GE Aerospace (GE)
Industrials · NYSE · US
Fundamentals
Valuation and ratings
GE Aerospace trades at $345.73, which is 31% above the $240.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 70 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 44.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About GE Aerospace
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. The company operates through two segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures, maintenance, repair, and overhaul (MRO) services of jet engines and sale of spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies designs, develops, manufactures, and services jet engines and avionics and power systems for governments, militaries, and commercial airframers, as well as MRO of engines and the sale of spare parts. This segment also offers aircraft components and systems, such as small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors and engine accessories for fixed wing and rotorcraft applications for commercial and military end users under the Avio Aero, Unison, Dowty Propellers, and Colibrium Additive brands. The company operates in the United States, Europe, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.
GE passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
28 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Chris Hohn, TCI Fund Management Ltd$13.48B · 29.9% of book
- Capital Research Global, Capital Research Global Investors$9.85B · 1.5% of book
- Nelson Peltz, TRIAN FUND MANAGEMENT, L.P.$1.14B · 28.1% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$1.10B · 0.5% of book
- Ken Griffin, CITADEL ADVISORS LLC$554.19M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is GE Aerospace (GE) undervalued?
Against our discounted cash flow estimate of $240.00, GE at $345.73 is 31% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own GE?
28 of the institutions we track reported a position in GE in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GE's P/E ratio?
GE trades at 44.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for GE, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.