GE Vernova LLC (GEV)

Conclusion

GE Vernova LLC is a US industrial company, headquartered in Cambridge, Massachusetts, that generates, transfers, converts and stores electricity through its Power, Wind and Electrification segments. At 829.34 USD on 9 November 2026, the shares give a market capitalisation of 219.5 billion USD and an enterprise value of 205.6 billion USD.

The verdict is undervalued. The fair value band runs from 1775.42 to 2663.12 USD, with a midpoint of 2219.27 USD and a margin of safety of 167.6% at the current price. The DCF gives 2219.27 USD per share at a discount rate of 10.16%. The reverse DCF implies revenue growth of 1.9% a year, while revenue grew at a compound rate of 8.7% over three years. Current multiples are a P/E of 21.2, an EV/EBITDA of 19.9 and a P/FCF of 12.8, but their ten-year comparison is not available.

The strongest numbers are free cash flow conversion of 1.65x over the last twelve months, a Piotroski score of 7 out of 9, and net debt to EBITDA of -1.3, which means net cash. The weakest are a current ratio of 0.81, a return on equity of 91.1% that leverage inflates (equity multiplier of 5.64), and a DCF whose terminal value makes up 57.7% of the total. If operating cash flow weakened, or the growth needed to support the price did not appear, the undervalued reading would not hold.

Financial health

Financial strength is yellow: net debt to EBITDA of -1.3 (the company holds net cash) and a debt to equity ratio of 0.25 support the balance sheet, while a current ratio of 0.81 and a quick ratio of 0.60 pull it down. Interest coverage is not available because the company does not report its interest expense. The Altman Z-score is 2.68, in the grey zone, which means the result is inconclusive. Insolvency risk: low, about 1.3% by the estimate of the Ohlson model over one to two years, based on figures as of 31 December 2025.

Earnings quality

Earnings quality is green, supported by a Piotroski score of 7 out of 9, a Beneish M-score of -2.28 that points to an unlikely manipulation, and free cash flow conversion of 1.65x over the last twelve months and 1.14x over five years. The accrual ratio is -0.2%. Free cash flow after stock-based compensation is 17.1 billion USD, but stock-based compensation relative to revenue is not available. The five-year change in share count is not available either. Over the last eight quarters the company beat earnings expectations five times and missed three times, with an average surprise of 42.0%. Current-year estimates changed by 3.0% over 90 days and next-year estimates by 4.8%.

Profitability

Profitability is green. The gross margin is 21.7% against a median of 15.0%, the operating margin is 6.4% against a median of -2.7%, and the net margin is 23.5% against a median of -1.3%. Return on invested capital over the last twelve months is not available because the company's invested capital is not positive. The five-year median ROIC is 41.9%, against a WACC of 10.1%. Return on equity of 91.1% is inflated by leverage: the DuPont split shows a net margin of 12.8%, an asset turnover of 0.60 and an equity multiplier of 5.64, all for 2025.

Growth

Growth is green. Revenue has a three-year compound annual growth rate of 8.7%. Five-year and ten-year figures, and the growth rate of earnings per share, are not available. Revenue grew in three of the four comparable years. The company was incorporated in 2023, so its track record is short. The next-year earnings estimate implies growth of 64.9%, which is far above the growth the company has delivered so far.

Valuation

Valuation is green, and the verdict is undervalued. Current multiples are a P/E of 21.2, an EV/EBITDA of 19.9, a P/FCF of 12.8, a P/S of 5.0 and a P/B of 19.3. Their ten-year medians and any premium or discount are not available, because the price history is too short. The FCF yield is 7.8% and the earnings yield 4.7%. The DCF gives 2219.27 USD per share, using a discount rate of 10.16%, 20% first-stage growth and 2.5% terminal growth. The cost of debt is assumed, not reported. The fair value from historical multiples is not available. The reverse DCF implies growth of 1.9%. The fair value is an order-of-magnitude estimate built on fixed assumptions, including a 5% equity risk premium and capped growth, not a price target. The dividend yield is 0.2%, with a payout of 2.8% of free cash flow.

Risks

A current ratio of 0.81 and a quick ratio of 0.60 leave little liquid cover for short-term obligations, so any drop in operating cash would hit liquidity first. The return on equity of 91.1% depends heavily on the equity multiplier of 5.64; with less leverage the figure would be much lower. The DCF rests on a terminal value share of 57.7%, so the result depends largely on long-run assumptions. Several values are not available: return on invested capital over twelve months, interest coverage, stock-based compensation, the five-year share count change, and the fair value from historical multiples. The share price has moved sharply, from 136.75 USD in March 2024 to 1174.86 USD in June 2026, and stands at 829.34 USD now. This analysis has no debt maturity schedule and no revenue breakdown by segment.