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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Monday, June 24, 2024

GE Vernova Valuation

 


GE Vernova, the former General Electric's energy businesses is undervalued, according to Wolfteam Ltd.'s projections and estimates.

With 7.26 billion USD in revenue for the first quarter of 2024, growing at 6.42 % with negative profit margin of -1.79 %, GE Vernova's intrinsic value is 91 billion USD compared with GE Vernova's current market capitalization of 48.66 billion USD, in Wolfteam Ltd.'s view.

Here is an excerpt from GE Vernova's first quarter 2024 earnings presentation:

Financial snapshot
1Q’23 -a) 1Q’24 Y/Y-b)
Orders 9.7 9.7 (1)%
Revenue 6.8 7.3 5%*
Adjusted EBITDA* (0.2) 0.2 0.3
Adjusted EBITDA
Margin* (2.7)% 2.6% 470bps
Free cash flow* (0.8) (0.7) 0.2

Dynamics:

Orders: lower Wind & Electrification more than offset
Power strength; services grew, equipment decreased
• Revenue: growth driven by Electrification & Power;
growth across services & equipment
• Adj. EBITDA margin*: expansion from price,
productivity, cost reductions & volume
• FCF*: improved, with positive adj. EBITDA* partially
offset by working capital

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