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 ($328.34) is trading below our estimate of [[fair value]] ($423.45)

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

Valuation Score

2/6

Valuation Score 2/6

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 ($328.34) is trading below our estimate of fair value ($423.45)

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

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	71.5x
Earnings	US$1.27b
Market Cap	US$93.09b

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	2.5x
Enterprise Value/EBITDA	62.8x
PEG Ratio	2.6x

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	34.3x
EMR Emerson Electric	45.3x	19.4%	US$74.6b
ETN Eaton	36.4x	11.2%	US$140.4b
AME AMETEK	32.4x	9.7%	US$43.8b
ITW Illinois Tool Works	22.9x	1.2%	US$79.6b
GEV GE Vernova	71.5x	27.8%	US$93.1b

Price-To-Earnings vs Peers: GEV is expensive based on its Price-To-Earnings Ratio (71.5x) compared to the peer average (34.3x).

Price to Earnings Ratio vs Industry

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

1 Company	Price / Earnings	Estimated Growth	Market Cap
KRFG OneSolution Technology	1x	n/a	US$1.33m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GEV is expensive based on its Price-To-Earnings Ratio (71.5x) compared to the US Electrical industry average (23.6x).

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	71.5x
Fair PE Ratio	47.4x

Price-To-Earnings vs Fair Ratio: GEV is expensive based on its Price-To-Earnings Ratio (71.5x) compared to the estimated Fair Price-To-Earnings Ratio (47.4x).

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 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	US$328.34	US$366.50 +11.6%	12.8%	US$420.00	US$254.00	n/a	24
Dec ’25	US$334.12	US$328.90 -1.6%	15.7%	US$410.00	US$212.00	n/a	22
Nov ’25	US$301.09	US$302.46 +0.5%	13.5%	US$374.00	US$207.00	n/a	21
Oct ’25	US$256.53	US$239.37 -6.7%	16.3%	US$300.00	US$182.00	n/a	21
Sep ’25	US$201.00	US$199.24 -0.9%	9.5%	US$221.00	US$147.00	n/a	16
Aug ’25	US$174.03	US$194.09 +11.5%	11.3%	US$220.00	US$147.00	n/a	15
Jul ’25	US$167.52	US$177.24 +5.8%	10.5%	US$211.83	US$147.00	n/a	14
Jun ’25	US$175.90	US$169.55 -3.6%	9.7%	US$197.00	US$138.00	n/a	11
May ’25	US$151.67	US$161.50 +6.5%	7.0%	US$177.00	US$138.00	n/a	10

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