Stock Analysis on Net

General Electric Co. (NYSE:GE)

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

General Electric Co., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings (loss) attributable to the Company (6,520) 5,704 (4,979) (22,355) (5,786)
Net (earnings) loss attributable to noncontrolling interests (71) (158) 67 (88) (270)
Net noncash charges 8,381 (2,575) 14,667 26,832 14,165
Changes in operating working capital (902) 626 664 273 3,285
Cash from operating activities 888 3,597 10,419 4,662 11,394
Cash paid during the year for interest, net of tax1 2,338 2,351 1,412 3,483 1,394
Additions to property, plant and equipment (1,250) (3,252) (5,813) (7,695) (7,371)
Dispositions of property, plant and equipment 167 1,644 3,718 4,519 5,746
Additions to internal-use software (111) (151) (282) (361) (549)
Free cash flow to the firm (FCFF) 2,032 4,189 9,454 4,608 10,614

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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 decreased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

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

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 7.80% 21.00% 63.00% 21.00% 72.40%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax 2,536 2,976 3,816 4,409 5,049
Less: Cash paid during the year for interest, tax2 198 625 2,404 926 3,655
Cash paid during the year for interest, net of tax 2,338 2,351 1,412 3,483 1,394

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 2021 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 2,536 × 7.80% = 198


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 104,734
Free cash flow to the firm (FCFF) 2,032
Valuation Ratio
EV/FCFF 51.54
Benchmarks
EV/FCFF, Competitors1
3M Co. 13.48
Boeing Co.
Caterpillar Inc. 22.52
Honeywell International Inc. 28.84
Lockheed Martin Corp. 16.53
Raytheon Technologies Corp. 27.48
EV/FCFF, Sector
Capital Goods 29.20
EV/FCFF, Industry
Industrials 23.42

Based on: 10-K (reporting date: 2021-12-31).

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 114,873 135,492 149,810 188,240 234,832
Free cash flow to the firm (FCFF)2 2,032 4,189 9,454 4,608 10,614
Valuation Ratio
EV/FCFF3 56.53 32.34 15.85 40.85 22.13
Benchmarks
EV/FCFF, Competitors4
3M Co. 17.03 16.56 19.73 24.72 28.39
Boeing Co. 16.40 16.93
Caterpillar Inc. 20.50 23.83 16.84 19.43 24.95
Honeywell International Inc. 25.22 26.49 21.13 19.22 22.51
Lockheed Martin Corp. 13.92 14.64 21.21 41.00 18.99
Raytheon Technologies Corp. 27.29 35.26 21.94 27.92 27.84
EV/FCFF, Sector
Capital Goods 28.81 58.61 24.75 24.18 21.61
EV/FCFF, Industry
Industrials 24.69 60.86 26.36 24.43 27.01

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 114,873 ÷ 2,032 = 56.53

4 Click competitor name to see calculations.

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 increased from 2019 to 2020 and from 2020 to 2021.