General Electric Company

XTRA:GCP Stock Report

Market Cap: €188.9b

General Electric Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 GCP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GCP (€172) is trading below our estimate of fair value (€221.86)

Significantly Below Fair Value: GCP is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GCP. This is calculated by dividing GCP's market cap by their current earnings.
What is GCP's PE Ratio?
PE Ratio36.3x
EarningsUS$5.50b
Market CapUS$199.79b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GCP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.1x
RHM Rheinmetall
39x29.0%€26.7b
MTX MTU Aero Engines
23.7x11.2%€16.8b
SIE Siemens
17x5.9%€139.4b
OHB OHB
12.8x11.0%€888.7m
GCP General Electric
36.3x12.1%€199.8b

Price-To-Earnings vs Peers: GCP is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the peer average (23.1x).

Price to Earnings Ratio vs Industry

How does GCP's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GCP 36.3xIndustry Avg. 24.6xNo. of Companies8PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GCP is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the European Aerospace & Defense industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is GCP'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.

GCP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.3x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: GCP is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

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 GCP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€172.00
€198.42
+15.4%
6.3%€223.23€180.48n/a17
Nov ’25€160.00
€192.35
+20.2%
6.3%€216.39€174.95n/a17
Oct ’25€168.00
€180.13
+7.2%
6.5%€207.78€162.61n/a17
Sep ’25€156.00
€178.34
+14.3%
5.9%€196.21€155.14n/a16
Aug ’25€158.50
€180.81
+14.1%
6.1%€199.24€157.54n/a15
Jul ’25€146.50
€173.40
+18.4%
6.9%€196.50€155.53n/a16
Jun ’25€149.00
€170.83
+14.7%
5.8%€195.36€154.63n/a16
May ’25€152.50
€168.43
+10.4%
7.7%€197.24€138.35n/a17
Apr ’25€162.50
€159.45
-1.9%
13.6%€193.98€110.84n/a17
Mar ’25€146.50
€145.67
-0.6%
11.9%€170.72€110.74n/a17
Feb ’25€123.00
€132.45
+7.7%
8.4%€152.23€110.71n/a16
Jan ’25€116.00
€124.82
+7.6%
8.5%€141.73€105.16n/a16
Dec ’24€113.50
€123.97
+9.2%
7.7%€141.95€108.82n/a16
Nov ’24€100.50
€123.97
+23.3%
7.7%€141.95€108.82€160.0016
Oct ’24n/a
€121.74
0%
7.2%€134.22€104.71€168.0016
Sep ’24n/a
€117.81
0%
6.8%€129.42€101.68€156.0016
Aug ’24n/a
€112.65
0%
8.9%€127.32€90.58€158.5017
Jul ’24n/a
€100.81
0%
8.7%€114.53€82.46€146.5019
Jun ’24€96.20
€101.22
+5.2%
7.3%€113.22€84.21€149.0020
May ’24n/a
€97.10
0%
7.0%€108.86€83.37€152.5018
Apr ’24n/a
€91.44
0%
6.3%€104.17€82.97€162.5019
Mar ’24n/a
€82.61
0%
12.4%€94.52€47.26€146.5019
Feb ’24n/a
€78.86
0%
11.5%€89.23€46.00€123.0019
Jan ’24n/a
€88.33
0%
14.8%€115.09€54.72€116.0019
Dec ’23n/a
€86.08
0%
15.7%€115.90€55.10€113.5018
Nov ’23n/a
€89.61
0%
14.9%€123.49€58.71€100.5019

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

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