General Electric Co., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net earnings (loss) attributable to the Company	9,481)	225)	(6,520)	5,704)	(4,979)
Net (earnings) loss attributable to noncontrolling interests	(38)	67)	(71)	(158)	67)
Net noncash charges	(5,511)	4,176)	8,381)	(2,575)	14,667)
Changes in operating working capital	1,638)	1,396)	(902)	626)	664)
Cash from operating activities	5,570)	5,864)	888)	3,597)	10,419)
Cash paid during the year for interest, net of tax¹	945)	1,035)	2,338)	2,351)	1,412)
Additions to property, plant and equipment and internal-use software	(1,595)	(1,484)	(1,361)	(3,403)	(6,095)
Dispositions of property, plant and equipment	89)	209)	167)	1,644)	3,718)
Free cash flow to the firm (FCFF)	5,009)	5,624)	2,032)	4,189)	9,454)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the General Electric Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	General Electric Co. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

General Electric Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	11.40%	33.70%	7.80%	21.00%	63.00%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	1,067)	1,561)	2,536)	2,976)	3,816)
Less: Cash paid during the year for interest, tax²	122)	526)	198)	625)	2,404)
Cash paid during the year for interest, net of tax	945)	1,035)	2,338)	2,351)	1,412)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 1,067 × 11.40% = 122

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General Electric Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	176,008)
Free cash flow to the firm (FCFF)	5,009)
Valuation Ratio
EV/FCFF	35.14
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	21.54
Caterpillar Inc.	16.75
Cummins Inc.	15.78
Eaton Corp. plc	42.03
Honeywell International Inc.	28.53
Lockheed Martin Corp.	18.38
RTX Corp.	25.76
EV/FCFF, Sector
Capital Goods	23.62
EV/FCFF, Industry
Industrials	25.34

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

General Electric Co., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	148,093)	97,249)	114,873)	135,492)	149,810)
Free cash flow to the firm (FCFF)²	5,009)	5,624)	2,032)	4,189)	9,454)
Valuation Ratio
EV/FCFF³	29.56	17.29	56.53	32.34	15.85
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	25.63	37.53	—	—	—
Caterpillar Inc.	16.08	23.54	20.50	23.83	16.84
Cummins Inc.	14.10	35.58	21.11	16.67	10.35
Eaton Corp. plc	38.49	33.44	38.16	21.94	15.50
Honeywell International Inc.	29.13	29.82	25.22	26.49	21.13
Lockheed Martin Corp.	17.62	19.69	13.92	14.64	21.21
RTX Corp.	23.86	28.45	27.29	35.26	21.94
EV/FCFF, Sector
Capital Goods	22.77	26.17	31.55	66.05	23.83
EV/FCFF, Industry
Industrials	25.15	25.09	28.18	65.99	30.06

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 148,093 ÷ 5,009 = 29.56

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	General Electric Co. EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

General Electric Co. (NYSE:GE)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical