GE Relative Valuation
GE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GE is overvalued; if below, it's undervalued.
Historical Valuation
General Electric Co (GE) is now in the Fair zone, suggesting that its current forward PE ratio of 43.01 is considered Fairly compared with the five-year average of 36.77. The fair price of General Electric Co (GE) is between 260.44 to 346.58 according to relative valuation methord.
Relative Value
Fair Zone
260.44-346.58
Current Price：288.49
Fair
43.35
PE
1Y
3Y
5Y
Trailing
Forward
27.45
EV/EBITDA
General Electric Co. (GE) has a current EV/EBITDA of 27.45. The 5-year average EV/EBITDA is 18.93. The thresholds are as follows: Strongly Undervalued below 8.46, Undervalued between 8.46 and 13.69, Fairly Valued between 24.17 and 13.69, Overvalued between 24.17 and 29.41, and Strongly Overvalued above 29.41. The current Forward EV/EBITDA of 27.45 falls within the Overvalued range.
31.83
EV/EBIT
General Electric Co. (GE) has a current EV/EBIT of 31.83. The 5-year average EV/EBIT is 22.48. The thresholds are as follows: Strongly Undervalued below 11.04, Undervalued between 11.04 and 16.76, Fairly Valued between 28.20 and 16.76, Overvalued between 28.20 and 33.91, and Strongly Overvalued above 33.91. The current Forward EV/EBIT of 31.83 falls within the Overvalued range.
6.69
PS
General Electric Co. (GE) has a current PS of 6.69. The 5-year average PS is 2.96. The thresholds are as follows: Strongly Undervalued below -1.13, Undervalued between -1.13 and 0.92, Fairly Valued between 5.01 and 0.92, Overvalued between 5.01 and 7.05, and Strongly Overvalued above 7.05. The current Forward PS of 6.69 falls within the Overvalued range.
36.38
P/OCF
General Electric Co. (GE) has a current P/OCF of 36.38. The 5-year average P/OCF is 26.23. The thresholds are as follows: Strongly Undervalued below 3.90, Undervalued between 3.90 and 15.07, Fairly Valued between 37.39 and 15.07, Overvalued between 37.39 and 48.56, and Strongly Overvalued above 48.56. The current Forward P/OCF of 36.38 falls within the Historic Trend Line -Fairly Valued range.
39.02
P/FCF
General Electric Co. (GE) has a current P/FCF of 39.02. The 5-year average P/FCF is 30.98. The thresholds are as follows: Strongly Undervalued below 6.11, Undervalued between 6.11 and 18.55, Fairly Valued between 43.41 and 18.55, Overvalued between 43.41 and 55.85, and Strongly Overvalued above 55.85. The current Forward P/FCF of 39.02 falls within the Historic Trend Line -Fairly Valued range.
General Electric Co (GE) has a current Price-to-Book (P/B) ratio of 16.18. Compared to its 3-year average P/B ratio of 8.11 , the current P/B ratio is approximately 99.55% higher. Relative to its 5-year average P/B ratio of 5.98, the current P/B ratio is about 170.46% higher. General Electric Co (GE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.90% , the current FCF yield is about -100.00% lower.
16.36
P/B
Median3y
8.11
Median5y
5.98
2.12
FCF Yield
Median3y
3.01
Median5y
2.90
Competitors Valuation Multiple
The average P/S ratio for GE's competitors is , providing a benchmark for relative valuation. General Electric Co Corp (GE) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 23.77%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GE increased by 74.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.36 to 38.95.
The secondary factor is the Revenue Growth, contributed 23.77%to the performance.
Overall, the performance of GE in the past 1 year is driven by P/E Change. Which is more unsustainable.
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