General Electric Company operates as an infrastructure and technology company worldwide. More info.
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)||$10,783.20||$6,196.50||$7,632.00||$7,318.99||$7,018.81|
|Source||Analyst x5||Analyst x2||Analyst x1||Extrapolated @ (-4.1%)||Extrapolated @ (-4.1%)|
Discounted (@ 10.85%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $7,019 × (1 + 2.47%) ÷ (10.85% – 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 +
$80,705 = $29,416 + $51,289
Value = Total value / Shares Outstanding ($80,705 / 8,672)Discount to Share Price
Value per share:
Current discount (share price of $14.49): -55.7%
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 = 10.85% = 2.47% + (1.113 * 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 ($126,785,882,700).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.113 = 0.68 (1 + (1- 40%) (106.16%))
Levered Beta used in calculation = 1.113
John L. Flannery has been the Chief Executive Officer of General Electric Company since August 1, 2017 and its Chairman since October 2, 2017. He is GE’s eleventh CEO and the tenth Chairman. He served as the Chief Executive Officer and President of GE Healthcare Ltd. from October 2014 to June 12, 2017. He 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, He 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 spent over 20 years at GE Capital holding various leadership roles in the United States, Latin America, and Asia. He was a senior leader at GE Capital. Prior to his appointment as CEO, he led the turnaround of GE Healthcare. He 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. He 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:
See our latest analysis for General Electric Does GE produce enough cash relative to debt? … Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … Next Steps: At its current level of cash flow coverage, GE has room for improvement to better cushion for events which may require debt repayment.Simply Wall St - – Full article
General Electric Company (NYSE:GE) has returned to shareholders over the past 10 years, an average dividend yield of 4.00% annually. … See our latest analysis for General Electric 5 questions I ask before picking a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is its annual yield among the top 25% of dividend-paying companies? … NYSE:GE Historical Dividend Yield Jan 31st 18 How well does General Electric fit our criteria?Simply Wall St - – Full article
Margin Calculation for GE Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 7.58 Billion ÷ 121.13 Billion = 6.26% The past five years have seen General Electric's margin contract, due to net income declining at -14.12% on average, which was more than the average fall in revenue of -4.44%, meaning that the decrease in revenue has coincided with a smaller portion falling to the bottom line. … What does General Electric's margin expectation tell us about future earnings? … For General Electric in particular, future profit margin is expected to expand along with the Industrials industry margins, and at the same time, GE’s forecasted ROE of 12.74% exceeds that of the expected 10.02% ROE of the industry (note that this observation is also influenced by relative debt levels).Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for GE Price per share = $18.54 Earnings per share = $0.87 ∴ Price-Earnings Ratio = $18.54 ÷ $0.87 = 21.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with GE, then GE’s P/E would naturally be higher since investors would reward GE’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with GE, GE’s P/E would again be higher since investors would reward GE’s lower risk with a higher price as well.Simply Wall St - – Full article
See our latest analysis for General Electric How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … NYSE:GE Historical Dividend Yield Dec 22nd 17 How well does General Electric fit our criteria? … Relative to peers, General Electric generates a yield of 2.75%, which is high for industrial conglomerates stocks but still below the market's top dividend payers.Simply Wall St - – Full article
Check out our latest analysis for General Electric How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend-paying companies? … NYSE:GE Historical Dividend Yield Dec 20th 17 How well does General Electric fit our criteria? … Relative to peers, General Electric produces a yield of 2.70%, which is high for industrial conglomerates stocks but still below the market's top dividend payers.Simply Wall St - – Full article
Check out our latest analysis for General Electric What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of GE’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:GE Last Perf Nov 7th 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient GE is with its cost management.Simply Wall St - – Full article
Analysts covering General Electric Company (NYSE:GE) are predicting high double-digit earnings per share growth of 78.49% over the following three years. … This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 78.49% over the next few years. … However, GE’s earnings growth in the past couple of years has been negative at -11.13%.Simply Wall St - – Full article
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|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/16|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.