Stock Analysis on Net

General Electric Co. (NYSE:GE)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

General Electric Co., current price multiples

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General Electric Co. Boeing Co. Caterpillar Inc. Honeywell International Inc. Lockheed Martin Corp. Raytheon Technologies Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $77.14
No. shares of common stock outstanding 1,096,553,102
 
Earnings per share (EPS) $-6.16
Operating profit per share $5.56
Sales per share $64.83
Book value per share (BVPS) $36.76
Valuation Ratios (Price Multiples)
Price to operating profit (P/OP) 13.88 14.64 21.43 12.50 27.82 22.09 18.37
Price to sales (P/S) 1.19 1.61 2.09 3.86 1.70 2.14 1.93 1.81
Price to book value (P/BV) 2.10 6.11 7.16 10.40 1.89 4.64 5.52

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

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)

General Electric Co., historical price multiples

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 19.67
Price to operating profit (P/OP) 17.46 25.64 9.22 8.57 12.27
Price to sales (P/S) 1.50 1.41 1.18 0.82 1.11
Price to book value (P/BV) 2.64 2.89 3.66 3.00 1.96

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).

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. General Electric Co. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. General Electric Co. P/S ratio increased from 2019 to 2020 and from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. General Electric Co. P/BV ratio decreased from 2019 to 2020 and from 2020 to 2021.

Price to Earnings (P/E)

General Electric Co., historical P/E calculation, comparison to benchmarks

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,099,321,882 1,095,992,750 1,092,529,000 1,088,135,013 1,085,322,000
Selected Financial Data (US$)
Net earnings (loss) attributable to GE common shareholders (in millions) (6,757) 5,230  (5,439) (22,802) (6,222)
Earnings per share (EPS)2 -6.15 4.77 -4.98 -20.96 -5.73
Share price1, 3 96.83 93.84 94.88 85.28 115.92
Valuation Ratio
P/E ratio4 19.67
Benchmarks
P/E Ratio, Competitors5
Boeing Co. 21.87 24.68
Caterpillar Inc. 16.82 36.80 12.36 12.42 126.80
Honeywell International Inc. 23.14 29.63 20.97 16.02 67.20
Lockheed Martin Corp. 16.70 13.44 19.87 16.88 48.70
Raytheon Technologies Corp. 36.79 24.41 19.74 21.97
P/E Ratio, Sector
Capital Goods 62.94 150.84 41.61 63.89 66.96
P/E Ratio, Industry
Industrials 34.84 27.33 29.72 25.99

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net earnings (loss) attributable to GE common shareholders ÷ No. shares of common stock outstanding
= -6,757,000,000 ÷ 1,099,321,882 = -6.15

3 Closing price as at the filing date of General Electric Co. Annual Report.

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 96.83 ÷ -6.15 =

5 Click competitor name to see calculations.


Price to Operating Profit (P/OP)

General Electric Co., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,099,321,882 1,095,992,750 1,092,529,000 1,088,135,013 1,085,322,000
Selected Financial Data (US$)
Operating earnings (in millions) 6,096  4,012  11,237  10,834  10,254 
Operating profit per share2 5.55 3.66 10.29 9.96 9.45
Share price1, 3 96.83 93.84 94.88 85.28 115.92
Valuation Ratio
P/OP ratio4 17.46 25.64 9.22 8.57 12.27
Benchmarks
P/OP Ratio, Competitors5
Boeing Co. 19.08 19.69
Caterpillar Inc. 15.87 24.23 9.08 9.20 21.70
Honeywell International Inc. 20.68 24.86 18.81 16.16 15.55
Lockheed Martin Corp. 11.56 10.63 14.49 11.62 16.47
Raytheon Technologies Corp. 28.68 15.07 12.16 11.53
P/OP Ratio, Sector
Capital Goods 23.33 81.33 17.80 12.95 15.69
P/OP Ratio, Industry
Industrials 19.67 859.02 13.93 12.19 13.09

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 6,096,000,000 ÷ 1,099,321,882 = 5.55

3 Closing price as at the filing date of General Electric Co. Annual Report.

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 96.83 ÷ 5.55 = 17.46

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. General Electric Co. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Price to Sales (P/S)

General Electric Co., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,099,321,882 1,095,992,750 1,092,529,000 1,088,135,013 1,085,322,000
Selected Financial Data (US$)
Sales of equipment and services (in millions) 71,090  73,022  87,487  113,544  113,192 
Sales per share2 64.67 66.63 80.08 104.35 104.29
Share price1, 3 96.83 93.84 94.88 85.28 115.92
Valuation Ratio
P/S ratio4 1.50 1.41 1.18 0.82 1.11
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.87 1.96 2.34 2.26 2.17
Caterpillar Inc. 2.26 2.83 1.48 1.47 2.24
Honeywell International Inc. 3.73 4.34 3.51 2.59 2.74
Lockheed Martin Corp. 1.57 1.40 2.07 1.58 1.91
Raytheon Technologies Corp. 2.21 1.95 1.75 1.56 1.67
P/S Ratio, Sector
Capital Goods 2.04 2.07 1.92 1.62 1.83
P/S Ratio, Industry
Industrials 1.94 1.99 1.62 1.50 1.63

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Sales of equipment and services ÷ No. shares of common stock outstanding
= 71,090,000,000 ÷ 1,099,321,882 = 64.67

3 Closing price as at the filing date of General Electric Co. Annual Report.

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 96.83 ÷ 64.67 = 1.50

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. General Electric Co. P/S ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Book Value (P/BV)

General Electric Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,099,321,882 1,095,992,750 1,092,529,000 1,088,135,013 1,085,322,000
Selected Financial Data (US$)
Total GE shareholders’ equity (in millions) 40,310  35,552  28,316  30,981  64,263 
Book value per share (BVPS)2 36.67 32.44 25.92 28.47 59.21
Share price1, 3 96.83 93.84 94.88 85.28 115.92
Valuation Ratio
P/BV ratio4 2.64 2.89 3.66 3.00 1.96
Benchmarks
P/BV Ratio, Competitors5
Boeing Co. 674.83 569.92
Caterpillar Inc. 6.62 7.20 5.16 5.44 6.98
Honeywell International Inc. 6.91 8.07 6.97 5.96 6.44
Lockheed Martin Corp. 9.62 15.27 39.60 61.11
Raytheon Technologies Corp. 1.95 1.53 3.24 2.71 3.38
P/BV Ratio, Sector
Capital Goods 4.90 5.23 7.64 6.73 5.88
P/BV Ratio, Industry
Industrials 5.91 6.26 6.48 6.03 5.33

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 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Total GE shareholders’ equity ÷ No. shares of common stock outstanding
= 40,310,000,000 ÷ 1,099,321,882 = 36.67

3 Closing price as at the filing date of General Electric Co. Annual Report.

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 96.83 ÷ 36.67 = 2.64

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. General Electric Co. P/BV ratio decreased from 2019 to 2020 and from 2020 to 2021.