Aerospace & Defense · NYSE
Current Price
$283.57
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on GE Aerospace with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
GE Aerospace is an American aircraft company, which engages in the provision of jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. The firm's portfolio of brands includes Avio Aero, Unison, GE Additive, and Dowty Propellers. It operates through the Commercial Engines & Services and Defense & Propulsion Technologies segments. The Commercial Engines & Services segment is involved in the design, development, manufacturing, and servicing of jet engines for commercial airframes, as well as business aviation and aeroderivative applications. The Defense & Propulsion Technologies segment offers defense engines and critical aircraft systems. The company was founded by Thomas Alva Edison in 1878 and is headquartered in Evendale, OH.
ROIC (TTM)
8.5%
ROE (TTM)
46.4%
FCF Yield
2.52%
Based on trailing twelve-month data, GE shows a free cash flow per share of N/A and a ROIC of 8.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.52% are important context metrics when evaluating GE's stock valuation relative to peers.
The intrinsic value of GE depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether GE is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $283.57. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on GE Aerospace: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Aerospace & Defense industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting GE's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For GE Aerospace, this means projecting how much free cash flow the Aerospace & Defense will produce over the next 5-10 years, then discounting those amounts to today's dollars. GE's ROIC of 8.5% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For GE, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
