Company name General Electric Company
Stock ticker GE
Live stock price [stckqut]GE[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $17.21
Target stock price (averages with growth) $21.4
Target stock price (averages with no growth) $21.38
Target stock price (manual assumptions) $21.75

The following company description is from Google Finance: http://www.google.com/finance?q=ge

General Electric Company (GE) is a diversified technology and financial services company. The products and services of the Company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. It serves customers in more than 100 countries. In August 2013, General Electric Company completed the acquisition of the aviation business of Ario S.p.A. In February 2014, General Electric Co’s GE Oil & Gas launched its new Downstream Technology Solutions business to supply equipment and services to the $10 bln refining, petrochemical, industrial and distributed gas segments. In February 2014, General Electric Company completed the acquisition of API Healthcare.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in General Electric Company.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $24.94

Growth: 0.08

Current EPS (TTM): $1.49

P/E: 16

Future EPS Calc: $2.18

Future Stock Price Calc: $35.02

Target stock price: $21.75

I hope that this makes you a better investor. [/s2If]