General Electric (GE) – Fundamental & Intrinsic Value
Base on latest quarter:
- PE = 12.8
- Dividend Yield = 4.8%
- Net Earning = 7.5% (10.5% in 2008)
- Current Ratio = 2.2
- ROA = 1.64% (2.18% in 2008 Full Year)
- ROE = 11.5% (15.7% in 2008 Full Year)
Intrinsic Value Calculation (DCF Model)
- 10 Year Average Growth Rate = 3.9%
- Discount Rate = 5%
- Number of Shares = 10,393 million
- TTM Net Operating Cash Flow = $36,064 million
- Intrinsic Value = $32.76
Stock Background
- 5 years historal high = $42.15
- Current Price = $17.00 (only 40% of 5 years high & 48% discount to Intrinsic Value of $32.76)
The stock price is currently above 20D, 50D and 200D MA. Strong support at $14.57.
My target entry level is between $15.00 to $15.50 when the stock price retraces back to the support level.
