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. As for the metrics that stood out in our discounted cash flow analysis of General Electric Co, consider:
The company's debt burden, as measured by earnings divided by interest payments, is -0.02; that's higher than only 21.57% of US stocks in the Industrials sector that have positive free cash flow.
The company's compound free cash flow growth rate over the past 5.42 years comes in at -0.2%; that's greater than merely 7.59% of US stocks we're applying DCF forecasting to.
40% of the company's capital comes from equity, which is greater than just 20.53% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GE, try SRCL, WLFC, EPAC, MFCO, and OFLX.
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