General Eletric

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Stifel Nicolaus Robert P. McCarthy mccarthyr@stifel.com
Credit Suisse Julian Mitchell julian.mitchell@credit-suisse.com
Bernstein Research Steven E. Winoker steven.winoker@bernstein.com
Deutsche Bank Research John G. Inch john.inch@db.com
RBC Capital Markets Deane M. Dray deane.dray@rbccm.com
Oppenheimer Christopher Glynn christopher.glynn@opco.com
William Blair Nicholas P. Heymann nheymann@williamblair.com
Langenberg, LLC Brian K. Langenberg brian@langenberg-llc.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT  11,608 9,060 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF  12,582  (7,443) FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS  3,396 (220) TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 387,580 283,603 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 2.99% 3.19% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv (131,165) (97,141) NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR -1,129.98% -1,072.16% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket  4.89% 6.45% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook     6.23%     7.43%
Enterprise value
EVMarket  371,973  368,814 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook    369,147    333,635
Long-Run Growth
g = IR x ROIC
  -33.84%    -34.25% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP     2.50%     2.50%
Margin from Operations M    14.59%    11.63% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D    26.68%    32.90% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 3.04  3.08  -42.15%  17.28%  -444.48%  12.17%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

15.27 17.75 -42.15% 17.28% -444.48% 12.17%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

32.05 40.71 -42.15% 17.28% -444.48% 12.17%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

29.56 -49.55 -42.15% 17.28% -444.48%  12.17%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

20.83 26.46 -42.15% 17.28% -444.48% 12.17%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

 0.96  1.30 C-42.15% 17.28% -444.48% 12.17%

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