GE Vernova Valuation: Assessing the Stock's Fair Value After an 86% Yearly Rally
AI Summary1 min read
TL;DR
GE Vernova's stock has surged 86% this year, with analysts projecting a fair value of $681.43, slightly above the current price. However, risks from soft European demand and high P/E ratios could challenge future growth.
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GE Vernova
GE Vernova's stock has risen 86% this year, driven by steady earnings growth and a robust year-to-date return. Analysts expect earnings to reach $5.8 billion by September 2028, with a fair value of $681.43, modestly above the current share price of $631.32. However, soft European demand and ongoing losses in the wind division pose risks to the optimistic valuation path. The stock trades on a high price-to-earnings ratio of 100.5x, which may not be sustainable in the long term.
