General Electric Breakup Redux (NYSE:GE)

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Several months ago, I wrote an article detailing the breakup plan for General Electric (NYSE:GE). Now that the dust has settled after the first spin-off, this analysis will revisit the current company and refresh the estimated valuation

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Data by YCharts

GE Renewable Energy (billions) 2019 2020 2021 2022 2023 est
Sales $15.3 $15.7 $15.7 $13.0 $13.5
Sales growth % 2% 0% -17% 4%
Operating income (loss) ($0.8) ($0.7) ($0.8) ($2.2) ($1.8)
Operating margin -5.2% -4.6% -5.1% -17.3% -13.0%

GE Power (billions) 2019 2020 2021 2022 2023 est
Sales $18.6 $17.6 $16.9 $16.3 $16.6
Sales growth % -6% -4% -4% 2%
Operating income (loss) $0.2 $0.3 $0.7 $1.2 $1.3
Operating margin 1.6% 1.6% 4.3% 7.5% 8.0%

GE Aerospace (billions) 2019 2020 2021 2022 2023 est
Sales $32.9 $22.0 $21.3 $26.1 $30.2
Sales growth % -33% -3% 22% 16%
Operating income (loss) $6.8 $1.2 $2.9 $4.8 $5.3
Operating margin 20.7% 5.6% 13.5% 18.3% 17.5%

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Segment Est. Value
GE Vernova $33 billion
GE Aerospace $94 billion
less:
Net debt ($15 billion)
Separation costs ($1 billion)
Incremental transaction costs ($0.3 billion)
Total estimated value of parts $111 billion
Current value of GE $91 billion

Author: jeserje

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