GE Stock, What is it Worth Today? Should I Buy GE Stock?

TL;DR

Analyzing the potential value of General Electric stock post-breakup based on sum of the parts valuation.

Transcript

hi i'm jimmy in this video we're looking at general electric stock ticker symbol ge now this isn't our typical stock analysis video because ge has announced that they are essentially breaking up their business into different smaller companies so the goal this video is to see if general electric stock is worth buying today as they spin off two of th... Read More

Key Insights

• ✊ GE is spinning off its businesses to create separate entities for healthcare, power, and aviation.
• 🥳 The sum of the parts valuation method is used to determine GE stock's potential value.
• 🎴 Debt levels and projected free cash flow margins play a significant role in valuing GE stock.
• ❓ Analyst estimates for revenue and historical data are essential in the valuation process.
• 🧚 GE's stock is currently trading below the potential fair value post-breakup.
• 🍉 The analysis indicates that GE could be an interesting long-term investment.
• 🧑‍💼 The spin-offs are expected to create value for shareholders through separate entities.

Questions & Answers

Q: How is GE changing its business structure?

GE is breaking up its business into separate companies for healthcare, power, and aviation through spin-offs.

Q: What valuation method is used to analyze GE stock?

The analysis is based on the sum of the parts valuation method, which values each business separately and totals them up.

Q: What are the key factors influencing GE's stock value?

Factors like revenue by segment, debt levels, projected free cash flow margins, and industry comparisons impact GE's stock value.

Q: What is the potential fair value for GE stock post-breakup?

The analysis suggests a fair value of around $140 per share using the sum of the parts valuation method.

Summary & Key Takeaways

• General Electric (GE) is breaking up its business into smaller companies.

• The analysis focuses on valuing GE stock based on the sum of the parts valuation method.

• GE's spin-offs will create separate entities for healthcare, power, and aviation businesses.