GE
GE Aerospace · Industrials · Aerospace & Defense
$341.84
52w 266.56 – 388.84
20y monthly, adjusted
Mkt cap
$354.7B
P/E
41.5
P/FCF
49.8
FCF yield
2.0%
ROE
46.6%
Shldr yield
2.1%
div 0.0% + bb 2.1%
What today's price assumes
At $354.7B, the market is pricing in 20.1% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew -5.3% per year — the price asks for acceleration beyond the historical record.
Simple DCF per-share range: $55 · $55 · $68 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 11.7× across 15 years, GE would trade near $97/share (25th–75th percentile: $49–$165); it trades at 41.5× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+16.3%
Rev 5y
−9.6%
Rev 10y
−9.0%
EPS 5y
+11.9%
EPS 10y
—
FCF 5y
+29.6%
FCF 10y
−5.3%
Fundamentals
Fiscal 2007–2025, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q2'26 | $13.3B | +21.1% | $2.4B | +16.9% | 2.26 | $3.2B |
| Q1'26 | $12.4B | +24.7% | $1.9B | −3.7% | 1.81 | $1.8B |
| Q4'25 * | $12.7B | +28.7% | $2.5B | +33.8% | 2.40 | $2.3B |
| Q3'25 | $12.2B | +36.2% | $2.2B | +16.5% | 2.02 | $2.5B |
| Q2'25 | $11.0B | +34.1% | $2.0B | +60.2% | 1.89 | $2.2B |
| Q1'25 | $9.9B | +23.0% | $2.0B | +28.5% | 1.83 | $1.5B |
| Q4'24 | $9.9B | +15.6% | $1.9B | +19.5% | 1.75 | $1.3B |
| Q3'24 | $8.9B | +5.7% | $1.9B | +426.1% | 1.70 | $1.5B |
| Q2'24 | $8.2B | +4.0% | $1.3B | +3736.4% | 1.15 | $911.0M |
| Q1'24 | $8.1B | +14.7% | $1.5B | −79.5% | 1.40 | $994.0M |
| Q4'23 | $8.5B | −46.7% | $1.6B | −27.7% | 1.44 | $3.1B |
| Q3'23 | $8.5B | −38.8% | $352.0M | +118.6% | 0.24 | $1.8B |
| Q2'23 | $7.9B | −40.8% | $33.0M | — | -0.02 | $485.0M |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +16.3% | −9.6% | −9.0% | −7.6% |
| Operating cash flow | +13.0% | +19.1% | −8.1% | −9.2% |
| Free cash flow | +16.9% | +29.6% | −5.3% | −8.2% |
| EPS (diluted) | +446.0% | +11.9% | −3.4% | −0.2% |
| Equity | −17.9% | −12.1% | −15.3% | −11.6% |
| LT debt | +0.2% | −21.8% | −17.8% | −16.3% |
| Diluted shares | −1.0% | −0.5% | −1.6% | — |
| Stock price | +56.1% | +39.8% | +9.8% | +12.4% |
$100, 3 years ago
$380vs $176 in SPY
56.1% vs 20.7%/yr
$100, 5 years ago
$533vs $181 in SPY
39.8% vs 12.6%/yr
$100, 10 years ago
$255vs $412 in SPY
9.8% vs 15.2%/yr
$100, 15 years ago
$580vs $813 in SPY
12.4% vs 15.0%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$14.40
$269.9B created / $18.7B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
21.8%
OCF ÷ (equity + debt)
OCF / EV yield
2.3%
MC vs 10× OCF
4.23
≤1 = priced under 10× OCF
Debt / FCF
2.8y
SBC / FCF
4.5%
Owner earnings
$6.9B
OCF − capex − SBC
OE yield
1.9%
Share count 5y
−1.6%
per year; negative = buybacks
Checklist
14 of 24 checks pass · 58%. Checks with structurally missing inputs are excluded.
Growth & Consistency
3/7
- fail
Revenue growth
-9.6% · 5y CAGR ≥ 5%
- pass
EPS growth
11.9% · 5y CAGR ≥ 5%
- pass
FCF growth
29.6% · 5y CAGR ≥ 5%
- fail
Revenue rises consistently
5 of 9 · up in ≥ 7 of last 10 years
- fail
FCF consistently positive
7 of 10 · positive in ≥ 8 of last 10 years
- fail
Profitable every year
6 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
19.1% vs -9.6% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
4/5
- pass
Net margin
19.0% · ≥ 8%
- na
Operating margin
— · ≥ 10%
- na
Gross margin stable or rising
— · no drop > 2 pts over 3y
- pass
Return on equity
46.6% · ≥ 12%
- pass
Cash ROIC
21.8% · ≥ 12%
- pass
FCF margin
15.8% · ≥ 5%
- fail
Earnings back their cash
OCF $8.5B vs NI $8.7B · OCF ≥ net income (latest FY)
Balance Sheet
3/4
- pass
Debt payable from cash flow
2.8y · LT debt ≤ 3× FCF
- pass
Cash cushion
61% · cash ≥ 50% of LT debt
- pass
Leverage
1.10 · LT debt ≤ 1.5× equity
- fail
Equity positive and compounding
$18.7B · equity > 0 and grew over ~5y
- na
Interest burden
— · interest ≤ 15% of operating income
Capital Allocation
3/4
- pass
Share count flat or shrinking
-1.6% · ≤ +0.5%/yr over ~5y
- pass
Stock comp restrained
4% · SBC ≤ 15% of FCF
- fail
Distributions funded by FCF
104% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
5 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
1/4
- fail
FCF yield
2.0% · ≥ 3%
- fail
Earnings multiple
41.5 · P/E ≤ 25
- fail
Price asks less than history delivered
20.1% vs -5.3% · implied FCF growth ≤ historical FCF CAGR
- pass
Shareholder yield
2.1% · dividends + buybacks ≥ 2% of market cap
Red flags
Mechanical checks — a flag is a question to investigate, not a verdict
Distributions exceed FCF
Dividends plus buybacks exceeded free cash flow in the latest fiscal year.
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 45,855 | — | — | 8,704 | 8.14 | 8,537 | 1,273 | 7,264 | — | 7,551 | 325 | 12,392 | 20,469 | 18,677 | 1,068 |
| 2024 | 38,702 | — | — | 6,556 | 5.99 | 4,710 | 1,032 | 3,678 | — | 5,827 | 286 | 13,619 | 19,273 | 19,342 | 1,094 |
| 2023 | 35,348 | — | — | 9,482 | 8.36 | 5,189 | 862 | 4,327 | — | 1,233 | 192 | 15,204 | 20,862 | 27,403 | 1,099 |
| 2022 | 29,139 | — | — | 336 | 0.05 | 5,917 | 1,371 | 4,546 | — | 1,048 | 143 | 15,810 | 20,320 | 33,696 | 1,101 |
| 2021 | 56,469 | — | — | -6,337 | -6.00 | 3,481 | 1,250 | 2,231 | — | 107 | 305 | 15,770 | 30,824 | 40,310 | 1,098 |
| 2020 | 75,833 | — | — | 5,704 | 4.63 | 3,568 | 1,579 | 1,989 | — | — | 353 | 36,530 | 70,189 | 35,552 | 1,095 |
| 2019 | 90,221 | — | — | -4,979 | -4.99 | 8,734 | 2,216 | 6,518 | — | — | 400 | 35,811 | 67,241 | 28,316 | 1,091 |
| 2018 | 113,543 | — | — | -22,355 | -20.87 | 4,978 | 6,627 | -1,649 | — | — | 336 | 31,124 | 88,949 | 30,981 | 1,091 |
| 2017 | 110,968 | — | — | -8,484 | -8.21 | 6,554 | 6,642 | -88 | 4,016 | — | — | 43,299 | 108,575 | 56,031 | 1,090 |
| 2016 | 110,171 | — | — | 7,500 | 5.97 | 1,160 | 7,199 | -6,039 | 20,095 | -22,581 | — | 48,129 | 105,080 | 70,162 | 1,146 |
| 2015 | 117,386 | — | — | -6,126 | -4.86 | 19,891 | 7,309 | 12,582 | — | -2,709 | — | 70,483 | 144,659 | 98,274 | 1,257 |
| 2014 | 117,184 | — | — | 15,233 | 11.95 | 27,709 | 7,134 | 20,575 | — | -2,211 | — | — | 186,596 | 128,159 | 1,271 |
| 2013 | 113,245 | — | — | 13,057 | 10.12 | 28,510 | 6,754 | 21,756 | — | -10,225 | — | — | 221,665 | 130,566 | 1,292 |
| 2012 | 112,588 | — | 22,887 | 13,641 | 10.28 | 31,331 | 15,119 | 16,212 | — | -5,005 | — | — | 236,084 | 123,026 | 1,326 |
| 2011 | 110,062 | — | 20,652 | 14,151 | 9.80 | 33,359 | 12,637 | 20,722 | — | — | — | 84,501 | 243,459 | 116,438 | 1,330 |
| 2010 | 148,875 | — | 17,250 | 11,644 | 8.44 | 36,124 | 9,800 | 26,324 | — | — | — | 78,943 | 293,323 | 118,936 | — |
| 2009 | 154,396 | — | 15,605 | 11,025 | 8.05 | 24,417 | 8,636 | 15,781 | — | — | — | 70,479 | 336,172 | 117,291 | — |
| 2008 | 179,769 | — | 21,850 | 17,410 | 13.70 | 48,653 | 16,010 | 32,643 | — | — | — | 48,112 | 322,847 | 104,665 | — |
| 2007 | 169,964 | — | 25,614 | 22,208 | 17.29 | 43,322 | 17,803 | 25,519 | — | — | — | 15,731 | — | 115,559 | — |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.