GE HealthCare Technologies Valuation

Q: What is the Fair Price of GEHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GEHC (COP364220) is trading below our estimate of [[fair value]] (COP429426.18)

Is GEHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GEHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GEHC (COP364220) is trading below our estimate of fair value (COP429426.18)

Significantly Below Fair Value: GEHC is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GEHC?

Key metric: As GEHC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GEHC. This is calculated by dividing GEHC's market cap by their current earnings.
What is GEHC's PE Ratio?
PE Ratio	22.5x
Earnings	US$1.68b
Market Cap	US$37.66b

GEHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	12.6x
PEG Ratio	2x

Price to Earnings Ratio vs Peers

How does GEHC's PE Ratio compare to its peers?

The above table shows the PE ratio for GEHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31x
EW Edwards Lifesciences	26.5x	1.9%	US$41.6b
IDXX IDEXX Laboratories	39.4x	9.8%	US$34.2b
RMD ResMed	32.1x	11.1%	US$35.8b
300760 Shenzhen Mindray Bio-Medical Electronics	25.7x	14.7%	CN¥318.4b
GEHC GE HealthCare Technologies	22.5x	11.4%	Col$37.7b

Price-To-Earnings vs Peers: GEHC is good value based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (31x).

Price to Earnings Ratio vs Industry

How does GEHC's PE Ratio compare vs other companies in the Global Medical Equipment Industry?

11 Companies	Price / Earnings	Estimated Growth	Market Cap

11 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GEHC is good value based on its Price-To-Earnings Ratio (22.5x) compared to the Global Medical Equipment industry average (27.7x).

Price to Earnings Ratio vs Fair Ratio

What is GEHC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GEHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GEHC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GEHC forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	Col$364,220.00	Col$428,242.06 +17.6%	8.3%	Col$485,804.00	Col$326,813.60	n/a	19
Nov ’25	Col$381,680.00	Col$426,399.82 +11.7%	7.8%	Col$486,354.00	Col$327,183.60	n/a	19
Oct ’25	Col$383,060.00	Col$403,179.75 +5.3%	7.7%	Col$442,102.50	Col$311,577.00	n/a	19
Sep ’25	Col$353,560.00	Col$395,069.82 +11.7%	6.2%	Col$438,742.50	Col$350,994.00	n/a	17
Aug ’25	Col$347,240.00	Col$384,771.69 +10.8%	6.2%	Col$428,851.50	Col$343,081.20	n/a	16
Jul ’25	n/a	Col$357,983.91 0%	6.7%	Col$405,321.00	Col$331,977.20	n/a	14
Jun ’25	n/a	Col$357,983.91 0%	6.7%	Col$405,321.00	Col$331,977.20	n/a	14
May ’25	n/a	Col$366,780.94 0%	7.0%	Col$410,970.00	Col$336,604.00	n/a	13
Apr ’25	n/a	Col$360,801.36 0%	5.7%	Col$393,001.83	Col$321,522.00	n/a	13
Mar ’25	n/a	Col$357,491.19 0%	5.2%	Col$392,350.00	Col$321,727.00	n/a	13
Feb ’25	n/a	Col$325,518.88 0%	9.5%	Col$376,457.00	Col$256,146.00	n/a	12
Jan ’25	n/a	Col$321,004.55 0%	10.4%	Col$377,233.00	Col$256,674.00	n/a	12
Dec ’24	n/a	Col$334,393.09 0%	9.8%	Col$389,173.70	Col$264,798.60	n/a	13
Nov ’24	n/a	Col$352,192.52 0%	7.9%	Col$399,174.40	Col$296,294.40	Col$381,680.00	12
Oct ’24	n/a	Col$348,641.68 0%	6.8%	Col$387,090.00	Col$304,980.00	Col$383,060.00	12
Sep ’24	n/a	Col$370,068.87 0%	6.6%	Col$407,899.80	Col$321,375.60	Col$353,560.00	11
Aug ’24	n/a	Col$352,033.96 0%	6.9%	Col$388,099.80	Col$305,775.60	Col$347,240.00	10
Jul ’24	n/a	Col$371,833.60 0%	6.9%	Col$404,247.50	Col$316,730.00	n/a	9
Jun ’24	n/a	Col$384,088.29 0%	10.8%	Col$425,442.00	Col$293,862.00	n/a	7
May ’24	n/a	Col$401,630.40 0%	11.8%	Col$441,607.50	Col$311,449.50	n/a	5
Apr ’24	n/a	Col$393,141.65 0%	13.2%	Col$429,750.00	Col$319,925.00	n/a	3
Mar ’24	n/a	Col$381,321.60 0%	14.6%	Col$437,184.00	Col$325,459.20	n/a	2

Analyst Forecast: Target price is less than 20% higher than the current share price.