Is GE Aerospace (GE) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Industrials sector peers in our coverage

In Line TTM fundamentals · sector averages from covered peers

GE trades at 41.2× TTM earnings — roughly in line with its Industrials sector average of 47.0×.

The Numbers

P/E (TTM)

41.2×

Sector avg: 47.0×

P/S (TTM)

7.7×

Sector avg: 2.9×

Market Cap

$351.96B

EPS (TTM): $8.14

Revenue (TTM)

$45.85B

Net income: $8.70B

Industrials Peer Comparison

How GE's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
GE This page $335.58 41.2×
CAT $798.14 41.0×
BA $207.80 83.8×
UPS $104.27 16.1×

Is the Multiple Justified?

August 30, 2026

GE Aerospace trades at a P/E of 42.1x, a slight discount to the industrials sector average of 46.0x. This valuation comes after a strong performance in Q4 and full-year 2025, with revenue up 21% and EPS up 38%. The company boasts a substantial backlog of approximately $190 billion and projects continued growth in 2026, with operating profit expected between $9.85 billion and $10.25 billion. Growth is primarily driven by robust demand in commercial aerospace services and increased engine deliveries. GE Aerospace plans to invest $1 billion in its U.S. manufacturing and supplier base in 2026 to accelerate production. Strong Q1 2026 results, with orders up 87% and revenue up 29%, further underscore its operational momentum.

Frequently Asked Questions

Is GE overvalued or undervalued?
On trailing-twelve-month earnings, GE trades at 41.2x versus a Industrials sector average of 47.0x in our coverage — a 12.2% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing GE with its own Industrials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Industrials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

Keep Digging on GE

Same question, Industrials peers