GE Vernova Valuation

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

GEV * (MX$6830) is trading below our estimate of [[fair value]] (MX$8046.09)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: GEV * (MX$6830) is trading below our estimate of fair value (MX$8046.09)

Significantly Below Fair Value: GEV * 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 GEV *?

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

The above table shows the Price to Earnings ratio for GEV *. This is calculated by dividing GEV *'s market cap by their current earnings.
What is GEV *'s PE Ratio?
PE Ratio	74.1x
Earnings	US$1.27b
Market Cap	US$93.72b

GEV * 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	2.6x
Enterprise Value/EBITDA	63.2x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does GEV *'s PE Ratio compare to its peers?

The above table shows the PE ratio for GEV * 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	24.1x
GCARSO A1 Grupo Carso. de	18.6x	15.6%	Mex$261.8b
ENR Siemens Energy	30.2x	23.5%	€35.7b
6503 Mitsubishi Electric	19.2x	10.4%	JP¥5.5t
600406 NARI Technology	28.3x	13.7%	CN¥211.4b
GEV * GE Vernova	74.1x	26.3%	Mex$93.7b

Price-To-Earnings vs Peers: GEV * is expensive based on its Price-To-Earnings Ratio (74.1x) compared to the peer average (24.1x).

Price to Earnings Ratio vs Industry

How does GEV *'s PE Ratio compare vs other companies in the Global Electrical Industry?

36 Companies	Price / Earnings	Estimated Growth	Market Cap

36 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GEV * is expensive based on its Price-To-Earnings Ratio (74.1x) compared to the Global Electrical industry average (26.6x).

Price to Earnings Ratio vs Fair Ratio

What is GEV *'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.

GEV * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	74.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GEV *'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 GEV * 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	Mex$6,830.00	Mex$6,312.65 -7.6%	15.1%	Mex$7,691.12	Mex$4,189.64	n/a	21
Nov ’25	Mex$6,140.00	Mex$6,054.13 -1.4%	13.5%	Mex$7,485.98	Mex$4,143.31	n/a	21
Oct ’25	Mex$5,009.98	Mex$4,712.77 -5.9%	16.3%	Mex$5,906.40	Mex$3,583.22	n/a	21
Sep ’25	Mex$3,877.00	Mex$3,923.16 +1.2%	9.5%	Mex$4,351.64	Mex$2,894.53	n/a	16
Aug ’25	Mex$3,240.97	Mex$3,643.45 +12.4%	11.3%	Mex$4,129.86	Mex$2,759.50	n/a	15
Jul ’25	Mex$3,058.50	Mex$3,184.47 +4.1%	10.5%	Mex$3,805.99	Mex$2,641.18	n/a	14
Jun ’25	Mex$2,966.50	Mex$2,876.46 -3.0%	9.7%	Mex$3,342.24	Mex$2,341.27	n/a	11
May ’25	Mex$2,706.50	Mex$2,748.37 +1.5%	7.0%	Mex$3,012.15	Mex$2,348.46	n/a	10

Analyst Forecast: Target price is lower than the current share price.

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