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By | August 6, 2022

How Much Is GE Worth?

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Free energy conglomerate General Electric (NYSE: GE) has shaken things upwards a bit in recent years, such every bit when it all of a sudden removed CEO John Flannery from his position on Oct. 1, 2022.

The change sent GE stock surging more xiii%, putting the company on track for its biggest single-day gain since March 2009, according to MarketWatch — a welcome sight after years of profit loss and competition from renewable resources.

The next couple of years saw an overall downward trend, when 2 years of negative profits dragged downwardly the stock, but things began looking up. Past tardily 2020, GE was outperforming the S&P 500 Alphabetize and had stiff institutional support, Investor’s Business Daily reported, perhaps considering of the i-for-8 opposite stock split the visitor implemented in late July 2021, which pushed share prices upwards.

In November 2021, GE announced it would split up into three split up companies: GE Aerospace, GE HealthCare and GE Vernova. Shares rose 2%, to $116.17 — the 52-week high price equally of July 28 — on the news.

The stock has faltered since then, struggling to break $100 and currently sitting below $80. Is this a buying opportunity, or do shares have further to autumn earlier GE regains its footing?

Here are some numbers to help y’all figure out whether you should put your faith in one of the largest industrial companies in the U.S.

GE Company Snapshot
Headquarters Boston
Year Founded 1890
CEO Larry Culp’southward Total Compensation $22.7 million in 2021
How Much Is GE Worth?
Share Price, 52-Calendar week Range $59.93-$116.17
2021 Revenue $74.196 billion
2021 Profit $4.608 billion
GOBankingRates’ Evaluation of GE’s Cyberspace Worth $71.524 billion

GE’south Market Cap: $78.49B

Market capitalization is determined by the total dollar value of a visitor’southward outstanding shares, which helps investors determine the relative size of a company.

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GE’s closing share price on July 27 was $71.58, giving the company a market capitalization of $78.49 billion. GE’s market place cap reflects how the marketplace as a whole values the company.

GE’due south Net Worth: $71.524B

Although marketplace cap tin can give you a sense of how much the market values a visitor, yous should proceed in mind that it’south based entirely on market sentiment — substantially reflecting the frequently changing opinions of investors.

The GOBankingRates Evaluation, on the other mitt, calculates a visitor’s net worth based on measurable figures similar avails and revenue. It’s a more than bourgeois valuation than the market value, taking into account full-twelvemonth profits and revenue from the terminal iii years, also as the company’s assets and debts.

Based on GE’due south revenue and profits from the terminal three years, the visitor is worth over $71.524 billion.

GE’south CEO: Larry Culp

GE installed Larry Culp as its new CEO after Flannery’s ouster. Having previously served as industrial manufacturing company Danaher’southward CEO, Culp was the outset outsider to helm GE in its more 120 years of operation.

Culp, 59, was tasked with accelerating the company’s plan to streamline, which Flannery was criticized for handling besides slowly, reported Bloomberg. Culp is credited with successfully expanding Danaher, a global science and technology visitor, over the course of 14 years. Over xc% of the transactions Culp handled during that time were visitor takeovers, co-ordinate to Bloomberg.

Culp’s Compensation

GE shareholders rejected a pay program for Culp that would take earned him as much as $230 one thousand thousand in 2020 while lowering his performance metrics, CFO Magazine reported.

His $73 million compensation package for 2020, which included just $650,000 in salary later a voluntary 74% reduction in light of the company’s poor performance at the outset of the pandemic, was one of the highest among CEOs of publicly traded companies.

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The stock awards that made up the bulk of his compensation grew from $15.v million in 2022 to over $72 million in 2020. Nevertheless, a reduction in his stock awards in 2021 reduced his accept by 69%, to $22.7 one thousand thousand, Reuters reported.

How GE Is Faring in 2022

GE released its 2nd-quarter 2022 earnings study on July 26. Cash flow improved, profits were up and revenue increased 2%, driven by strong aerospace operation as the aviation industry recovers from the pandemic. GE Aerospace was up 47% compared to last yr, according to a printing release.

GE HealthCare saw a 1% decrease in orders — not unexpected considering a strong uptick in 2021 resulting from the pandemic. However, revenue increased 1%, spurred by growth in imaging, ultrasound and Healthcare Systems Services merely hampered by ongoing supply chain issues.

The free energy unit also struggled. Renewable energy, which will be function of the GE Vernova business organisation, was hard hitting by supply concatenation challenges, aggrandizement and reduced U.Southward. volume resulting from the expiration of the production tax credit for onshore air current equipment. GE expects these challenges to continue through the end of the year.

Power — likewise to be included in the GE Vernova portfolio — saw a 16% subtract in orders and 2% decrease in revenue. However, GE expects Power to be profitable this year and see low-single-digit revenue growth for the year.

Looking ahead, Culp said, “We are improving delivery, toll, and cost functioning via lean and decentralization. However this progress, much is still uncertain virtually the external pressures companies are facing at this moment. Nosotros go along to tendency toward the depression terminate of our 2022 outlook on all metrics except cash, which is lower due to timing of working upper-case letter and Renewable Energy-related orders.”

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GE reported progress on several fronts:

  • Flight:
    Delta Air Lines and Qatar Airways will power their 737-ten shipping with GE’south CFM-International LEAP-1B engines. Also, the company completed the globe’s first exam of a megawatt-class multi-kilovolt hybrid electric propulsion system at altitudes that simulated commercial flight.
  • Healthcare:
    GE launched an AI-powered ultrasound system chosen Voluson Expert 22.
  • Energy:
    GE secured an lodge for combined cycle power plants in Vietnam. It also launched an energy resource management organisation designed to secure the electric grid and introduced a new wind turbine platform.

Should You lot Invest In GE Stock?

Although things are improving for GE, the company still has a means to go earlier it completely restores the religion of its investors. The third-quarter 2022 earnings report will assistance if information technology shows momentum in GE’due south render to profitability. In the concurrently, most analysts are recommending to either purchase or hold on to GE stock, so perhaps the optimism is contagious.

Sean Dennison contributed to the reporting for this commodity.

Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and acquirement and internet income from the final iii years. Base value is established past subtracting total liabilities from total avails from the company’s concluding full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus x times the average of the net profits from the concluding three full financial years, and then calculating the boilerplate of those 2 figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.

Data is accurate as of July 28, 2022, and subject area to alter.

Daria Uhlig is a personal finance, real estate and travel writer and editor with over 25 years of editorial experience. Her work has been featured on The Motley Fool, MSN, AOL, Yahoo! Finance, CNBC and USA Today. Daria studied journalism at the County College of Morris and earned a caste in communications at Centenary Academy, both in New Jersey.