A Fresh Look at General Electric’s Valuation Following New Aerospace Alliance With BETA Technologies

If you have been watching General Electric (GE) lately, you already know the headlines are buzzing with news from its Aerospace division. GE Aerospace just announced a strategic alliance with BETA Technologies, joining forces to push the boundaries of hybrid electric aviation. This deal not only sets the stage for developing a cutting-edge hybrid electric turbogenerator but also includes a $300 million equity investment from GE, along with board representation. For investors, it is a bold step that signals GE's focus on capturing a bigger piece of the future of flight.

This partnership builds on a year where GE's stock has moved up over 63% and delivered strong momentum, particularly in recent months. Prior progress in hybrid electric propulsion technologies and a string of technical milestones have reinforced the company’s growth narrative. With the additional capacity for innovation that comes from this collaboration, GE seems eager to strengthen its competitive edge while positioning itself as a leader in sustainable aviation.

After such a rally and a series of announcements, the real question is whether GE is still a bargain at these levels or if the market is already pricing in the next phase of growth.

Most Popular Narrative: 1.7% Undervalued

According to the most widely followed view, General Electric looks slightly undervalued, with analysts suggesting a fair value just above the recent share price.

"Advanced engine programs and digitalization are driving strong long-term revenue and margin growth through efficiency, sustainability, and increased aftermarket demand. International defense spending and supply chain improvements are fueling higher output, supporting robust cash flow and operational leverage."

Curious about what drives this valuation? This narrative points to high-flying financial projections and a premium profit multiple, but the details might surprise you. Hidden behind these numbers are bold assumptions about future growth and margins. Do they stack up? The answers and the logic behind this fair value call will leave you rethinking how the market values GE today.

Result: Fair Value of $297.93 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain strain and heavy reliance on commercial aviation could quickly cast doubt on today’s optimistic outlook for GE.

Find out about the key risks to this General Electric narrative.

Another View: Market Signals a Different Story

While analyst growth forecasts point to a fair value, a quick check of our DCF model tells a very different story. This suggests GE might actually be overvalued at today’s price. Which approach do you trust?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding General Electric to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own General Electric Narrative

If you think there is more to the story or want to dig deeper into the numbers, you can easily craft your own perspective in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding General Electric.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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