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$29.73 - $42.28$35.91
Multi-Stage$44.16 - $48.56$46.32
Blended Fair Value$41.11
Current Price$56.00
Upside-26.59%
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 Rate9.73%9.73%9.73%
Growth Rate-2.00%-1.00%0.00%
Fair Value$29.73$35.91$42.28
Upside / Downside-46.92%-35.88%-24.49%

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 Rate9.73%9.73%9.73%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)401.22405.31409.41
Year 2 PV (M)634.51647.53660.67
Year 3 PV (M)813.34838.50864.16
Year 4 PV (M)946.69985.931,026.37
Year 5 PV (M)1,042.241,096.521,153.03
PV of Terminal Value (M)16,396.6217,250.4318,139.44
Equity Value (M)20,234.6321,224.2122,253.09
Shares Outstanding (M)458.25458.25458.25
Fair Value$44.16$46.32$48.56
Upside / Downside-21.15%-17.29%-13.28%

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