Highly Regarded

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 38.9× TTM earnings — roughly in line with its Industrials sector average of 43.0×.

The Numbers

P/E (TTM)

38.9×

Sector avg: 43.0×

P/S (TTM)

7.2×

Sector avg: 2.6×

Market Cap

$332.38B

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 $316.91 38.9×
CAT $739.62 38.0×
BA $188.40 76.0×
UPS $97.25 15.0×

Is the Multiple Justified?

October 11, 2026

GE Aerospace's P/E of 37.9x trades at a slight discount to the industrials sector average of 42.6x. This valuation comes as the company demonstrates strong operational momentum despite persistent supply chain challenges. GE Aerospace raised its 2026 profit and free cash flow forecasts, driven by robust demand for jet engines and aftermarket services. The company sees no slowdown in aftermarket demand for its propulsion systems, with overhaul shops reportedly 'wildly oversubscribed'. GE Aerospace is making significant investments, including an additional $1 billion across its U.S. manufacturing sites and supplier base, to accelerate engine deliveries and strengthen defense production, alongside plans to hire 5,000 U.S. workers in 2026. Strong engine orders and a raised full-year Commercial Engines & Services growth outlook underscore its positive trajectory, though supply chain constraints remain a key challenge into 2027.

Sources

Frequently Asked Questions

Is GE overvalued or undervalued?
On trailing-twelve-month earnings, GE trades at 38.9x versus a Industrials sector average of 43.0x in our coverage — a 9.4% 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.

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Same question, Industrials peers

BA CAT UPS