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).
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) | $249.90 | |||||||||||
| No. shares of common stock outstanding | 1,066,386,643 | |||||||||||
| Growth rate (g) | 1.49% | |||||||||||
| Earnings per share (EPS) | $6.15 | |||||||||||
| Next year expected EPS | $6.24 | |||||||||||
| Operating profit per share | $7.67 | |||||||||||
| Sales per share | $32.93 | |||||||||||
| Book value per share (BVPS) | $18.14 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 40.65 | — | 16.22 | 35.31 | 24.99 | 20.13 | 39.56 | 46.42 | 30.07 | |||
| Price to next year expected earnings | 40.05 | — | 12.97 | 33.11 | 21.72 | 14.03 | 39.00 | 46.65 | 28.21 | |||
| Price-earnings-growth (PEG) | 27.31 | — | 0.65 | 5.32 | 1.66 | 0.46 | 27.32 | — | 4.56 | |||
| Price to operating profit (P/OP) | 32.58 | — | 13.39 | 28.92 | 19.16 | 15.31 | 28.89 | 32.19 | 24.37 | |||
| Price to sales (P/S) | 7.59 | 2.25 | 2.85 | 5.38 | 3.70 | 1.51 | 2.34 | 3.08 | 2.42 | |||
| Price to book value (P/BV) | 13.78 | — | 8.98 | 7.25 | 7.66 | 16.96 | 3.14 | 8.41 | 7.06 | |||
Based on: 10-K (reporting date: 2024-12-31).
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
Based on: 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), 10-K (reporting date: 2020-12-31).
- Price to Earnings Ratio (P/E)
- The P/E ratio shows a significant fluctuation over the periods with data available. Starting at 19.67 in 2020, the ratio was not reported for 2021 and 2022. It then decreased to 16.18 in 2023 before sharply increasing to 33.42 in 2024. This indicates a period of reduced valuation in terms of earnings followed by a substantial rise, suggesting changing market perceptions of profitability or earnings expectations.
- Price to Operating Profit (P/OP)
- This ratio exhibited variability but within a narrower range compared to P/E. It decreased from 25.64 in 2020 to its lowest point at 17.46 in 2021, reflecting improved operating profitability relative to price. Subsequently, it increased again to 19.88 in 2022 and climbed further to 27.11 in 2023 before slightly declining to 26.78 in 2024. The trend suggests initial valuation compression followed by a gradual increase, possibly due to changing operational performance or market expectations regarding operating profit.
- Price to Sales Ratio (P/S)
- The P/S ratio experienced a decline from 1.41 in 2020 to 1.2 in 2022, indicating a modest reduction in valuation relative to sales. However, it sharply rose to 2.3 in 2023 and increased dramatically to 6.24 in 2024. This sharp increase in the last two years suggests a higher market valuation relative to sales, which could be driven by optimism about future sales growth or changes in revenue quality.
- Price to Book Value Ratio (P/BV)
- The P/BV ratio declined gradually from 2.89 in 2020 to 2.43 in 2022, suggesting a decreasing market valuation relative to book value during this period. However, it more than doubled to 5.43 in 2023 and then approximately doubled again to 11.33 in 2024. This substantial increase points to a marked shift in the market’s valuation perspective regarding the company's net asset value, possibly due to anticipated growth, asset revaluation, or changes in capital structure.
Price to Earnings (P/E)
GE Aerospace, historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,073,290,505 | 1,088,334,304 | 1,089,286,553 | 1,099,321,882 | 1,095,992,750 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (loss) attributable to common shareholders (in millions) | 6,556) | 9,186) | (64) | (6,757) | 5,230) | |
| Earnings per share (EPS)2 | 6.11 | 8.44 | -0.06 | -6.15 | 4.77 | |
| Share price1, 3 | 204.11 | 136.54 | 81.29 | 96.83 | 93.84 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 33.42 | 16.18 | — | — | 19.67 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 15.65 | 15.55 | 19.15 | 16.82 | 36.80 | |
| Eaton Corp. plc | 30.00 | 35.88 | 27.93 | 27.77 | 37.46 | |
| Honeywell International Inc. | 23.10 | 22.73 | 26.97 | 23.14 | 29.63 | |
| Lockheed Martin Corp. | 20.18 | 15.35 | 20.48 | 16.70 | 13.44 | |
| RTX Corp. | 36.25 | 38.31 | 27.59 | 36.79 | — | |
| P/E Ratio, Sector | ||||||
| Capital Goods | 41.71 | 25.10 | 40.21 | 57.31 | 123.55 | |
| P/E Ratio, Industry | ||||||
| Industrials | 28.42 | 24.85 | 36.06 | 35.59 | — | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings (loss) attributable to common shareholders ÷ No. shares of common stock outstanding
= 6,556,000,000 ÷ 1,073,290,505 = 6.11
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 204.11 ÷ 6.11 = 33.42
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall positive growth trajectory over the five-year period. Starting at $93.84 at the end of 2020, it saw a slight increase to $96.83 by the end of 2021. This was followed by a decline to $81.29 in 2022. However, the subsequent years marked a strong recovery and significant growth, with the share price rising sharply to $136.54 in 2023 and further upward to $204.11 in 2024. This pattern indicates increased market confidence and value appreciation in the later years despite the temporary dip in 2022.
- Earnings Per Share (EPS) Analysis
- EPS data reveal notable volatility across the period. In 2020, EPS was positive at $4.77, but it fell into negative territory in 2021 at -$6.15, reflecting a challenging financial year. The EPS slightly improved in 2022, nearly reaching breakeven at -$0.06, indicating a recovery phase. Significant improvement was evident in 2023 with an EPS of $8.44, followed by a moderate decline to $6.11 in 2024. The EPS trajectory suggests fluctuating profitability with sharp recovery post-2021 losses.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio provides insight into valuation relative to earnings but is partially unavailable due to negative or near-zero EPS values in 2021 and 2022, periods where the ratio calculation is not meaningful. Reported P/E ratios were 19.67 in 2020, dropping out of the dataset for 2021 and 2022, then reported again at 16.18 in 2023, indicating a relatively modest valuation relative to earnings that year. In 2024, the P/E ratio increased considerably to 33.42, reflecting higher market valuation relative to earnings despite lower EPS than in 2023. The fluctuations in P/E demonstrate market sensitivity to changing earnings and possibly anticipation of future growth or risks.
Price to Operating Profit (P/OP)
GE Aerospace, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,073,290,505 | 1,088,334,304 | 1,089,286,553 | 1,099,321,882 | 1,095,992,750 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | 8,179) | 5,482) | 4,454) | 6,096) | 4,012) | |
| Operating profit per share2 | 7.62 | 5.04 | 4.09 | 5.55 | 3.66 | |
| Share price1, 3 | 204.11 | 136.54 | 81.29 | 96.83 | 93.84 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 26.78 | 27.11 | 19.88 | 17.46 | 25.64 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 12.92 | 12.40 | 16.25 | 15.87 | 24.23 | |
| Eaton Corp. plc | 24.57 | 29.72 | 22.78 | 19.33 | 25.83 | |
| Honeywell International Inc. | 17.71 | 18.15 | 20.84 | 20.68 | 24.86 | |
| Lockheed Martin Corp. | 15.35 | 12.49 | 14.06 | 11.56 | 10.63 | |
| RTX Corp. | 26.47 | 34.37 | 26.48 | 28.68 | — | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | 28.93 | 22.37 | 25.20 | 22.96 | 70.31 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.03 | 20.78 | 19.86 | 22.38 | 68.31 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 8,179,000,000 ÷ 1,073,290,505 = 7.62
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 204.11 ÷ 7.62 = 26.78
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a slight increase from 93.84 USD in 2020 to 96.83 USD in 2021. Subsequently, there was a notable decline to 81.29 USD in 2022, followed by a sharp recovery and significant growth to 136.54 USD in 2023 and further reaching 204.11 USD in 2024. Overall, the share price demonstrated strong upward momentum from 2022 to 2024, more than doubling within this period.
- Operating Profit Per Share Trend
- Operating profit per share rose considerably from 3.66 USD in 2020 to 5.55 USD in 2021. It then declined to 4.09 USD in 2022 before improving again to 5.04 USD in 2023 and reaching a high of 7.62 USD in 2024. This indicates some volatility across the years but an overall increasing trend in operational profitability at the per-share level.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio decreased sharply from 25.64 in 2020 to 17.46 in 2021, suggesting improving valuation relative to operating profit per share. However, it increased to 19.88 in 2022, then reached higher levels of 27.11 in 2023 and 26.78 in 2024. This reflects that despite growing profits, the share price appreciation led to a relatively higher valuation multiple in the latter years, signaling possibly increased investor optimism or expectations.
- Overall Insights
- The data indicates an initial recovery in operational profitability and a modest increase in share price up to 2021, followed by a profit dip and share price slump in 2022. Subsequently, both operational profitability and share price rebounded strongly in 2023 and 2024. The rising P/OP ratio in the last two years suggests that the share price growth outpaced operating profit gains, potentially reflecting market enthusiasm or other external factors influencing valuation. The trends highlight both volatility and resilience in financial performance over the analyzed period.
Price to Sales (P/S)
GE Aerospace, historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,073,290,505 | 1,088,334,304 | 1,089,286,553 | 1,099,321,882 | 1,095,992,750 | |
| Selected Financial Data (US$) | ||||||
| Sales of equipment and services (in millions) | 35,121) | 64,565) | 73,602) | 71,090) | 73,022) | |
| Sales per share2 | 32.72 | 59.32 | 67.57 | 64.67 | 66.63 | |
| Share price1, 3 | 204.11 | 136.54 | 81.29 | 96.83 | 93.84 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 6.24 | 2.30 | 1.20 | 1.50 | 1.41 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 1.98 | 1.66 | 1.90 | 1.87 | 1.96 | |
| Caterpillar Inc. | 2.75 | 2.52 | 2.27 | 2.26 | 2.83 | |
| Eaton Corp. plc | 4.58 | 4.98 | 3.31 | 3.03 | 2.96 | |
| Honeywell International Inc. | 3.42 | 3.51 | 3.78 | 3.73 | 4.34 | |
| Lockheed Martin Corp. | 1.52 | 1.57 | 1.78 | 1.57 | 1.40 | |
| RTX Corp. | 2.14 | 1.78 | 2.14 | 2.21 | 1.95 | |
| P/S Ratio, Sector | ||||||
| Capital Goods | 2.77 | 2.26 | 2.09 | 2.09 | 2.11 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.29 | 2.06 | 1.80 | 2.07 | 2.14 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Sales of equipment and services ÷ No. shares of common stock outstanding
= 35,121,000,000 ÷ 1,073,290,505 = 32.72
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 204.11 ÷ 32.72 = 6.24
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trajectory over the five-year period. Starting at $93.84 at the end of 2020, it showed a slight increase to $96.83 in 2021, followed by a decline to $81.29 in 2022. However, from 2022 onwards, the share price significantly increased, reaching $136.54 in 2023 and substantially rising to $204.11 by the end of 2024. This indicates a strong positive market valuation trend in the latter years.
- Sales Per Share Trend
- Sales per share displayed a decreasing pattern across the observed timeframe. Beginning at $66.63 in 2020, sales per share remained relatively stable with a small decline to $64.67 in 2021, then a slight improvement to $67.57 in 2022. After 2022, sales per share experienced a marked decline, falling to $59.32 in 2023 and significantly dropping to $32.72 in 2024. This downward movement suggests a reduction in revenue generated per share over time.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio fluctuated notably during the period. It started at 1.41 in 2020 and slightly increased to 1.5 in 2021. Following this, it decreased to 1.2 in 2022, before sharply increasing to 2.3 in 2023 and then surging to 6.24 in 2024. The rising P/S ratio, particularly the substantial increase in the latest years, reflects an increasing market valuation relative to sales, possibly suggesting market expectations of higher future growth or profitability despite the declining sales per share.
- Overall Analysis
- The data presents a scenario where the share price is rising significantly despite declining sales per share, leading to a large increase in the price-to-sales ratio. This divergence indicates that investors may be valuing the company based on factors other than current sales performance, such as anticipated future growth, improved profitability margins, or strategic initiatives. It also highlights potential market optimism or speculative interest in the equity. Continued monitoring of actual sales and profitability alongside market valuation metrics will be important for a balanced assessment.
Price to Book Value (P/BV)
GE Aerospace, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,073,290,505 | 1,088,334,304 | 1,089,286,553 | 1,099,321,882 | 1,095,992,750 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | 19,342) | 27,378) | 36,366) | 40,310) | 35,552) | |
| Book value per share (BVPS)2 | 18.02 | 25.16 | 33.39 | 36.67 | 32.44 | |
| Share price1, 3 | 204.11 | 136.54 | 81.29 | 96.83 | 93.84 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 11.33 | 5.43 | 2.43 | 2.64 | 2.89 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 8.66 | 8.25 | 8.09 | 6.62 | 7.20 | |
| Eaton Corp. plc | 6.16 | 6.07 | 4.04 | 3.63 | 3.54 | |
| Honeywell International Inc. | 7.08 | 8.11 | 8.02 | 6.91 | 8.07 | |
| Lockheed Martin Corp. | 17.00 | 15.54 | 12.67 | 9.62 | 15.27 | |
| RTX Corp. | 2.88 | 2.05 | 1.97 | 1.95 | 1.53 | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | 7.55 | 6.94 | 5.31 | 4.77 | 5.05 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 6.68 | 6.85 | 5.50 | 5.44 | 5.89 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 19,342,000,000 ÷ 1,073,290,505 = 18.02
3 Closing price as at the filing date of GE Aerospace Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 204.11 ÷ 18.02 = 11.33
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a fluctuating yet overall upward trend across the periods analyzed. Starting at 93.84 US dollars at the end of 2020, the price experienced a slight increase to 96.83 US dollars by the end of 2021, followed by a decline to 81.29 US dollars in 2022. Thereafter, a significant recovery and rise took place, with the share price reaching 136.54 US dollars in 2023 and further increasing sharply to 204.11 US dollars by the end of 2024.
- Book Value Per Share (BVPS)
- The book value per share showed a downward trend over the period. Beginning at 32.44 US dollars at the end of 2020, it increased slightly to 36.67 US dollars in 2021, but then declined consistently over the following years to 33.39 US dollars in 2022, 25.16 US dollars in 2023, and reached a low of 18.02 US dollars by the end of 2024.
- Price-to-Book Value Ratio (P/BV)
- The price-to-book value ratio demonstrated a complex but notable pattern. Initially, the ratio decreased from 2.89 in 2020 to 2.64 in 2021 and to 2.43 in 2022, reflecting the decreasing share price relative to book value per share. However, from 2023 onward, the P/BV ratio increased markedly, reaching 5.43 and then more than doubling to 11.33 by 2024. This sharp rise corresponds with the strong increase in share price alongside the declining book value per share, indicating a significantly higher market valuation in comparison to the company's book value.