts analyze the impact of a higher market share and and higher average selling price on Ford’s North American revenues:
North America is a key market for Ford Motors. As the company benefits from its leading position in the region and the trend of higher demand for SUVs and trucks in the region, a better performance in North America can lead to an upside in Ford Motors’ valuation.
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