>
Switch to:

General Electric Co Owner Earnings per Share (TTM)

: 3.76 (As of Sep. 2021)
View and export this data going back to 1892. Start your Free Trial

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

General Electric Co's Owner Earnings per Share (TTM) ended in Sep. 2021 was $3.76. It's Price-to-Owner-Earnings ratio for today is 25.94.


The historical rank and industry rank for General Electric Co's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:GE' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 10.14   Med: 28.64   Max: 634.55
Current: 25.98

10.14
634.55

During the past 13 years, the highest Price-to-Owner-Earnings ratio of General Electric Co was 634.55. The lowest was 10.14. And the median was 28.64.


NYSE:GE's Price-to-Owner-Earnings is ranked lower than
52% of the 1410 Companies
in the Industrial Products industry.

( Industry Median: 24.42 vs. NYSE:GE: 25.98 )

General Electric Co's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $1.08. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $-0.52. It's PE Ratio ratio for today is At Loss.

General Electric Co's EPS without NRI for the three months ended in Sep. 2021 was $0.54. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $2.16. It's PE Ratio without NRI ratio for today is 45.20.


General Electric Co Owner Earnings per Share (TTM) Historical Data

The historical data trend for General Electric Co's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

General Electric Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.26 -13.65 -20.79 -3.83 6.00

General Electric Co Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.90 6.00 -0.05 0.18 3.76

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

General Electric Co Owner Earnings per Share (TTM) Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where General Electric Co's Owner Earnings per Share (TTM) falls into.



General Electric Co Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

General Electric Co's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income -40
Depreciation, Depletion and Amortization 5,568
Change In Deferred Tax -208
5Y Average of Maintenance Capital Expenditure 4,006
Change In Working Capital 2,835
Shares Outstanding (Diluted Average) 1,105

1. Start with "Net Income" from income statement. General Electric Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was $-40 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. General Electric Co's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2021 was $5,568 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. General Electric Co's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2021 was $-208 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $4,006 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

General Electric Co's 5-Year Average Maintenance Capital Expenditure = $4,006 Mil

5. "Change In Working Capital" is from cashflow statement. General Electric Co's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2021 was $2,835 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. General Electric Co's Shares Outstanding (Diluted Average) for the months ended in Sep. 2021 was 1105.000 Mil.

General Electric Co's Onwer Earnings Per Share for Sep. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( -40 +5568+-208
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-4006.1633413164+2835)/1105.000
=3.76

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=97.55/3.76
=25.94

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


General Electric Co Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of General Electric Co's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


General Electric Co Business Description

General Electric Co logo
Industry
Industrials » Industrial Products NAICS : 335312 SIC : 3621
Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel, precision health, and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, onshore and offshore wind turbines, as well as medical diagnostic and mobile equipment. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by former Danaher alum Larry Culp who is leading a multi-year turnaround of the storied conglomerate based on Lean principles.
Executives
Horton Thomas W director 4333 AMON CARTER BLVD. FORTH WORTH TX 76155
Rosput Paula G director 605 HILLSIDE DRIVE EAST SEATTLE WA 98112
Trian Fund Management, L.p. director 280 PARK AVENUE 41ST FLOOR NEW YORK NY 10017
Garden Edward P director 280 PARK AVE 41ST FL NEW YORK NY 10017
Lavizzo-mourey Risa J director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Tisch James S director 667 MADISON AVE NEW YORK NY 10021
Bazin Sebastien director 5 NECCO STREET 5 NECCO STREET BOSTON MA 02210
Dsouza Francisco director 500 GLENPOINTE CENTRE W TEANECK NJ 07666
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Lesjak Catherine A director 1501 PAGE MILL RD PALO ALTO CA 94304
Carter Ashton B director C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Pecresse Jerome officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210
Murphy Kieran Pius officer: Senior Vice President THE GROVE CENTRE,WHITE LION ROAD LITTLE CHALFONT X0 HP7 9LL
Joyce David Leon officer: Vice Chairman GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Stokes Russell officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210

General Electric Co Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)