General Electric Company

NYSE:GE Stock Report

Market Cap: US$191.5b

General Electric Valuation

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

Below Fair Value: GE ($177.52) is trading below our estimate of fair value ($222.7)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GE. This is calculated by dividing GE's market cap by their current earnings.
What is GE's PE Ratio?
PE Ratio34.9x
EarningsUS$5.50b
Market CapUS$191.49b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26x
RTX RTX
33.7x15.4%US$157.8b
LMT Lockheed Martin
18.9x2.0%US$126.8b
GD General Dynamics
21.6x9.2%US$79.1b
NOC Northrop Grumman
30x12.0%US$72.0b
GE General Electric
34.9x12.1%US$191.5b

Price-To-Earnings vs Peers: GE is expensive based on its Price-To-Earnings Ratio (34.9x) compared to the peer average (26x).


Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
2.4xn/aUS$38.35m
ETCC Environmental Tectonics
4.8xn/aUS$30.05m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
GE 34.9xIndustry Avg. 34.3xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GE is expensive based on its Price-To-Earnings Ratio (34.9x) compared to the US Aerospace & Defense industry average (34.3x).


Price to Earnings Ratio vs Fair Ratio

What is GE'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.

GE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.9x
Fair PE Ratio35.4x

Price-To-Earnings vs Fair Ratio: GE is good value based on its Price-To-Earnings Ratio (34.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).


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 GE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$177.52
US$208.89
+17.7%
6.3%US$235.00US$190.00n/a17
Nov ’25US$171.70
US$208.89
+21.7%
6.3%US$235.00US$190.00n/a17
Oct ’25US$186.30
US$199.40
+7.0%
6.5%US$230.00US$180.00n/a17
Sep ’25US$174.62
US$195.42
+11.9%
5.9%US$215.00US$170.00n/a16
Aug ’25US$169.75
US$195.11
+14.9%
6.1%US$215.00US$170.00n/a15
Jul ’25US$158.97
US$186.19
+17.1%
6.9%US$211.00US$167.00n/a16
Jun ’25US$165.14
US$184.50
+11.7%
5.8%US$211.00US$167.00n/a16
May ’25US$159.70
US$180.18
+12.8%
7.7%US$211.00US$148.00n/a17
Apr ’25US$175.36
US$172.62
-1.6%
13.6%US$210.00US$120.00n/a17
Mar ’25US$158.65
US$157.86
-0.5%
11.9%US$185.00US$120.00n/a17
Feb ’25US$135.41
US$143.56
+6.0%
8.4%US$165.00US$120.00n/a16
Jan ’25US$127.63
US$136.50
+6.9%
8.5%US$155.00US$115.00n/a16
Dec ’24US$122.50
US$131.00
+6.9%
7.7%US$150.00US$115.00n/a16
Nov ’24US$107.25
US$131.00
+22.1%
7.7%US$150.00US$115.00US$171.7016
Oct ’24US$110.55
US$127.89
+15.7%
7.2%US$141.00US$110.00US$186.3016
Sep ’24US$114.24
US$127.45
+11.6%
6.8%US$140.00US$110.00US$174.6216
Aug ’24US$113.22
US$123.87
+9.4%
8.9%US$140.00US$99.60US$169.7517
Jul ’24US$109.85
US$110.03
+0.2%
8.7%US$125.00US$90.00US$158.9719
Jun ’24US$104.67
US$108.18
+3.4%
7.3%US$121.00US$90.00US$165.1420
May ’24US$101.18
US$107.03
+5.8%
7.0%US$120.00US$91.90US$159.7018
Apr ’24US$95.60
US$99.18
+3.7%
6.3%US$113.00US$90.00US$175.3619
Mar ’24US$84.14
US$87.39
+3.9%
12.4%US$100.00US$50.00US$158.6519
Feb ’24US$82.32
US$85.73
+4.1%
11.5%US$97.00US$50.00US$135.4119
Jan ’24US$83.79
US$93.63
+11.7%
14.8%US$122.00US$58.00US$127.6319
Dec ’23US$85.26
US$90.61
+6.3%
15.7%US$122.00US$58.00US$122.5018
Nov ’23US$78.21
US$88.53
+13.2%
14.9%US$122.00US$58.00US$107.2519

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


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