Is GE Aerospace (General Electric Company) (GE) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $335.54, GE Aerospace (General Electric Company) (GE) trades 168% above TickerWorth's blended fair value of $125.20 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices GE overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -62.7% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values GE at about $109.17 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts GE Aerospace (General Electric Company)'s projected free cash flows at a weighted-average cost of capital (WACC) of 11.6%, with a long-run terminal growth rate of 2.5%. About 70% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — GE would need sustained revenue growth of more than 25%/yr to justify today's price, against about 12.3% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, GE's modeled DCF value ranges from about $84.38 to $152.54 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what GE Aerospace (General Electric Company) would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of GE's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind GE's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $42,322,000,000 | GE Aerospace 4Q 2025 earnings release, 8-K Ex-99 filed 2026-01-22 (accession 0000040545-26-000005) + GE Aerospace FY2025 10-K (accession 0000040545-26-000008, filed 2026-01-29): ADJUSTED revenue = total GAAP revenue $45,855M less run-off insurance revenue $3,533M (Sales of equipment $12,159M + Sales of services $30,163M, 10-K Statement of Operations). +21% on FY2024's $35,121M. POST-BREAKUP BY CONSTRUCTION: GE HealthCare was spun in January 2023 and GE Vernova on 2024-04-02; both sit in discontinued operations (10-K Note 2), so FY2025 continuing revenue contains neither. The only discontinued items left are Bank BPH (Poland) and trailing liabilities, handled in the bridge. Insurance is stripped because the run-off is treated as a separate, zero-valued block (special_cases) — its revenue must not be grown at an aerospace rate. Mix (company's 2026 segment recast, 4Q25 release): CES $31.9B of which SERVICES $24.2B (~76% of CES), equipment $7.7B; DPT $12.2B. CROSS-CHECK: H1 2026 adjusted revenue $24,248M, +27% YoY (10-Q / 2Q release); the base is unchanged and the quarter goes into Year 1. |
| Base EBIT margin | 19.9% | GE Aerospace FY2025 10-K (accession 0000040545-26-000008, filed 2026-01-29) + GE Aerospace 4Q 2025 earnings release, 8-K Ex-99 filed 2026-01-22 (accession 0000040545-26-000005): DERIVED, and deliberately BELOW management's figure. Management's non-GAAP operating profit was $9,055M (21.4%), which already excludes insurance, interest expense, the non-cash pension credit ($788M non-operating benefit income), separation costs, restructuring and equity-security marks. But it INCLUDES 'adjusted other income' of $1,339M, and that contains net interest and investment income. 10-K Note 19: other net interest and investment income $946M, of which $295M was the BETA Technologies investment gain that management already strips out via its $312M 'gains on retained/sold ownership interests and equity securities' line — leaving ~$651M of interest/investment income inside operating profit. Interest on GE's cash belongs in the net-debt bridge, not in EBIT (counting it twice would overstate value), so: $9,055M - $651M = $8,404M / $42,322M = 19.86%. Licensing ($175M) and equity-method income ($216M, mainly engine JVs 'closely aligned with our operations') STAY in EBIT. SBC ($325M) is expensed inside it. CROSS-CHECK, H1 2026 on the same basis: operating profit $5,274M less net interest & investment income of $290M ($28M reported + $262M BETA mark-down added back, 10-Q Note 18) = $4,984M / $24,248M = 20.55%. Management's own margin fell 160bp YoY in H1 (23.4% -> 21.8%) on LEAP/GE9X install growth, investments and inflation — services carry the margin; new engines dilute it. |
| Forecast revenue growth | 18% → 14% → 12% → 10% → 8% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; shared by every model in this tracker. |
| Beta | 1.35 | yfinance 'beta' (Yahoo 5Y monthly), cross-checked by own regression: Published 1.35, USED AS IS — and the biggest single lever in this model. Checked because GE's return series is broken by two spin-offs (GE HealthCare Jan 2023, GE Vernova Apr 2024) and the old conglomerate sits in the 5-year window: my own regression on total-return prices vs SPY gives 1.43 (5Y monthly), 1.36 (weekly since the 2024-04-02 Vernova spin, 130 obs) and 1.19 (monthly since the spin, only 30 obs). The post-spin weekly figure confirms the published one, so the high beta is the aerospace pure-play's, not a spin artefact. Peers measured the same way since April 2024: Howmet 1.26 weekly, Safran ADR 0.92, RTX 0.63. No normalization. If you think GE's real risk is closer to Safran's, beta 1.0 gives ~$138/share — still far below the price. |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. FLAG — this is the input that most disadvantages GE specifically: a jet engine earns aftermarket revenue for 25-30 years after delivery, and LEAP's fleet is still young, so a business still compounding at 8% in 2030 is cut to 2.5% in 2031. The reverse read: the price needs ~8.7% growth FOREVER after 2030, so even a much longer runway does not on its own close the gap. Must stay < WACC 11.59%. |
| Diluted shares | 1,047M | GE Aerospace Q2 2026 10-Q (accession 0000040545-26-000049, filed 2026-07-16) Note 17: Q2 2026 weighted-average diluted shares 1,047M (XBRL WeightedAverageNumberOfDilutedSharesOutstanding, 2026-04-01 to 06-30); H1 2026 1,050M; FY2025 1,068M. 1,037.6M were outstanding at 2026-06-30. The count is FALLING: GE repurchased 14.1M shares for $4,223M in H1 2026 under a $20B authorization. The diluted count is used to carry SBC dilution. Q3 buybacks (not yet reported) will lower it further and raise net debt by roughly the same value — not rolled forward. |
| Market price | $335.54 | Delayed quote · as of 2026-11-10 05:03 UTC |
Explore more
Most undervalued stocks (per our valuation) · Undervalued Industrials stocks · All valued stocks · Interactive GE valuation & downloadable modelTickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.