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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