GEHC
GE HealthCare Technologies Inc.
$64.23
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 1.6% below fair value
You pay
$64.23
Bear
$52.23
Fair
$65.28
Bull
$78.34
Bear
$52.23
-18.7%
$4.74 × 10x P/E
Fair
$65.28
+1.6%
$4.74 × 12x P/E
Bull
$78.34
+22.0%
$4.74 × 15x P/E
Key Value Driver
Normalized P/E multiple (12x base case)
Implied Market Multiple
13.5x
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 $83.27 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $65.28 per share.
Warnings
Wall Street's average price target is $83.27 (from 18 analysts). Our estimate is 29% below the consensus -- consider that gap carefully.
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