We publish no single base value for GE Aerospace. Our valuation methods put it between $236.38 and $280.15 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $236.38 | -28.6% | free cash flow $7.96bn, growth 15.9% for 5 years, then fading to 3% over 5 more, discounted at 10.75%; plus net cash $24.39 a share; stress floor $130.23 |
| Exit multiple (P/E) | $280.15 | -15.3% | earnings per share $8.16 valued at 36.43× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: 'Commercial Engines & Services' matches no business kind in the house table, so it cannot be valued. The rest are not published without it — a sum missing a part reads as a valuation and is simply wrong |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.43 (5 years of monthly returns against the S&P 500; standard error 0.22) |
| Peer beta | 0.47 (median of 11 S&P 500 Aerospace & Defense companies) |
| Blend of own and peers | 1.37 (94% own, 6% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.25 (0.67 × 1.37 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 10.75% |
Free cash flow grows 15.90% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $7.96bn | — | — |
| Year 1 | 15.90% | $9.23bn | 0.9029 | $8.33bn |
| Year 2 | 15.90% | $10.70bn | 0.8152 | $8.72bn |
| Year 3 | 15.90% | $12.40bn | 0.7361 | $9.13bn |
| Year 4 | 15.90% | $14.37bn | 0.6646 | $9.55bn |
| Year 5 | 15.90% | $16.65bn | 0.6000 | $9.99bn |
| Year 6 | 13.75% | $18.94bn | 0.5418 | $10.26bn |
| Year 7 | 11.60% | $21.14bn | 0.4892 | $10.34bn |
| Year 8 | 9.45% | $23.14bn | 0.4417 | $10.22bn |
| Year 9 | 7.30% | $24.83bn | 0.3988 | $9.90bn |
| Year 10 | 5.15% | $26.11bn | 0.3601 | $9.40bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (10.75% − 3%) | $346.73bn |
| Terminal value in today's money | $124.84bn |
| Present value of years 1–10 | $95.84bn |
| Total present value | $220.68bn |
| Shares outstanding | 1.04bn |
| Cash flows per share = total ÷ shares | $211.99 |
| Plus net cash per share | $24.39 |
| Value per share | $236.38 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 10.9% | Growth 15.9% | Growth 20.9% |
|---|---|---|---|
| 9.75% | — | $272.07 | $353.41 |
| 10.75% | — | $236.38 | $304.54 |
| 11.75% | — | $209.03 | $267.15 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.43 | 11.56% | $213.72 |
| Peer beta | 0.47 | 7.24% | $437.55 |
| Adjusted beta (used) | 1.25 | 10.75% | $236.38 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $8.16 |
| Year 1 | 15.90% | $9.46 |
| Year 2 | 11.38% | $10.53 |
| Year 3 | 8.45% | $11.42 |
| Year 4 | 6.54% | $12.17 |
| Year 5 | 5.30% | $12.82 |
| Earnings per share in year 5 | $12.82 |
| Exit P/E (the stock's own median P/E) | 36.43× |
| Value in 5 years = earnings × P/E | $466.87 |
| Discounted at 10.75% over 5 years: ÷ 1.6665 | $280.15 |
We publish no single base value for GE Aerospace. Our valuation methods put it between $236.38 and $280.15 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $226.16 and a 10% chance it is above $534.02 in a year; a 56% chance it is higher than today's $330.86, from 33.35% volatility. The simulation assumes the price drifts up at our discount rate of 10.75% a year.
At $330.86 the price implies free cash flow growing 22.5% a year for five years and then fading toward 3% over five more; its revenue has grown 15.9%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $309.56 | — |
| 9 Oct 2026 | $308.20 | — |
| 16 Oct 2026 | $313.83 | — |
| 23 Oct 2026 | $285.64 | — |
| 30 Oct 2026 | $301.80 | — |
| 6 Nov 2026 | $323.24 | — |
| 12 Nov 2026 | $330.86 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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