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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
380.39%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $77.15 |
380.39%
|
Valuecruncher | 19 Nov 2008 | 1 |
| $37.74 |
135.58%
|
dweis | 17 Nov 2008 | 4 |
| $63.76 |
226.81%
|
wyomingkid | 01 Nov 2008 | 7 |
| $21.62 |
14.03%
|
Derek | 23 Oct 2008 | 8 |
| $20.88 |
 -18.12%
|
GordonGekko | 02 Oct 2008 | 23 |
| $11.23 |
-55.52%
|
peypar | 27 Sep 2008 | 39 |
| $24.95 |
-6.27%
|
GordonGekko | 22 Sep 2008 | 24 |
| $46.68 |
66.12%
|
Ashkat | 01 Sep 2008 | 22 |
| $26.49 |
-7.73%
|
KiwiEMH | 27 Jul 2008 | 42 |
| $27.01 |
-1.35%
|
GordonGekko | 09 Jul 2008 | 39 |
| $36.16 |
32.07%
|
TheCrunchBlog | 22 Jun 2008 | 1081 |
| $29.39 |
7.34%
|
GordonGekko | 22 Jun 2008 | 47 |
| $31.30 |
0.94%
|
GordonGekko | 23 May 2008 | 43 |
Recent Comments
| Updated: | 4 hours ago |
| Ticker: | GE |
| Market: | NYSE |
Completely agree - especially re the situation in GE Finance. If GE Finance is "OK" then GE looks undervalued. But if there are nasty surprises there (and that is hard to make a call on right now) - that changes everything.
Valuation very sensitive to choice of discount rate!
Bottom line earnings are not just a function of profitability margin.
They will be impacted by loss provisions/asset writedowns of the Finance Group.
Incrased cost of capital will pressure income.
This is a great analysis of GE's issues with their substantial lending operations:
http://www.nytimes.com/2008/09/22/business/22ge.html?pagewanted=1&_r=1&ref=business
“With the tsunami sweeping over the financial sector, it is unrealistic to expect that G.E. will not get wet.”
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/06/has-the-negative-sentiment-on-ge-gone-too-far/
GE grew revenues from US$134.3 billion in 2004 to US$172.7 billion in 2007 – 8.75% compound annual growth rate. Our assumptions of revenues for the next three years are US$187.5 billion in 2008 growing to US$206.5 billion in 2010 – 6.1% compound annual growth rate. We have projected EBITDA margins increasing from 23.5% in 2008 to 24.5% in 2010.
We have used a terminal growth rate of 2.5%. We calculated this terminal growth rate based on year three growth (2009 to 2010) of 5% dropping to a 2% stable growth rate over the next ten years.
We have used a WACC (discount rate) of 6.5%. The WACC (discount rate) has a material impact on a discounted cash flow valuation (as does the terminal growth rate). We think this WACC of 6.5% is reasonable but recognise that the actual number could be as low as 5.5% or as high as 7.5-8%.
We used a terminal capital expenditure number of US$4.0 billion.