Is GE HealthCare Technologies Inc. (GEHC) overvalued?
On Equity Rank's model estimate, GEHC trades 18% below its fair value. GE HealthCare Technologies Inc. (GEHC) last closed at $82.38; the multi-method model fair value is $100.54.
| Price | Model fair value | Price vs model |
|---|---|---|
| $82.38 | $100.54 | 18% below |
What the answer rests on
- 5 of 12 valuation methods put GEHC's value above its price and 7 put it below, so the methods disagree.
- To justify today's price, GEHC's free cash flow would need to grow about 7.4% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -5.8% a year.
- GEHC trades at 17.7 times its last year's earnings, against a median of 31.3 for 37 profitable Medical Devices companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 54% below to 9% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind GEHC's fair value · What prices assume · Other companies