GE — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($342.26)
DCF	$528.11	+54.3%
Graham Number	$56.76	-83.4%
Reverse DCF	—	implied g: 29.5%
DDM	$38.73	-88.7%
EV/EBITDA	$342.47	+0.1%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.21B

Near-term growth (yrs 1–5)(%)Rev: 17.6% / EPS: 37.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.24%

Computed WACC: 11.24%

Cost of equity (Re)11.91%(Rf 4.30% + β 1.38 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.37%

Debt weight (D/V)5.63%

Results

Intrinsic Value / share$358.69

Current Price$342.26

Upside / Downside+4.8%

Net Debt (used)$9.56B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	29.4%	33.4%	37.4%	41.4%	45.4%
7.0%	$616.94	$717.35	$830.40	$957.22	$1099.07
8.0%	$483.85	$562.44	$650.87	$750.06	$860.96
9.0%	$392.82	$456.49	$528.11	$608.41	$698.16
10.0%	$326.94	$379.82	$439.29	$505.94	$580.41
11.0%	$277.27	$322.03	$372.35	$428.72	$491.69

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $8.04

Book Value / share($)Yahoo: $17.81

Results

Graham Number$56.76

Current Price$342.26

Margin of Safety-83.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.24%

Terminal growth rate(%)

Computed WACC: 11.24%

Cost of equity (Re)11.91%(Rf 4.30% + β 1.38 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.37%

Debt weight (D/V)5.63%

Results

Current Price$342.26

Implied Near-term FCF Growth36.5%

Historical Revenue Growth17.6%

Historical Earnings Growth37.4%

Base FCF (TTM)$5.21B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$38.73

Current Price$342.26

Upside / Downside-88.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $10.70B

Target EV/EBITDA multipleCurrent: 34.5×

Net Debt($B)Default: $9.56B

Results

Implied Equity Value / share$342.47

Current Price$342.26

Upside / Downside+0.1%

Implied EV$368.75B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$5.56B	$7.56B	$9.56B	$11.56B	$13.56B
30.5x	$305.46	$303.56	$301.65	$299.74	$297.84
32.5x	$325.87	$323.97	$322.06	$320.15	$318.24
34.5x	$346.28	$344.38	$342.47	$340.56	$338.65
36.5x	$366.69	$364.78	$362.88	$360.97	$359.06
38.5x	$387.10	$385.19	$383.29	$381.38	$379.47

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