GE Valuation

General Electric Co

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301.020

-0.12(-0.040%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 49.22 is considered Overvalued compared with the five-year average of 36.10. The fair price of General Electric Co (GE) is between 174.65 to 253.43 according to relative valuation methord. Compared to the current price of 301.02 USD , General Electric Co is Overvalued By 18.78%.

Relative Value

Fair Zone

174.65-253.43

Current Price：301.02

18.78%

Overvalued

49.22

Trailing

Forward

32.17

EV/EBITDA

General Electric Co. (GE) has a current EV/EBITDA of 32.17. The 5-year average EV/EBITDA is 18.45. The thresholds are as follows: Strongly Undervalued below 8.84, Undervalued between 8.84 and 13.65, Fairly Valued between 23.26 and 13.65, Overvalued between 23.26 and 28.06, and Strongly Overvalued above 28.06. The current Forward EV/EBITDA of 32.17 falls within the Strongly Overvalued range.

36.60

EV/EBIT

General Electric Co. (GE) has a current EV/EBIT of 36.60. The 5-year average EV/EBIT is 22.02. The thresholds are as follows: Strongly Undervalued below 11.55, Undervalued between 11.55 and 16.78, Fairly Valued between 27.25 and 16.78, Overvalued between 27.25 and 32.48, and Strongly Overvalued above 32.48. The current Forward EV/EBIT of 36.60 falls within the Strongly Overvalued range.

7.52

General Electric Co. (GE) has a current PS of 7.52. The 5-year average PS is 2.70. The thresholds are as follows: Strongly Undervalued below -1.09, Undervalued between -1.09 and 0.81, Fairly Valued between 4.60 and 0.81, Overvalued between 4.60 and 6.50, and Strongly Overvalued above 6.50. The current Forward PS of 7.52 falls within the Strongly Overvalued range.

37.40

P/OCF

General Electric Co. (GE) has a current P/OCF of 37.40. The 5-year average P/OCF is 25.44. The thresholds are as follows: Strongly Undervalued below 2.73, Undervalued between 2.73 and 14.09, Fairly Valued between 36.79 and 14.09, Overvalued between 36.79 and 48.15, and Strongly Overvalued above 48.15. The current Forward P/OCF of 37.40 falls within the Overvalued range.

42.59

P/FCF

General Electric Co. (GE) has a current P/FCF of 42.59. The 5-year average P/FCF is 30.57. The thresholds are as follows: Strongly Undervalued below 3.31, Undervalued between 3.31 and 16.94, Fairly Valued between 44.20 and 16.94, Overvalued between 44.20 and 57.83, and Strongly Overvalued above 57.83. The current Forward P/FCF of 42.59 falls within the Historic Trend Line -Fairly Valued range.

General Electric Co (GE) has a current Price-to-Book (P/B) ratio of 16.68. Compared to its 3-year average P/B ratio of 7.11 , the current P/B ratio is approximately 134.52% higher. Relative to its 5-year average P/B ratio of 5.36, the current P/B ratio is about 211.41% 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 3.11%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.05% , the current FCF yield is about -100.00% lower.

16.68

P/B

Median3y

7.11

Median5y

5.36

1.72

FCF Yield

Median3y

3.11

Median5y

3.05

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 21.21%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Honeywell International Inc

General Dynamics Corp

Loss

8.89%

86.79B

Performance Decomposition

Market capitalization of GE increased by 59.86% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.54 to 18.14.

The secondary factor is the Revenue Growth, contributed 21.21%to the performance.

Overall, the performance of GE in the past 1 year is driven by Margin Expansion. Which is more sustainable.

21.21%

9.09B → 11.02B

Revenue Growth

24.76%

14.54 → 18.14

Margin Expansion

13.89%

37.69 → 42.92

P/E Change

59.86%