The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, General Electric Co's share price is €19.51.
General Electric Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €6.35. Hence, General Electric Co's PS Ratio for today is 3.07.
Warning Sign:
GE Aerospace stock PS Ratio (=2.57) is close to 10-year high of 2.57
The historical rank and industry rank for General Electric Co's PS Ratio or its related term are showing as below:
XBRU:GEBC'
s PS Ratio Range Over the Past 10 Years
Min: 0.34 Med: 1.15 Max: 2.57
Current: 2.57
During the past 13 years, General Electric Co's highest PS Ratio was 2.57. The lowest was 0.34. And the median was 1.15.
XBRU:GEBC's PS Ratio is ranked worse than 58.28% of 302
companies
in the Aerospace & Defense industry
Industry Median: 2.025
vs XBRU:GEBC: 2.57
GE Aerospace revenue per share has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of General Electric Co was 15.50% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -3.70% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -9.40% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -5.70% per year.
During the past 13 years, General Electric Co's highest 3-Year average Revenue per Share Growth Rate was 18.10% per year. The lowest was -16.80% per year. And the median was 1.20% per year.
Back to Basics: PS Ratio
General Electric Co PS Ratio Historical Data
The historical data trend for General Electric Co's PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of General Electric Co's PS Ratio
For the Aerospace & Defense subindustry, General Electric Co's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General Electric Co's PS Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Electric Co's PS Ratio distribution charts can be found below:
* The bar in red indicates where General Electric Co's PS Ratio falls into.
General Electric Co PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
General Electric Co's Share Price of today is €19.51. General Electric Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €6.35.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
General Electric Co (XBRU:GEBC) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
General Electric Co PS Ratio Related Terms
Thank you for viewing the detailed overview of General Electric Co's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
General Electric Co (XBRU:GEBC) Business Description
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the conglomerate based on lean principles.
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