Aerospace & Defense · NYSE
Current Price
$282.90
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on GE Aerospace with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
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.
Earnings Yield
2.95%
ROE (TTM)
46.4%
Based on trailing twelve-month data, GE has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether GE is overvalued depends on comparing its PE ratio to Aerospace & Defense peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value GE Aerospace using PE: (1) Compare the current PE against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 46.4%, 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.
