GEV GE Vernova Inc.
$1,038.74
Stable Earnings Power 85%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 79.2% above fair value

You pay $1,038.74
Bear $474.19
Fair $579.58
Bull $684.96
Bear $474.19 -54.3% $18.16 × 18x P/E
Fair $579.58 -44.2% $18.16 × 22x P/E
Bull $684.96 -34.1% $18.16 × 26x P/E

Key Value Driver

Normalized P/E multiple (22x base case)

Implied Market Multiple 57.2x

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 $1119.95 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $579.58 per share.

Warnings

Wall Street's average price target is $1119.95 (from 28 analysts). Our estimate is 64% 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