GEHC
GE HealthCare Technologies Inc.
$61.00
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 4.9% below fair value
You pay
$61.00
Bear
$51.29
Fair
$64.11
Bull
$76.94
Bear
$51.29
-15.9%
$4.74 × 10x P/E
Fair
$64.11
+5.1%
$4.74 × 12x P/E
Bull
$76.94
+26.1%
$4.74 × 15x P/E
Key Value Driver
Normalized P/E multiple (12x base case)
Implied Market Multiple
12.9x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $78.58 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $64.11 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples