Is GE HealthCare Technologies Inc. (GEHC) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $84.03, GE HealthCare Technologies Inc. (GEHC) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $41.02 and $130.35 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
The valuation discounts GE HealthCare Technologies Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.3%, with a long-run terminal growth rate of 2.5%. About 78% 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 — the market is implying roughly 4.5% annual revenue growth for GEHC. Our base case instead compounds to about 4.3% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, GEHC's modeled DCF value ranges from about $38.21 to $130.74 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 HealthCare Technologies Inc. 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 GEHC's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind GEHC's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $20,625,000,000 | GE HealthCare 4Q/FY2025 earnings release, 8-K Ex-99 (accession 0001932393-26-000006, filed 2026-02-04); FY2025 10-K (accession 0001932393-26-000007): Total revenues FY2025 $20,625M, +4.8% on FY2024's $19,672M (organic +3.5%; the rest is FX and the Nihon Medi-Physics and icometrix acquisitions). CROSS-CHECK, H1 2026 (Q2 release, accession 0001932393-26-000045): revenue $10,425M, +6.6% reported and +3.2% organic, with $205M of FX tailwind and ~$122M from acquisitions (mainly Intelerad, closed 2026-03-18). Calendar fiscal year, so FY2025 is the latest completed year with a filed 10-K. |
| Base EBIT margin | 13.4% | GE HealthCare 4Q/FY2025 earnings release, 8-K Ex-99 (accession 0001932393-26-000006): GAAP OPERATING INCOME, not the company's 'Adjusted EBIT'. FY2025 operating income $2,763M / revenue $20,625M = 13.40%. This line is BEFORE non-operating pension income ($288M in FY2025, a non-cash expected-return credit, deliberately excluded because the pension deficit is carried in net debt instead) and before 'other income' ($157M, of which $112M was investment revaluation gains). It INCLUDES and keeps as real costs: restructuring $120M (it has been $120M in each of the last two years — recurring, not one-off), acquisition charges $39M, spin-off costs $38M (now ~zero; leaving them in costs ~0.2pt in the base only), the ~$245M tariff hit, and $156M of acquired-intangible amortization. Management's Adjusted EBIT margin for the same year was 15.3% ($3,155M) — the ~1.9pt gap is exactly those add-backs plus the other-income line. CROSS-CHECK, H1 2026: operating income $1,254M / $10,425M = 12.0% (H1 2025: 13.1%), and that includes $106M of IEEPA tariff refunds relating to 2025 — ex-refund 11.0%. H1 is seasonally weak at GEHC (H2 2025 ran 13.7%). |
| Forecast revenue growth | 6% → 4% → 4% → 4% → 4% | 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. Program-wide input shared by every researched model in this run. |
| Beta | 0.85 | Yahoo Finance / yfinance published beta (5Y monthly): Published beta 0.848, rounded to 0.85 — NOT normalized. Caveat: GEHC only began trading on 2023-01-04, so the '5Y' regression has under four years (~45 monthly points) of real history. 0.85 sits inside the range typical of large diversified medtech, so I see no stated reason to move it. Each +0.1 of beta is worth roughly -$5.5/share (beta 1.0 gives ~$56). |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP). Reasonable for medical imaging, where ageing populations and procedure growth have historically supported mid-single-digit equipment demand; well below the 8.30% WACC. A 2.0% terminal rate takes ~$6/share off. |
| Diluted shares | 454M | GE HealthCare Q2 2026 10-Q (accession 0001932393-26-000046, filed 2026-07-29): Q2 2026 weighted-average diluted shares 454M (H1 456M; FY2025 458M). Slightly conservative: GEHC bought back 4.7M shares for $300M in H1 2026 and 451.7M were outstanding at 2026-06-30 (459.5M issued less 7.8M treasury); $500M remains on the April 2025 authorization. Dilution from SBC ($130M in FY2025) is small. |
| Market price | $84.03 | Delayed quote · as of 2026-11-10 05:27 UTC |
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Most undervalued stocks (per our valuation) · Undervalued Healthcare stocks · All valued stocks · Interactive GEHC 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.