General Stock Valuation

GE
 Stock
  

USD 64.55  0.81  1.24%   

What is the value of General Electric today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as General Electric, is its stock price multiplied by the total number of shares outstanding, calculating General Electric's enterprise value requires a different approach. It uses General Electric's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
General Electric retains a regular Real Value of $74.25 per share. The prevalent price of the firm is $64.55. At this time, the firm appears to be undervalued. Our model calculates the value of General Electric from evaluating the firm fundamentals such as Return On Equity of (11.86) %, current valuation of 100.05 B, and Return On Asset of 1.23 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
General Electric Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as General Electric's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 64.55
Please note that General Electric's price fluctuation is very steady at this time. Calculation of the real value of General Electric is based on 3 months time horizon. Increasing General Electric's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for General Electric is useful when determining the fair value of the General stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of General Electric. Since General Electric is currently traded on the exchange, buyers and sellers on that exchange determine the market value of General Stock. However, General Electric's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
74.25
Real Value
76.24
Upside
Estimating the potential upside or downside of General Electric helps investors to forecast how General stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of General Electric more accurately as focusing exclusively on General Electric's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimated ValueHigh
62.5864.5766.56
Details
14 Analysts
Consensus
LowTarget PriceHigh
55.00117.55140.00
Details

General Electric Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining General Electric's current stock value. Our valuation model uses many indicators to compare General Electric value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across General Electric competition to find correlations between indicators driving General Electric's intrinsic value. More Info.
General Electric is one of the top stocks in price to sales category among related companies. It is one of the top stocks in last dividend paid category among related companies creating about  0.32  of Last Dividend Paid per Price to Sales. The ratio of Price to Sales to Last Dividend Paid for General Electric is roughly  3.09 . Comparative valuation analysis is a catch-all model that can be used if you cannot value General Electric by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for General Electric's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the General Electric's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates General Electric's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in General Electric and how it compares across the competition.

About General Electric Valuation

The stock valuation mechanism determines the current worth of General Electric on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of General Electric. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of General Electric based exclusively on its fundamental and basic technical indicators. By analyzing General Electric's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of General Electric's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of General Electric. We calculate exposure to General Electric's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to General Electric's related companies.
General Electric Company operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is headquartered in Boston, Massachusetts. General Electric operates under Specialty Industrial Machinery classification in the United States and is traded on New York Stock Exchange. It employs 168000 people.
General Electric's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether General Electric's value is low or high relative to the company's performance and growth projections. Determining the market value of General Electric can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of General Electric represents a small ownership stake in the entity. As a stockholder of General, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

General Electric Dividends Analysis For Valuation

There are various types of dividends General Electric can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of General shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from General Electric directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When General pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of General Electric by the value of the dividends paid out.

General Electric Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as General Electric does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.70
Revenue Growth2.20%
Enterprise Value To Ebitda12.78
Enterprise Value To Revenue1.34
Please check Risk vs Return Analysis. Note that the General Electric information on this page should be used as a complementary analysis to other General Electric's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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When running General Electric price analysis, check to measure General Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy General Electric is operating at the current time. Most of General Electric's value examination focuses on studying past and present price action to predict the probability of General Electric's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move General Electric's price. Additionally, you may evaluate how the addition of General Electric to your portfolios can decrease your overall portfolio volatility.
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Is General Electric's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of General Electric. If investors know General will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about General Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of General Electric is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General Electric's value that differs from its market value or its book value, called intrinsic value, which is General Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because General Electric's market value can be influenced by many factors that don't directly affect General Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between General Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine General Electric value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.