Microsoft Excel LibreOffice Calc

General Electric Co. (GE)


Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

General Electric Co., current price multiples

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General Electric Co. 3M Co. Danaher Corp. Honeywell International Inc. General Industrials Industrials
Selected Financial Data
Current share price (P) $8.80
No. shares of common stock outstanding 8,727,072,000
 
Earnings per share (EPS) $-2.61
Operating profit per share $1.24
Sales per share $13.01
Book value per share (BVPS) $3.55
Valuation Ratios (Price Multiples)
Price to operating profit (P/OP) 7.09 12.62 29.24 17.55 13.67 14.07
Price to sales (P/S) 0.68 2.78 5.00 2.81 1.85 1.98
Price to book value (P/BV) 2.48 9.28 3.53 6.47 4.42 6.48

Based on: 10-K (filing date: 2019-02-26).

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, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 32.22 17.17
Price to operating profit (P/OP) 8.57 12.27 19.05 18.75 8.06
Price to sales (P/S) 0.82 1.11 2.39 2.59 2.45
Price to book value (P/BV) 3.00 1.96 3.47 2.79 2.04

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.
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.’s P/OP ratio declined from 2016 to 2017 and from 2017 to 2018.
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.’s P/S ratio declined from 2016 to 2017 and from 2017 to 2018.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. General Electric Co.’s P/BV ratio declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

Price to Earnings (P/E)

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

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 8,705,080,100 8,682,576,000 8,724,783,000 9,330,607,330 10,064,909,484
Selected Financial Data (US$)
Net earnings (loss) attributable to GE common shareowners (in millions) (22,802) (6,222) 8,176  (6,145) 15,233 
Earnings per share (EPS)2 -2.62 -0.72 0.94 -0.66 1.51
Share price1, 3 10.66 14.49 30.19 29.40 25.99
Valuation Ratio
P/E ratio4 32.22 17.17
Benchmarks
P/E Ratio, Competitors5
3M Co. 21.51 27.32 21.04 18.86 21.25
Danaher Corp. 29.77 27.25 23.02 17.85 23.69
Honeywell International Inc. 16.02 67.20 19.29 16.70 19.27
P/E Ratio, Sector
General Industrials 157.26 25.31 74.12 18.88
P/E Ratio, Industry
Industrials 28.09 28.48 22.75 23.39 18.71

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
EPS = Net earnings (loss) attributable to GE common shareowners ÷ No. shares of common stock outstanding
= -22,802,000,000 ÷ 8,705,080,100 = -2.62

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

4 2018 Calculation
P/E ratio = Share price ÷ EPS
= 10.66 ÷ -2.62 =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 8,705,080,100 8,682,576,000 8,724,783,000 9,330,607,330 10,064,909,484
Selected Financial Data (US$)
Operating earnings (in millions) 10,834  10,254  13,827  14,634  32,474 
Operating profit per share2 1.24 1.18 1.58 1.57 3.23
Share price1, 3 10.66 14.49 30.19 29.40 25.99
Valuation Ratio
P/OP ratio4 8.57 12.27 19.05 18.75 8.06
Benchmarks
P/OP Ratio, Competitors5
3M Co. 15.97 16.97 14.71 13.12 14.76
Danaher Corp. 23.18 22.48 21.37 17.27 17.94
Honeywell International Inc. 16.16 15.55 13.88 11.66 14.01
P/OP Ratio, Sector
General Industrials 14.04 15.49 17.10 15.84 10.44
P/OP Ratio, Industry
Industrials 13.78 15.57 15.55 12.60 11.54

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 10,834,000,000 ÷ 8,705,080,100 = 1.24

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

4 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 10.66 ÷ 1.24 = 8.57

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.’s P/OP ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 8,705,080,100 8,682,576,000 8,724,783,000 9,330,607,330 10,064,909,484
Selected Financial Data (US$)
Sales of goods and services (in millions) 113,544  113,192  110,390  105,808  106,758 
Sales per share2 13.04 13.04 12.65 11.34 10.61
Share price1, 3 10.66 14.49 30.19 29.40 25.99
Valuation Ratio
P/S ratio4 0.82 1.11 2.39 2.59 2.45
Benchmarks
P/S Ratio, Competitors5
3M Co. 3.51 4.19 3.53 3.01 3.31
Danaher Corp. 3.97 3.70 3.48 2.91 3.09
Honeywell International Inc. 2.59 2.74 2.36 2.06 2.03
P/S Ratio, Sector
General Industrials 1.90 2.15 2.65 2.59 2.57
P/S Ratio, Industry
Industrials 1.94 2.13 1.99 1.72 1.85

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
Sales per share = Sales of goods and services ÷ No. shares of common stock outstanding
= 113,544,000,000 ÷ 8,705,080,100 = 13.04

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

4 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= 10.66 ÷ 13.04 = 0.82

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.’s P/S ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 8,705,080,100 8,682,576,000 8,724,783,000 9,330,607,330 10,064,909,484
Selected Financial Data (US$)
Total GE shareowners’ equity (in millions) 30,981  64,263  75,828  98,274  128,159 
Book value per share (BVPS)2 3.56 7.40 8.69 10.53 12.73
Share price1, 3 10.66 14.49 30.19 29.40 25.99
Valuation Ratio
P/BV ratio4 3.00 1.96 3.47 2.79 2.04
Benchmarks
P/BV Ratio, Competitors5
3M Co. 11.75 11.48 10.32 7.79 8.03
Danaher Corp. 2.80 2.58 2.56 2.53 2.63
Honeywell International Inc. 5.96 6.44 4.79 4.35 4.63
P/BV Ratio, Sector
General Industrials 4.53 3.66 4.06 3.32 2.80
P/BV Ratio, Industry
Industrials 6.35 6.01 5.41 4.16 3.99

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
BVPS = Total GE shareowners’ equity ÷ No. shares of common stock outstanding
= 30,981,000,000 ÷ 8,705,080,100 = 3.56

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

4 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= 10.66 ÷ 3.56 = 3.00

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’s required rate of return and its actual rate of return. General Electric Co.’s P/BV ratio declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.