DCF Studio

    GEHC · NMS · Healthcare

    GE HealthCare Technologies Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 89.52

    Market price

    USD 79.55

    Implied upside

    +12.5%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    Value Per Share

    Perpetuity growth
    USD 89.52+12.5%
    Exit multiple
    USD 95.16+19.6%
    Market price
    USD 79.55

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn3bnFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 21.9bnUSD 22.9bnUSD 24.0bnUSD 25.0bnUSD 26.0bnUSD 26.9bnUSD 27.8bnUSD 28.7bnUSD 29.5bnUSD 30.2bn+3.7%
    EBITUSD 2.9bnUSD 3.0bnUSD 3.2bnUSD 3.3bnUSD 3.4bnUSD 3.6bnUSD 3.7bnUSD 3.8bnUSD 3.9bnUSD 4.0bn+3.7%
    NOPATUSD 2.3bnUSD 2.4bnUSD 2.5bnUSD 2.6bnUSD 2.7bnUSD 2.8bnUSD 2.9bnUSD 3.0bnUSD 3.1bnUSD 3.2bn+3.7%
    Add depreciation & amortisationUSD 673.5mUSD 706.0mUSD 738.0mUSD 769.4mUSD 799.8mUSD 829.0mUSD 857.0mUSD 883.4mUSD 908.0mUSD 930.7m+3.7%
    Less capital expenditureUSD -439.8mUSD -509.1mUSD -582.5mUSD -659.6mUSD -740.2mUSD -823.8mUSD -910.0mUSD -998.3mUSD -1.1bnUSD -1.2bn+11.6%
    Capex, % of revenue2.0%2.2%2.4%2.6%2.9%3.1%3.3%3.5%3.7%3.9%-
    Less increase in working capitalUSD -153.1mUSD -130.2mUSD -128.3mUSD -125.5mUSD -121.9mUSD -117.4mUSD -112.0mUSD -105.8mUSD -98.8mUSD -91.0m-5.6%
    Free cashflow to firmUSD 2.4bnUSD 2.5bnUSD 2.5bnUSD 2.6bnUSD 2.7bnUSD 2.7bnUSD 2.7bnUSD 2.8bnUSD 2.8bnUSD 2.8bn+2.0%
    Discount factor0.96420.89650.83350.77490.72050.66990.62280.57910.53840.5005-
    Present valueUSD 2.3bnUSD 2.2bnUSD 2.1bnUSD 2.0bnUSD 1.9bnUSD 1.8bnUSD 1.7bnUSD 1.6bnUSD 1.5bnUSD 1.4bn-
    Present Value Of The ForecastUSD 18.6bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.845Reported 0.769, pulled toward 1.0 (Blume)
    Cost of equity8.47%Risk-free + beta x equity risk premium
    Cost of debt5.59%Risk-free + 70bp, the spread for a A+ rating at 6.3x interest cover. Book interest / average debt was lower, at 4.4%.
    Market capitalisationUSD 36.0bn77.5% of capital
    Total debtUSD 10.5bn22.5% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC7.56%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 89.52

    60% of EV

    Forecast FCFF, final year
    USD 2.8bn
    Capex at depreciation, working capital in reinvestment
    USD 3.6bn
    Less reinvestment at g/ROIC (21.8% of NOPAT)
    USD -780.9m
    Capitalised
    USD 2.8bn
    ROIC (reported)
    11.5%
    Terminal value, undiscounted
    USD 56.7bn
    Terminal value, discounted
    USD 28.4bn
    Enterprise value
    USD 47.0bn
    Less net debt
    USD 6.0bn
    Equity value
    USD 41.0bn

    Exit at 12.6x EBITDA

    Value per shareUSD 95.16

    63% of EV

    Terminal value, undiscounted
    USD 61.9bn
    Terminal value, discounted
    USD 31.0bn
    Enterprise value
    USD 49.6bn
    Less net debt
    USD 6.0bn
    Equity value
    USD 43.6bn

    Spread between methods: 6%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    5.56%135.07143.00153.81169.20192.49
    6.56%105.93109.33113.76119.68127.81
    7.56%86.4287.7689.5291.8494.93
    8.56%72.4572.7773.2673.9874.99
    9.56%61.9661.7461.5961.5361.58

    Outlined: this model. Green text: above today's price of 79.55. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year4.0%3.9%2.6%
    EBIT margin13.8%13.2%11.8%
    Discount rate-7.6%8.1%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.