Current Price
$309.39
PE Ratio (TTM)
35.6x
Intrinsic Value
$416.75
+25.8% margin of safety
What Is GE Aerospace's Fair Value?
As of 2026-10-06, applying a 35.3x earnings multiple to GE Aerospace's (GE) earnings per share of $8.77 yields a fair value estimate of $416.75 per share, versus a market price of $309.39.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $354.34 to $487.05. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · GE intrinsic value (DCF view)
Is GE Aerospace (GE) Overvalued?
At $309.39, GE trades about 25.8% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Dominant Commercial Engine Market Share
GE Aerospace holds a commanding position in the commercial aircraft engine market. This scale provides significant advantages in R&D, manufacturing efficiency, and aftermarket services.
↑Long-Term Service Agreements
Extensive long-term service agreements create high switching costs for airlines. These contracts lock in aftermarket revenue and customer loyalty for decades.
↑Defense Sector Relationships
Deeply entrenched relationships with defense contractors and governments offer a stable, recurring revenue stream. These partnerships are difficult for competitors to replicate.
INVESTMENT RISKS
↓Geopolitical Instability
Global conflicts and trade tensions can disrupt air travel and defense spending. This uncertainty poses a risk to GE's revenue streams and future order book.
↓Technological Disruption
Emerging technologies like sustainable aviation fuels and electric propulsion could eventually alter the aerospace landscape. GE must adapt to these shifts to maintain its competitive edge.
↓Regulatory Scrutiny
The aerospace industry faces stringent safety and environmental regulations. Changes in these regulations could increase compliance costs and impact product development.
Base case
GE base case PE valuation
Intrinsic Value
$416.75
Margin of safety
+25.8%
Expected annual return
+6.1%
Base case assumptions: 13.9% annual earnings growth, 35.28x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the GE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for GE Aerospace respond.
Open PE Calculator for GECompany Overview
Based in Evendale, Ohio, GE Aerospace is a prominent American aviation enterprise with roots tracing back to its 1878 founding by Thomas Alva Edison. The company specializes in manufacturing and supplying jet and turboprop engines, along with integrated systems, for an extensive range of aircraft, including those in commercial, military, business, and general aviation use. Its robust brand lineup features Avio Aero, Unison, GE Additive, and Dowty Propellers. GE Aerospace organizes its activities into two core segments: Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services division oversees the design, development, production, and maintenance of jet engines for commercial airframes, business aviation, and aeroderivative applications. Meanwhile, the Defense & Propulsion Technologies segment is dedicated to providing vital engines and critical systems for defense-related aerospace needs.
Financial Metrics — GE PE Stock Valuation Data
PE Ratio (TTM)
35.6x
PEG Ratio
2.00
Earnings Yield
2.84%
ROE (TTM)
49.0%
Revenue/Share (TTM)
$48.75
Dividend Yield
0.58%
Debt/Equity
1.09x
Frequently Asked Questions
What is the PE ratio of GE?
The trailing twelve-month PE ratio of GE reflects how much investors pay per dollar of GE Aerospace's earnings. This metric is most useful when compared to Aerospace & Defense peers and the company's own historical range.
Is GE overvalued based on PE ratio?
GE's PE of 35.6x combined with a PEG ratio of 2.00 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Aerospace & Defense, a DCF analysis may be more appropriate.
How do I value GE stock using PE ratio?
To value GE Aerospace using PE: (1) Compare the current PE (35.6x) against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio (2.00) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of GE?
GE's PEG ratio is 2.00, calculated by dividing the PE ratio (35.6x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for GE stock valuation?
PE ratio gives a quick relative read — how GE is priced versus Aerospace & Defense peers. DCF provides an absolute value based on projected free cash flows. For GE, with a strong ROE of 49.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See GE DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value GE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.