General Electric Company (GE), Discounted Cash Flow Valuation

General Electric Company (GE) Company Profile

US | Industrials | Aerospace & Defense | NYSE
183.745 1.30 (0.71%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
196.78B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
45.8B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
6.55B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
1.1B
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
5.94
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
27.6
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.56%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
5.98M
Open The opening trade price over the trading day.
183.39
Previous Close The last closing price.
182.45
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.05
1 day delta The range between the high and low prices over the past day.
181.59-184.24
52 weeks The range between the high and low prices over the past 52 weeks.
146.78-214.21

Total Valuation

General Electric Company has a market cap or net worth of 196.78B. The enterprise value is 202.43B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
196.78B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
202.43B

Valuation Ratios

The trailing PE ratio is 30.58. General Electric Company's PEG ratio is 6.24.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
30.58
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
4.3
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
10.36
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
53.5
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
6.24

Enterprise Valuation

The stock's EV/EBITDA ratio is 20.79, with a EV/FCF ratio of 55.04.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
4.42
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
20.79
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
42.98
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
55.04

Financial Efficiency

Return on equity (ROE) is 30.25% and return on invested capital (ROIC) is 6.25%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
30.25%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
5.32%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
6.25%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.31
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
3.09

Margins

Trailing 12 months gross margin is 34.09%, with operating and profit margins of 14.37% and 14.31%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
34.09%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
14.37%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
16.37%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
14.31%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
21.26%

Income Statement

In the last 12 months, General Electric Company had revenue of 45.8B and earned 6.55B in profits. Earnings per share (EPS) was 5.94.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
45.8B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
15.61B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
6.58B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
7.5B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
6.55B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
9.74B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
8.5B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
5.94

Financial Position

The company has a trailing 12 months (ttm) current ratio of 1.09, with a ttm Debt / Equity ratio of 1.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
1.09
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
0.81
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
1
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.14

Dividends & Yields

This stock pays an annual dividend of 1.2, which amounts to a dividend yield of 0.65%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
1.2
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.65%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
3.27%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
1.87%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
71.77%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
15.38%

Balance Sheet

The company has 13.62B in cash and 19.27B in debt, giving a net cash position of -5.65B.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
13.62B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
19.27B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
-5.65B
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
19.34B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
17.9
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
3.24B

Cash Flow

In the last 12 months, operating cash flow of the company was 4.71B and capital expenditures -1.03B, giving a free cash flow of 3.68B.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
4.71B
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-1.03B
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
3.68B
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
3.37

General Electric Company News

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GE Aerospace's resilience is evident as its stock declined only 7.8% compared to the S&P 500's 13.7% drop, reflecting its long-term demand and strong service margins. Risks include potential supply chain disruptions and lower GDP growth, which could impact airplane demand and, subsequently, aero engines and services. EBITDA and free cash flow estimates have seen marginal reductions, leading to a revised price target from $239 to $206.25, driven by lower industry trading multiples....[read more]
Apr 10, 2025 - fool.com
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Apr 8, 2025 - businesswire.com
CTS Engines Selected by GE Aerospace as Offload Partner to Support CF6-80E1 Engine Maintenance
CORAL SPRINGS, Fla.--(BUSINESS WIRE)-- #Aviationnews--CTS Engines, a leading independent provider of mature engine MRO services, has been selected by GE Aerospace as an official offload partner to provide maintenance, repair, and overhaul support for the CF6-80E1 engine, which powers the Airbus A330. “Being chosen by GE Aerospace to support this critical program is a tremendous honor,” said William Kircher, CEO of CTS Engines. “It speaks directly to our team's deep expertise in legacy engine pla...[read more]
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My Worst Week Ever - And The 4 Dividend Stocks I'm Buying Now
Last week, I experienced my worst portfolio performance yet, dropping from a +7% return to -7%. Despite this, I'm still outperforming the market by 700 basis points. Though macroeconomic risks have increased, I believe the current volatility is temporary. I remain confident, with a sizable cash position, and continue to look for buying opportunities. In volatile markets, I avoid panic-selling and instead focus on acquiring quality stocks at discounted prices. This strategy aligns with my long-te...[read more]
Apr 6, 2025 - seekingalpha.com
GE Aerospace: A 20% Selloff Is Overdone (Rating Upgrade)
I am upgrading GE Aerospace to a buy rating due to a valuation reset after a 20% peak-to-trough plunge amid a global market rout. GE's Q4 results were strong, with EPS and revenue beating forecasts, and impressive free cash flow, driven by robust orders and upbeat guidance. Despite macroeconomic risks, GE's growth prospects remain solid, supported by a high number of EPS upgrades and a significant buyback program....[read more]
Apr 4, 2025 - cnbc.com
Tariffs will drive up the cost of airplanes, the United States' star export
Tariffs would drive up costs of key aerospace parts, making it more expensive for Boeing and even foreign companies with U.S. factories to produce planes. The tariffs are set to hit an aerospace supply chain still in recovery from the Covid-19 pandemic....[read more]
Apr 3, 2025 - globenewswire.com
GE Aerospace Industry Playbook 2025: Strategy Focus, Key Strategies & Plans, SWOT, Trends & Growth Opportunities, Market Outlook
Dublin, April 03, 2025 (GLOBE NEWSWIRE) -- The "GE Aerospace - Strategy Playbook - 2025 - Strategy Focus, Key Strategies & Plans, SWOT, Trends & Growth Opportunities, Market Outlook" company profile has been added to ResearchAndMarkets.com's offering. The 2025 edition of this Strategy Playbook report analyses the overall Strategy Focus and provides insights into the overall Strategy Focus and decrypts the key Strategies & Plans being pursued by GE Aerospace for the near to medium term horizon am...[read more]
Mar 29, 2025 - seekingalpha.com
GE: Strength In The Aviation Industry Is A Good Sign For The Company (Rating Upgrade)
GE Aerospace's strong performance and restructuring under CEO Larry Culp have positioned the company for long-term growth in the aviation industry. GE's impressive Q1 earnings, with EPS and revenue beating expectations, and a robust order book highlight its financial strength. The aviation industry's growth, driven by rising demand in emerging markets, supports GE's undervaluation, despite its high forward P/E ratio....[read more]

General Electric Company Details

Country US
City Evendale
Address 1 Neumann Way
Ticker Symbol GE
Exchange New York Stock Exchange
IPO Date Jan 2, 1962
CEO Mr. H. Lawrence Culp Jr.
Sector Industrials
Industry Aerospace & Defense
Employees 53K

General Electric Company Company Description

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.

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