Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

GE HealthCare Technologies Inc. (GEHCV)

Company Dividend Discount ModelIndustry: Medical - Healthcare Information ServicesSector: Healthcare

Valuation Snapshot

Stable Growth$32.27 - $46.71$39.29
Multi-Stage$51.88 - $57.10$54.43
Blended Fair Value$46.86
Current Price$56.00
Upside-16.32%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.120.090.000.000.000.000.000.000.000.00
YoY Growth--34.15%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.21%0.16%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,038.00
(-) Cash Dividends Paid (M)103.00
(=) Cash Retained (M)1,935.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)407.60254.75152.85
Cash Retained (M)1,935.001,935.001,935.00
(-) Cash Required (M)-407.60-254.75-152.85
(=) Excess Retained (M)1,527.401,680.251,782.15
(/) Shares Outstanding (M)458.25458.25458.25
(=) Excess Retained per Share3.333.673.89
LTM Dividend per Share0.220.220.22
(+) Excess Retained per Share3.333.673.89
(=) Adjusted Dividend3.563.894.11
WACC / Discount Rate8.81%8.81%8.81%
Growth Rate-2.00%-1.00%0.00%
Fair Value$32.27$39.29$46.71
Upside / Downside-42.38%-29.85%-16.58%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,038.002,017.621,997.441,977.471,957.691,938.121,996.26
Payout Ratio5.05%22.04%39.03%56.02%73.01%90.00%92.50%
Projected Dividends (M)103.00444.75779.651,107.811,429.331,744.311,846.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.81%8.81%8.81%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)404.62408.75412.88
Year 2 PV (M)645.32658.55671.92
Year 3 PV (M)834.21860.01886.33
Year 4 PV (M)979.221,019.801,061.63
Year 5 PV (M)1,087.191,143.801,202.75
PV of Terminal Value (M)19,821.5520,853.7121,928.42
Equity Value (M)23,772.1124,944.6226,163.94
Shares Outstanding (M)458.25458.25458.25
Fair Value$51.88$54.43$57.10
Upside / Downside-7.36%-2.80%1.96%

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