GEV
GE Vernova Inc.
$943.38
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 56.4% above fair value
You pay
$943.38
Bear
$493.56
Fair
$603.23
Bull
$712.91
Bear
$493.56
-47.7%
$18.16 × 18x P/E
Fair
$603.23
-36.1%
$18.16 × 22x P/E
Bull
$712.91
-24.4%
$18.16 × 26x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
51.9x
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 $1214.31 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $603.23 per share.
Warnings
Wall Street's average price target is $1214.31 (from 29 analysts). Our estimate is 67% 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