Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Analysis of Debt
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Current Valuation Ratios
GE Aerospace, current price multiples
| GE Aerospace | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | ||||||||||||
| No. shares of common stock outstanding | ||||||||||||
| Growth rate (g) | ||||||||||||
| Earnings per share (EPS) | ||||||||||||
| Next year expected EPS | ||||||||||||
| Operating profit per share | ||||||||||||
| Sales per share | ||||||||||||
| Book value per share (BVPS) | ||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | ||||||||||||
| Price to next year expected earnings | ||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||
| Price to operating profit (P/OP) | ||||||||||||
| Price to sales (P/S) | ||||||||||||
| Price to book value (P/BV) | ||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
GE Aerospace, historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios demonstrate a consistent upward trend across all metrics from 2022 to 2025. This suggests increasing investor optimism regarding the company’s future prospects, or potentially, increasing market speculation. The most significant changes are observed in Price to Sales and Price to Book Value, indicating a substantial re-evaluation of the company’s assets and revenue generation capabilities by the market.
- Price to Earnings (P/E)
- The Price to Earnings ratio is unavailable for 2021 and 2022. It begins at 16.18 in 2023 and increases to 36.01 by 2025. This indicates a growing willingness of investors to pay more for each dollar of earnings, potentially reflecting expectations of higher future earnings growth. The substantial increase from 2023 to 2024 (16.18 to 33.42) is particularly noteworthy.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio exhibits a steady increase from 17.46 in 2021 to 28.45 in 2025. While there are minor fluctuations, the overall trend is upward, suggesting investors are placing a higher value on the company’s operational profitability. The increase is less dramatic than that seen in P/E or P/S, indicating a more measured increase in valuation relative to operating performance.
- Price to Sales (P/S)
- The Price to Sales ratio shows the most dramatic increase of all ratios. Starting at 1.50 in 2021, it rises to 7.41 in 2025. This substantial increase suggests a significant shift in how the market values the company’s revenue. It could indicate expectations of accelerated revenue growth, or a premium being placed on the company’s market position. The jump from 2.30 in 2023 to 6.24 in 2024 is particularly pronounced.
- Price to Book Value (P/BV)
- The Price to Book Value ratio demonstrates a consistent and substantial increase, moving from 2.64 in 2021 to 16.78 in 2025. This indicates a growing perception that the market value of the company’s assets is significantly higher than their accounting book value. This could be due to intangible assets not fully reflected on the balance sheet, or expectations of improved asset utilization and profitability. The increase from 5.43 in 2023 to 11.33 in 2024, and then to 16.78 in 2025, is particularly strong.
In summary, the observed trends across these price multiples suggest a strengthening valuation of the company between 2021 and 2025. The increases are particularly notable in Price to Sales and Price to Book Value, indicating a significant shift in market perception regarding the company’s revenue generation and asset value.
Price to Earnings (P/E)
GE Aerospace, historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common shareholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/E Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) attributable to common shareholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibits a notable progression over the observed period. Initially unavailable for 2021 and 2022, the P/E ratio emerges in 2023 and subsequently increases through 2025. This trend correlates with changes in both share price and earnings per share.
- P/E Ratio Trend
- The P/E ratio is not reported for the earliest periods, likely due to negative earnings per share. It registers at 16.18 in 2023, then rises to 33.42 in 2024, and further increases to 36.01 in 2025. This indicates that investors are willing to pay a progressively higher price for each dollar of earnings.
- Share Price and EPS Relationship
- The share price demonstrates a decline from 2021 to 2022, followed by substantial growth through 2025. Earnings per share initially show negative values in 2021 and 2022, transitioning to positive figures in 2023 and continuing to increase through 2025, albeit at a slower rate than the share price. The increasing P/E ratio suggests that share price growth is outpacing earnings growth.
The shift from negative to positive earnings per share is a key driver in the calculation and interpretation of the P/E ratio. The increasing P/E ratio, coupled with rising share price and earnings, suggests growing investor confidence. However, the accelerating P/E ratio warrants further investigation to determine if the valuation is becoming stretched relative to earnings growth.
- Potential Considerations
- The increasing P/E ratio could indicate market expectations of future growth not yet reflected in current earnings. Alternatively, it could signal overvaluation. A comprehensive valuation analysis, incorporating other financial metrics and industry comparisons, would be necessary to form a definitive conclusion.
Price to Operating Profit (P/OP)
GE Aerospace, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/OP Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio increased, followed by a period of relative stabilization, and then a renewed increase. The share price and operating profit per share both demonstrated growth throughout the period, contributing to the observed P/OP ratio movements.
- P/OP Ratio Trend
- The P/OP ratio increased from 17.46 in 2021 to 19.88 in 2022, representing a rise of approximately 13.8%. A more substantial increase was then observed between 2022 and 2023, with the ratio reaching 27.11. The ratio experienced a slight decrease in 2024 to 26.78 before increasing again to 28.45 in 2025. This suggests increasing investor confidence in the company’s operating profitability, or potentially, increasing market expectations.
- Share Price and Operating Profit Per Share Relationship
- The share price increased consistently throughout the period, moving from US$96.83 in 2021 to US$298.86 in 2025. Operating profit per share also showed growth, rising from US$5.55 in 2021 to US$10.50 in 2025. The growth in both metrics contributed to the overall trend in the P/OP ratio. The ratio’s fluctuations, however, indicate that share price growth did not always move in direct proportion to operating profit per share growth.
- Ratio Stabilization and Subsequent Increase
- The slight decrease in the P/OP ratio from 2023 to 2024 could indicate a period where the market reassessed the company’s valuation relative to its operating performance. However, the subsequent increase in 2025 suggests a renewed positive outlook. The ratio remained relatively high throughout the period, indicating a premium placed on each dollar of operating profit.
Overall, the P/OP ratio demonstrates a generally increasing trend, punctuated by a brief period of stabilization. This suggests that investors were willing to pay a higher premium for each dollar of operating profit over time, reflecting positive sentiment towards the company’s future earnings potential.
Price to Sales (P/S)
GE Aerospace, historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Sales of equipment and services (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/S Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Sales of equipment and services ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio decreased before increasing substantially in later years. This movement correlates with changes in both share price and sales per share.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 1.50 in 2021, declining to 1.20 in 2022. A significant increase followed, with the ratio reaching 2.30 in 2023. Further substantial growth was observed in 2024, with the P/S ratio climbing to 6.24. This upward trend continued into 2025, culminating in a ratio of 7.41.
- Share Price
- The share price decreased from US$96.83 in 2021 to US$81.29 in 2022. Subsequently, the share price experienced considerable growth, reaching US$136.54 in 2023, US$204.11 in 2024, and US$298.86 in 2025. This positive trajectory aligns with the increasing P/S ratio observed during the same period.
- Sales per Share
- Sales per share increased slightly from US$64.67 in 2021 to US$67.57 in 2022. However, a decline was then noted, with sales per share falling to US$59.32 in 2023. This downward trend accelerated in 2024, with sales per share reaching US$32.72. A partial recovery occurred in 2025, with sales per share increasing to US$40.35, though remaining below levels seen in 2021 and 2022.
The substantial increase in the P/S ratio from 2023 to 2025 appears to be driven primarily by the significant growth in share price, despite a decrease in sales per share during the same timeframe. The ratio’s increase suggests investors were willing to pay a progressively higher premium for each dollar of sales generated by the company.
Price to Book Value (P/BV)
GE Aerospace, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/BV Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibits a significant upward trend over the observed period. Initially, the ratio demonstrates relative stability before experiencing substantial growth in later years. This analysis details the observed patterns in the P/BV ratio, alongside its constituent components, share price and book value per share.
- Share Price
- The share price experienced a decline from December 31, 2021, to December 31, 2022, decreasing from US$96.83 to US$81.29. However, a strong recovery and subsequent growth trajectory is evident, with the share price reaching US$136.54 by December 31, 2023, US$204.11 by December 31, 2024, and culminating in US$298.86 by December 31, 2025. This represents a considerable increase over the five-year period.
- Book Value Per Share
- In contrast to the share price, the book value per share (BVPS) demonstrates a consistent downward trend. From US$36.67 on December 31, 2021, BVPS decreased to US$33.39 on December 31, 2022, and continued to decline to US$25.16, US$18.02, and finally US$17.81 on December 31, 2023, December 31, 2024, and December 31, 2025, respectively. The rate of decline appears to moderate in the final two observed years.
- Price to Book Value Ratio
- The P/BV ratio began at 2.64 in 2021 and decreased slightly to 2.43 in 2022, mirroring the initial share price decline and BVPS decrease. A substantial increase is then observed, with the ratio rising to 5.43 in 2023, 11.33 in 2024, and reaching 16.78 in 2025. This significant growth in the P/BV ratio is primarily driven by the increasing share price coupled with the decreasing book value per share. The increasing ratio suggests that the market is placing a progressively higher value on the company’s net assets.
The divergence between the share price and book value per share is a key observation. While the share price has appreciated considerably, the underlying book value has diminished. This suggests a shift in market perception, potentially reflecting increased confidence in future earnings potential or a reassessment of the company’s asset base. The substantial increase in the P/BV ratio warrants further investigation to understand the underlying drivers of this valuation change.