The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$13,410.50||$12,558.00||$6,816.00||$6,537.71||$6,270.79|
|Source||Analyst x2||Analyst x5||Analyst x2||Extrapolated @ (-4.08%)||Extrapolated @ (-4.08%)|
Discounted (@ 13.44%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $6,271 × (1 + 2.47%) ÷ (13.44% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$64,727 = $33,537 + $31,190
Value = Total value / Shares Outstanding ($64,727 / 8,672)Discount to Share Price
Value per share:
Current discount (share price of $17.83): -138.89%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 13.44% = 2.47% + (1.457 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($154,623,275,550).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.457 = 0.901 (1 + (1- 30%) (88.21%))
Levered Beta used in calculation = 1.457
Mr. John L. Flannery, Jr. has been the Chief Executive Officer of General Electric Company since August 1, 2017 and its Chairman since October 02, 2017. Mr. Flannery served as the Chief Executive Officer and President of GE Healthcare Ltd. from October 2014 to June 12, 2017. Mr. Flannery served as Senior Vice President of Corporate Business Development at General Electric Company (GE) since April 1, 2013. He served as the Chief Executive Officer and President of GE India Services Holding Limited from October 2009 to April 1, 2013 and also served as its senior vice-president of business development - US since April 01, 2014. He served as Senior Vice President of General Electric Capital Corporation. He served as the Chief Executive Officer and President of GE Capital Asia Pacific Ltd., since January 2009. He served as the Chief Executive Officer and President of GE Capital Services India Limited from October 2009 to April 1, 2013. He served as the Chief Executive Officer and President of GE Equity since February 2002. He served as the Chief Executive Officer and President of GE Commercial Finance of Asia Region since October 20, 2015. He has 27 years of experience across GE corporate, GGO and Capital. From August 1999 to February 2002, Mr. Flannery served as the Managing Director of Media and Consumer Group of GE Equity. From January 1997 to August 1999, he served as GE Equity's Managing Director for Latin America, where he started GE Equity's Latin American activities. From January 1997 to August 1999, he served as the President of GE Capital Argentina/Chile. From 1994 to December 1996, he served as Senior Vice President and Manager of Domestic Equity at GE Equity. He joined General Electric Company in 1987. He was a senior leader at GE Capital. Mr. Flannery served as a Director at eMotion, Inc., Pensare, Inc., IZ ON Media LLC, Convey Software, Inc. and GE Equity since July 1999. He served as a Director of EVINE Live Inc. from July 1999 to December 2003. He served as a Member of the Board of Directors at Proact Technologies Corp. Mr. Flannery served as a Director at Valuevision Media Inc. from July 1999 to December 2003. He earned B.S. in Finance and JD from Fairfield University in Fairfield, Connecticut in 1983 and MBA from The Wharton School of Business at the University of Pennsylvania in 1987.
Average tenure and age of the General Electric management team in years:
Average tenure and age of the General Electric board of directors in years:
General Electric Company operates as an infrastructure and technology company worldwide. Its Power segment offers gas and steam power systems; maintenance, service, and upgrade solutions; distributed power gas engines; water treatment, wastewater treatment, and process system solutions; and nuclear reactors, fuels, and support services. The company’s Renewable Energy segment provides wind turbine platforms, and hardware and software; onshore and offshore wind turbines; and solutions, products, and services to hydropower industry. Its Oil & Gas segment offers surface and subsea drilling and production systems, and equipment for floating production platforms; and compressors, turbines, turboexpanders, reactors, industrial power generation, and auxiliary equipment. The company’s Aviation segment designs and produces commercial and military aircraft engines, integrated digital components, and electric power and mechanical aircraft systems; and provides aftermarket services. Its Healthcare segment offers diagnostic imaging and clinical systems; products for drug discovery, biopharmaceutical manufacturing, and cellular technologies; and medical technologies, software, analytics, cloud solutions, and implementation services. The company’s Transportation segment provides freight and passenger locomotives, and rail and support advisory services; and parts, integrated software solutions and data analytics, software-enabled solutions, mining equipment and services, and marine diesel and stationary power diesel engines and motors, as well as overhaul, repair and upgrade, and wreck repair services. Its Energy Connections & Lighting segment offers industrial, grid, power conversion, automation and control, lighting, and current solutions. The company’s Capital segment provides industrial and energy financial services; and commercial aircraft leasing, financing, and consulting services. General Electric Company was founded in 1892 and is based in Boston, Massachusetts.
|Name:||General Electric Company|
General Electric Company
41 Farnsworth Street,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||GE||Common Stock||New York Stock Exchange||US||USD||02. Jan 1968|
|DB||GEC||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1968|
|XTRA||GEC||Common Stock||XETRA Trading Platform||DE||EUR||02. Jan 1968|
|LSE||GEC||Common Stock||London Stock Exchange||GB||EUR||02. Jan 1968|
|SWX||GE||Common Stock||SIX Swiss Exchange||CH||CHF||02. Jan 1968|
|ENXTPA||GNE||Common Stock||Euronext Paris||FR||EUR||02. Jan 1968|
|WBAG||GE||Common Stock||Wiener Boerse AG||AT||EUR||02. Jan 1968|
|SNSE||GE||Common Stock||Santiago Stock Exchange||CL||USD||02. Jan 1968|
|BVC||GE||Common Stock||Bolsa de Valores de Colombia||CO||COP||02. Jan 1968|
|BMV||GE *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||02. Jan 1968|
|BATS-CHIXE||GEZ||Common Stock||BATS 'Chi-X Europe'||GB||CHF||02. Jan 1968|
|BOVESPA||GEOO34||BDR EACH REPR 1 COM SH||Bolsa de Valores de Sao Paulo||BR||BRL||29. Sep 2011|
|BASE||GE||CEDEARS EACH REPR 1/5 COM USD0.06||Buenos Aires Stock Exchange||AR||ARS||12. Jan 2001|