General Electric Company (GE) receives a weak valuation score of 3 from InvestorsObserver's analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. GE holds a better value than 3% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.
Metrics Analysis
GE has a trailing twelve month Price to Earnings (PE) ratio of 23.4 which places it above the histroical average of roughly 15. GE is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. GE's trailing-12-month earnings per share (EPS) of 0.58 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
GE has a 12 month forward PE to Growth (PEG) ratio of 12.95. Markets are undervaluing GE in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. 0.579999983's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
Summary
GE's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. GE's PE and PEG are worse than the market average resulting in a below average valuation score.
Click Here to get the full Stock Score Report on General Electric Company (GE) Stock.
