General Stock Valuation

GE -  USA Stock  

USD 90.36  0.75  0.82%

What is the value of General Electric today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as General Electric, is its stock price multiplied by the total number of shares outstanding, calculating General Electric's enterprise value requires a different approach. It uses General Electric's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 1.7 B. The current year Enterprise Value is expected to grow to about 124.6 B.
General Electric retains a regular Real Value of $92.01 per share. The prevalent price of the firm is $90.36. At this time, the firm appears to be fairly valued. Our model calculates the value of General Electric from evaluating the firm fundamentals such as Current Valuation of 155.71 B, return on equity of 4.88 %, and Return On Asset of 0.45 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.

General Valuation 

 
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General Electric Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as General Electric's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 90.36
Share
Please note that General Electric's price fluctuation is very steady at this time. Calculation of the real value of General Electric is based on 3 months time horizon. Increasing General Electric's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for General Electric is useful when determining the fair value of the General stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of General Electric. Since General Electric is currently traded on the exchange, buyers and sellers on that exchange determine the market value of General Stock. However, General Electric's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
92.01
Real Value
93.90
Upside
Estimating the potential upside or downside of General Electric helps investors to forecast how General stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of General Electric more accurately as focusing exclusively on General Electric's fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
1.942.012.10
Details
Hype
Prediction
LowEstimated ValueHigh
89.2091.0992.98
Details
14 Analysts
Consensus
LowTarget PriceHigh
55.00117.55140.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use General Electric's intrinsic value based on its ongoing forecasts of General Electric's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against General Electric's closest peers. When choosing an evaluation method for General Electric, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

General Electric Investments

41.4 BillionShare

General Valuation Drivers Correlation

Many accounts on the financial statements of General Electric are highly interrelated and sometimes correlated. Consequently, when conducting General's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of General
Click cells to compare fundamentals

General Valuation Trend

Knowing General Electric's actual value is paramount for traders to make sound investment determinations. General Electric's real value is not only important for the investor to make better decisions but also for a more accurate overall view of General Electric's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both General Electric's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

General Market Cap

General Electric is one of the top stocks in market capitalization category among related companies. Market capitalization of Specialty Industrial Machinery industry is currently estimated at about 139.21 Billion. General Electric totals roughly 110.49 Billion in market capitalization claiming about 79% of equities listed under Specialty Industrial Machinery industry.
Capitalization  Valuation  Workforce  Total debt  Revenue

General Electric Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining General Electric's current stock value. Our valuation model uses many indicators to compare General Electric value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across General Electric competition to find correlations between indicators driving General Electric's intrinsic value. More Info.
General Electric is rated below average in price to sales category among related companies. It is rated # 2 in five year return category among related companies reporting about  1.62  of Five Year Return per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value General Electric by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for General Electric's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the General Electric's earnings, one of the primary drivers of an investment's value.

About General Electric Valuation

The equity valuation mechanism determines the current worth of General Electric on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of General Electric. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of General Electric based exclusively on its fundamental and basic technical indicators. By analyzing General Electric's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of General Electric's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of General Electric. We calculate exposure to General Electric's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to General Electric's related companies.
Last ReportedProjected for 2022
Gross Profit17.3 B24.2 B
Profit Margin 0.06  0.06 
General Electric Company operates as a high-tech industrial company worldwide. The company was founded in 1878 and is headquartered in Boston, Massachusetts. General Electric operates under Specialty Industrial Machinery classification in the United States and is traded on New York Stock Exchange. It employs 174000 people.

General Electric Quarterly Enterprise Value

154.16 BillionShare
General Electric's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether General Electric's value is low or high relative to the company's performance and growth projections. Determining the market value of General Electric can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of General Electric represents a small ownership stake in the entity. As a stockholder of General, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

General Electric Dividends Analysis For Valuation

The current year Dividend Yield is expected to grow to 0.003695, whereas Preferred Dividends Income Statement Impact is forecasted to decline to about 1.1 B. . General Electric Earning Before Interest and Taxes EBIT is projected to decrease significantly based on the last few years of reporting. The past year's Earning Before Interest and Taxes EBIT was at 7.65 Billion. The current year Earnings per Basic Share is expected to grow to 4.51, whereas Earnings before Tax are forecasted to decline to about 4.2 B.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact1.1 B1.1 B
Payment of Dividends and Other Cash Distributions-745.2 M-804 M
Dividend Yield 0.0036  0.003695 
Dividends per Basic Common Share 0.29  0.29 
There are various types of dividends General Electric can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of General shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from General Electric directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When General pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of General Electric by the value of the dividends paid out.

General Electric Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as General Electric does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.86
Revenue Growth-0.50%
Payout Ratio24.24%
Enterprise Value To Ebitda21.54
Enterprise Value To Revenue1.98

General Electric Current Valuation Indicators

Valuation refers to the process of determining the present value of General Electric and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value General we look at many different elements of the entity such as General's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as General Electric, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use General Electric's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes General Electric's worth.
Please check Risk vs Return Analysis. Note that the General Electric information on this page should be used as a complementary analysis to other General Electric's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Complementary Tools for General Stock analysis

When running General Electric price analysis, check to measure General Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy General Electric is operating at the current time. Most of General Electric's value examination focuses on studying past and present price action to predict the probability of General Electric's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move General Electric's price. Additionally, you may evaluate how the addition of General Electric to your portfolios can decrease your overall portfolio volatility.
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Is General Electric's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of General Electric. If investors know General will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about General Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of General Electric is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General Electric's value that differs from its market value or its book value, called intrinsic value, which is General Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because General Electric's market value can be influenced by many factors that don't directly affect General Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between General Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine General Electric value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.