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:
We started the process of determining a valid price forecast for General Electric Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that General Electric Co ranked in the 11th 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. In terms of the factors that were most noteworthy in this DCF analysis for GE, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 40. Notably, its equity weight is greater than only 23.88% of US equities in the Industrials sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.57 years, is -0.19% -- higher than only 10.23% of stocks in our DCF forecasting set.
General Electric Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.01. This coverage rate is greater than that of only 17.93% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 ENR, ALJJ, INSW, BWXT, and DEWY.