GE

GE AerospaceIndustrials / Aerospace & DefenseINTACT

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. The company operates through two segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures, maintenance, repair, and overhaul (MRO) services of jet engines and sale of spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies designs, develops, manufactures, and services jet engines and avionics and power systems for governments, militaries, and commercial airframers, as well as MRO of engines and the sale of spare parts. This segment also offers aircraft components and systems, such as small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors and engine accessories for fixed wing and rotorcraft applications for commercial and military end users under the Avio Aero, Unison, Dowty Propellers, and Colibrium Additive brands. The company operates in the United States, Europe, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.

Share Price
$323.66
52W: $268.91 - $388.84
DCF Fair Value
$139.14
-132.6% Premium
P/E (TTM)
38.2x
ROIC
15.5%
Operating Margin
20.6%
FCF Yield
2%
Debt / Equity
1.13x
Piotroski Score
7/9
Altman Z-Score
3.07
Market Cap
$335.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($139.14)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$139.14
MOS Buy Target (-25%)
$104.35
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$323.66
DCF Fair Value
$138.86
-133.1% Premium
$6,595M
$100M$6,595M (Reported)$50,000M
10.3%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$10,300M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$65.1B
PV of Terminal Value
$89.4B
Implied Enterprise Value
$154.4B
Implied Equity Value
$144.1B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$7,274$8,024$8,850$9,762$10,767$11,251$11,758$12,287$12,840$13,418
Present Value (PV)$6,674$6,753$6,834$6,915$6,998$6,709$6,432$6,166$5,912$5,668

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-468.3% Premium
$56.95

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $8.48BVPS: $17.00
Revised Graham Formula-73.5% Premium
$186.56

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings1.9% Yield
$6.04 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $6.3BYield: 1.9%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
18.1% CAGR (Next 10 Yrs)

At the current price of $323.66, the market is assuming the business will compound Free Cash Flow at 18.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil GE with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for GE Aerospace. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 20.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: GE Aerospace (GE) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for GE Aerospace.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, GE Aerospace has an estimated DCF intrinsic fair value of $139.14 per share compared to its current market price of $323.66. This represents an estimated 132.6% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $56.95.

Related Industrials Value Stocks & Sector Peers

Compare GE Aerospace with audited intrinsic valuation models across the Industrials sector.

View All S&P 500 Stocks