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.

Leave a Reply