GURUFOCUS.COM » STOCK LIST » USA » NYSE » General Electric Co (NYSE:GE) » Definitions » Intrinsic Value: Projected FCF
Switch to:

General Electric Co (NYSE:GE) Intrinsic Value: Projected FCF

: $41.04 (As of Today)
View and export this data going back to 1892. Start your Free Trial

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2023-09-27), General Electric Co's Intrinsic Value: Projected FCF is $41.04. The stock price of General Electric Co is $111.40. Therefore, General Electric Co's Price-to-Intrinsic-Value-Projected-FCF of today is 2.7.

The historical rank and industry rank for General Electric Co's Intrinsic Value: Projected FCF or its related term are showing as below:

GE' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.46   Med: 0.77   Max: 3.55
Current: 2.71

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of General Electric Co was 3.55. The lowest was 0.46. And the median was 0.77.

GE's Price-to-Projected-FCF is ranked worse than
71.21% of 1869 companies
in the Industrial Products industry
Industry Median: 1.48 vs GE: 2.71

General Electric Co Intrinsic Value: Projected FCF Historical Data

The historical data trend for General Electric Co's Intrinsic Value: Projected FCF 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 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 99.68 86.61 58.03 26.97 43.56

General Electric Co Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Intrinsic Value: Projected FCF 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 18.59 24.56 43.56 38.92 41.04

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co's Intrinsic Value: Projected FCF, along with its competitors' market caps and Intrinsic Value: Projected FCF 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 Intrinsic Value: Projected FCF Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Intrinsic Value: Projected FCF distribution charts can be found below:

* The bar in red indicates where General Electric Co's Intrinsic Value: Projected FCF falls in comparison to its industry or sector. The grey bar indicates the Intrinsic Value: Projected FCF's extreme value range as defined by GuruFocus.



General Electric Co Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get General Electric Co's Free Cash Flow(6 year avg) = $2,112.00.

General Electric Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jun23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*2112+31194*0.8)/1098.000
=41.04

* 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.


General Electric Co  (NYSE:GE) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

General Electric Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=111.40/41.040239135408
=2.71

* 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.


General Electric Co Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of General Electric Co's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


General Electric Co (NYSE:GE) Business Description

General Electric Co logo
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 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, and onshore and offshore wind turbines. 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 alumnus Larry Culp, who is leading a multiyear turnaround of the storied conglomerate based on lean principles.
Executives
Rahul Ghai officer: Senior Vice President GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Jessica R. Uhl director 200 WEST STREET, NEW YORK NY 10282
Darren W Mcdew director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Thomas S Timko officer: Vice President 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
L Kevin Cox officer: Senior Vice President THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
Russell Stokes officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Scott Strazik officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Michael J Holston officer: Senior Vice President GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Happe Carolina Dybeck officer: Senior Vice President 5 NECCO STREET, BOSTON MA 02210
John S. Slattery officer: Executive Vice President 5 NECCO STREET, BOSTON MA 02210
Thomas W Horton director 4333 AMON CARTER BLVD., FORTH WORTH TX 76155
Isabella D Goren director C/O LYONDELLBASELL INDUSTRIES N V, DELFTSEPLEIN 27E, ROTTERDAM P7 3013AA
Francisco Dsouza director 500 GLENPOINTE CENTRE W, TEANECK NJ 07666
Risa J Lavizzo-mourey director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Paula Rosput Reynolds director 605 HILLSIDE DRIVE EAST, SEATTLE WA 98112