We’ve recently updated our valuation analysis.

General Electric Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GE 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/Revenue1.3x
Enterprise Value/EBITDA15.4x
PEG Ratio3.6x

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.8x
HON Honeywell International
4x4.9%US$140.2b
1.8x0.8%US$63.2b
IEP Icahn Enterprises
1.4x-8.8%US$18.1b
BBU Brookfield Business Partners
0.07xn/aUS$4.0b
GE General Electric
1.1x-4.3%US$87.9b

Price-To-Sales vs Peers: GE is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (1.8x).


Price to Earnings Ratio vs Industry

How does GE's PE Ratio compare vs other companies in the North American Industrials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
n/an/an/a

Price-To-Sales vs Industry: GE is expensive based on its Price-To-Sales Ratio (1.1x) compared to the Global Industrials industry average (0.7x)


Price to Sales Ratio vs Fair Ratio

What is GE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: GE is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).


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 ($80.48) is trading below our estimate of fair value ($110.96)

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


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$80.48
US$85.73
+6.5%
11.5%US$97.00US$50.00n/a19
Jan ’24US$83.79
US$93.63
+11.7%
14.8%US$122.00US$58.00n/a19
Dec ’23US$85.26
US$90.61
+6.3%
15.7%US$122.00US$58.00n/a18
Nov ’23US$78.21
US$88.53
+13.2%
14.9%US$122.00US$58.00n/a19
Oct ’23US$61.91
US$88.95
+43.7%
16.4%US$122.00US$50.00n/a19
Sep ’23US$73.08
US$89.37
+22.3%
16.5%US$122.00US$50.00n/a19
Aug ’23US$75.80
US$90.00
+18.7%
17.5%US$122.00US$50.00n/a18
Jul ’23US$63.54
US$100.39
+58.0%
19.2%US$129.00US$55.00n/a18
Jun ’23US$77.52
US$102.53
+32.3%
17.2%US$129.00US$55.00n/a19
May ’23US$74.55
US$107.22
+43.8%
15.8%US$129.00US$55.00n/a18
Apr ’23US$92.49
US$114.86
+24.2%
15.4%US$133.00US$55.00n/a18
Mar ’23US$92.33
US$118.08
+27.9%
16.4%US$145.00US$55.00n/a18
Feb ’23US$97.95
US$121.44
+24.0%
10.2%US$145.00US$100.00US$80.4817
Jan ’23US$94.47
US$124.71
+32.0%
8.7%US$143.00US$100.00US$83.7916
Dec ’22US$93.00
US$127.59
+37.2%
7.9%US$143.00US$100.00US$85.2616
Nov ’22US$106.23
US$119.83
+12.8%
16.3%US$137.00US$55.00US$78.2115
Oct ’22US$105.82
US$117.73
+11.3%
20.2%US$136.00US$40.00US$61.9114
Sep ’22US$103.66
US$118.28
+14.1%
22.1%US$144.00US$40.00US$73.0815
Aug ’22US$103.60
US$117.03
+13.0%
22.3%US$144.00US$40.00US$75.8014
Jul ’22US$107.84
US$115.10
+6.7%
21.9%US$144.00US$40.00US$63.5416
Jun ’22US$113.20
US$113.17
-0.02%
22.3%US$144.00US$40.00US$77.5215
May ’22US$104.96
US$110.63
+5.4%
22.5%US$144.00US$40.00US$74.5514
Apr ’22US$106.24
US$107.14
+0.8%
23.0%US$144.00US$40.00US$92.4913
Mar ’22US$104.88
US$96.75
-7.7%
22.4%US$120.00US$40.00US$92.3317
Feb ’22US$85.92
US$98.90
+15.1%
16.4%US$112.00US$56.00US$97.9516

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


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