General Electric operates as an infrastructure and financial services company worldwide. The company's products and services include aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. The company was founded in 1892 and is based in Boston, Massachusetts.
GE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that General Electric Co ranked in the 12th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for General Electric Co ended up being:
The compound growth rate in the free cash flow of General Electric Co over the past 5.49 years is -0.24%; that's higher than only 4.67% of free cash flow generating stocks in the Industrials sector.
General Electric Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 8.37% of tickers in our DCF set.
General Electric Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BWXT, OFLX, PLPC, RTX, and DCO can be thought of as valuation peers to GE, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
GE Digital today announced that it has been recognized by IDC’s new Worldwide Asset Performance Management 2020-2021 MarketScapes: Oil & Gas, Utilities, Mining, and Manufacturing. GE Digital’s Asset Performance Management (APM) is a suite of software and service solutions designed to help optimize the performance of assets for industrial companies. APM connects disparate data sources and uses advanced analytics and Digital Twin technology to turn data into actionable insights while fostering collaboration and knowledge management across an organization.