General Electric Valuation

GE Stock  USD 180.12  6.57  3.79%   
At this time, the firm appears to be overvalued. General Electric retains a regular Real Value of $161.21 per share. The prevalent price of the firm is $180.12. Our model calculates the value of General Electric from evaluating the firm fundamentals such as Current Valuation of 190 B, return on equity of 0.28, and Return On Asset of 0.0206 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Price Book
6.9303
Enterprise Value
190 B
Enterprise Value Ebitda
14.1919
Price Sales
2.7921
Forward PE
37.037
Overvalued
Today
180.12
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 12 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.
Historical Market  180.12 Real  161.21 Target  125.83 Hype  182.13 Naive  178.7
The real value of General Stock, also known as its intrinsic value, is the underlying worth of General Electric Company, which is reflected in its stock price. It is based on General Electric's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of General Electric's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence General Electric's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
159.99
Downside
161.21
Real Value
198.13
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 (0)
LowProjectedHigh
0.600.650.71
Details
Hype
Prediction
LowEstimatedHigh
162.11182.13183.35
Details
Potential
Annual Dividend
LowForecastedHigh
0.030.030.03
Details
18 Analysts
Consensus
LowTarget PriceHigh
114.51125.83139.67
Details

General Electric Investments

3.12 Billion

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 beta category among related companies. It is rated # 3 in price to sales category among related companies fabricating about  2.29  of Price To Sales per Beta. As of March 28, 2024, Price To Sales Ratio is expected to decline to 1.10. 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.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates General Electric's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in General Electric and how it compares across the competition.

About General Electric Valuation

The stock 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 2024
Gross Profit17.6 B16.7 B
Pretax Profit Margin 0.15  0.11 
Operating Profit Margin 0.09  0.09 
Net Profit Margin 0.14  0.08 
Gross Profit Margin 0.26  0.46 

General Electric Quarterly Retained Earnings

86.53 Billion

8 Steps to conduct General Electric's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates General Electric's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct General Electric's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain General Electric's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine General Electric's revenue streams: Identify General Electric's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research General Electric's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish General Electric's growth potential: Evaluate General Electric's management, business model, and growth potential.
  • Determine General Electric's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate General Electric's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
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

Please note that General Electric has scaled down on payment of dividends at this time. The current year's Retained Earnings Total Equity is expected to grow to about 113.6 B, whereas Retained Earnings are forecasted to decline to about 85.6 B.
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 Growth Indicators

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.
Common Stock Shares Outstanding1.1 B
Quarterly Earnings Growth Y O Y-0.232
Forward Price Earnings37.037

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. General Electric's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final General Electric's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
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.
When determining whether General Electric is a strong investment it is important to analyze General Electric's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact General Electric's future performance. For an informed investment choice regarding General Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in General Electric. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
For information on how to trade General Stock refer to our How to Trade General Stock guide.
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 the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Complementary Tools for General Stock analysis

When running General Electric's 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 the 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.
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Share Portfolio
Track or share privately all of your investments from the convenience of any device
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
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.
Quarterly Earnings Growth
(0.23)
Dividend Share
0.32
Earnings Share
7.98
Revenue Per Share
62.4
Quarterly Revenue Growth
0.154
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 if General Electric is a good investment 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.