How Much Is GE Worth?
Energy conglomerate General Electric (NYSE: GE) has shaken things up a bit in recent years, such as when it suddenly removed CEO John Flannery from his position on Oct. 1, 2018. The change sent GE stock surging more than 13%, putting the company on track for its biggest single-day gain since March 2009, according to MarketWatch — a welcome sight after years of profit loss and competition from renewable resources.
The next couple of years saw an overall downward trend, when two years of negative profits dragged down the stock, but things began looking up when the stock rallied in late 2020. It’s now outperforming the S&P 500 Index and currently has strong institutional support, Investor’s Business Daily reported. One factor could be the 1-for-8 reverse stock split the company implemented in late July, pushing share prices above $100. Companies sometimes use a reverse split to drive share prices to levels more likely to draw investors.
Investors will know more about the company’s financials following the next earnings report, which is expected to be released on Oct. 26. Until then, here are some numbers to help you figure out whether you should put your faith in one of the largest industrial companies in the U.S.
|GE: Company Snapshot|
|CEO Larry Culp’s Salary||$73 million (2020)|
|How Much Is GE Worth?|
|Share Price, 52-Week Range||$55.52-$115.36|
|2020 Revenue||$79.619 billion|
|2020 Profit||$5.704 billion|
|GOBankingRates’ Evaluation of GE’s Net Worth||$44.810 billion|
GE’s Market Cap: $113.224B
Market capitalization is determined by the total dollar value of a company’s outstanding shares, which helps investors determine the relative size of a company. As of Oct. 21, GE’s share price is $103.15, giving the company a market capitalization of $113.224 billion. GE’s market cap reflects how the market as a whole values the company.
GE’s Net Worth: $44.810B
Although market cap can give you a sense of how much the market values a company, you should keep in mind that it’s based entirely on market sentiment — essentially reflecting the frequently changing opinions of investors. The GOBankingRates Evaluation, on the other hand, calculates a company’s net worth based on measurable figures like assets and revenue. It’s a more conservative valuation than the market value, taking into account full-year profits and revenue from the last three years, as well as the company’s assets and debts.
Based on GE’s revenue and profits from the last three years, the company is worth over $44.810 billion.
GE’s CEO: Larry Culp
GE installed Larry Culp as its new CEO after Flannery’s ouster. Having previously served as industrial manufacturing company Danaher’s CEO, Culp was the first outsider to helm GE in its more than 120 years of operation.
Culp, 58, was tasked with accelerating the company’s plan to streamline, which Flannery was criticized for handling too slowly, reported Bloomberg. Culp is credited with successfully expanding Danaher, a global science and technology company, over the course of 14 years. Over 90% of the transactions Culp handled during that time were company takeovers, according to Bloomberg.
In May, GE shareholders rejected a pay plan for Culp that would have earned him as much as $230 million in 2020 while lowering his performance metrics, CFO Magazine reported. His $73 million salary for 2020 was one of the highest among CEOs of publicly traded companies.
Should You Invest In GE Stock?
Although things are improving for GE, the company still has ways to go before it completely restores the faith of its investors. The upcoming earnings report will help if it shows momentum in GE’s return to profitability. In the meantime, most analysts are recommending to either buy or hold on to GE stock, so perhaps the optimism is contagious.
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Daria Uhlig contributed to the reporting for this article.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
Data is accurate as of Oct. 15, 2021, unless otherwise noted, and subject to change.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Investor's Business Daily. 2021. "Is GE Stock A Buy After Q2 Earnings Beat?"
- InvestorPlace. 2021. "3 Reasons to Buy General Electric Stock Right Now."
- Barron's. 2021. "Larry Culp Is Building a Leaner, Meaner, More Profitable GE."
- CFO Magazine. 2021. "GE Shareholders Reject Pay Plan for CEO Culp."