GE HealthCare Technologies Inc. (GEHC) DCF Valuation
TGM's two-stage DCF values GE HealthCare Technologies Inc. (GEHC) between $36.97 and $72.97 depending on assumptions, with a base case of $50.01. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (8.4%) reflects its beta.
What would today's price require?
$65.76 is justified only if free cash flow grows about +7.8% a year (fading to 2.5% long-run) at a 8.4% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.4% | $36.97 |
| Base case | 2.4%/yr | 8.4% | $50.01 |
| Optimistic | 5.4%/yr | 7.4% | $72.97 |
| Analyst DCF (FMP) | independent reference — different model | $166.30 | |
Current Price
$65.76
Market-Implied Growth
+7.8%/yr
vs +1.1% 5Y actual
Model Scenario Range
$36.97 – $72.97
model output — not a price target
GEHC DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for GEHC (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.6B · 0.45B shares · net debt $5.5B
Estimated Fair Value
$49.78
-24.3% vs $65.76
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $65.76; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.4% | $67.82 | $73.86 | $81.44 | $91.25 | $104 |
| 7.4% | $54.11 | $57.86 | $62.38 | $67.93 | $74.90 |
| 8.4% | $44.37 | $46.87 | $49.78 | $53.23 | $57.39 |
| 9.4% | $37.11 | $38.85 | $40.83 | $43.12 | $45.81 |
| 10.4% | $31.49 | $32.74 | $34.15 | $35.74 | $37.57 |
About GE HealthCare Technologies Inc.
GE HealthCare Technologies Inc. is a global medical technology company that creates, manufactures, and markets a diverse range of medical devices, services, and integrated digital solutions. These offerings are designed to assist in the diagnosis, treatment, and ongoing monitoring of patients. The company boasts an extensive international presence, serving markets across the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, and Hong Kong, among other regions. Its operations are structured across four primary business divisions: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging division specializes in advanced diagnostic imaging technologies, including systems for molecular imaging, Computed Tomography (CT) scans, Magnetic Resonance (MR) imaging, image-guided therapy, and X-ray, alongside specialized women's health products. The Ultrasound segment delivers a comprehensive suite of ultrasound solutions utilized for the screening, diagnosis, treatment, and monitoring of various diseases. These applications span radiology, primary care, women's health, cardiovascular diagnostics, point-of-care, and portable handheld devices, in addition to products supporting surgical visualization and guidance. The Patient Care Solutions segment is dedicated to providing essential medical devices, consumable products, services, and digital platforms. Its portfolio encompasses patient monitoring, anesthesia delivery and respiratory care, diagnostic cardiology, and maternal-infant care products. The Pharmaceutical Diagnostics segment supplies specialized diagnostic agents to the radiology and nuclear medicine industries. These include contrast media pharmaceuticals, administered to patients prior to scans like CT, angiography, X-ray, and MR, to enhance the visibility of internal tissues and structures. It also offers molecular imaging agents, or radiopharmaceuticals – molecular tracers labeled with radioisotopes – injected into patients for advanced diagnostic imaging applications such as Single-Photon Emission Computed Tomography (SPECT), Positron Emission Tomography (PET), and specific ultrasound procedures. Established in 2022, GE HealthCare Technologies Inc. maintains its corporate headquarters in Chicago, Illinois.
- Sector
- Healthcare
- Industry
- Medical - Healthcare Information Services
- CEO
- Peter J. Arduini