Is GE HealthCare Still Attractive After Its Recent Share Price Climb and AI Momentum?

Wondering if GE HealthCare Technologies is actually good value at today’s price, or if the recent enthusiasm has already been priced in? Let us break down what the market might be missing.
GE HealthCare’s share price has climbed to around $86.05, rising 4.3% over the last week and 17.2% in the last month, while still only up 9.8% year to date and 5.6% over the past year, after a strong 44.1% gain over three years.
Recent headlines have focused on GE HealthCare’s position in advanced imaging and diagnostic technologies and its growing footprint in AI driven healthcare solutions, which has helped renew investor interest. The market is slowly waking up to how its installed base, software ecosystem, and partnerships with major hospital systems could support more durable growth than a typical medtech cyclical story.
On our checklist of value signals, GE HealthCare scores a solid 5 out of 6, suggesting it looks undervalued on most, but not all, of the standard metrics we track. Next, we will walk through those different valuation approaches in detail and then finish with a more holistic way to decide what the stock is really worth.

GE HealthCare Technologies delivered 5.6% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry.

A Discounted Cash Flow model estimates what a business is worth by projecting the cash it can generate in the future and discounting those cash flows back to today’s dollars.

For GE HealthCare Technologies, the latest twelve month Free Cash Flow stands at about $1.43 billion. Analysts and extrapolated estimates suggest this could rise steadily over the coming decade, reaching roughly $4.59 billion by 2035, with intermediate projections like around $2.84 billion by 2028. Simply Wall St uses a 2 Stage Free Cash Flow to Equity model, where the first stage relies on analyst forecasts and the second stage assumes gradually slowing growth.

When all those projected cash flows are discounted back, the model arrives at an intrinsic value of about $139.81 per share. Versus the recent share price near $86, the DCF points to the stock trading at roughly a 38.5% discount, which suggests potential upside if the cash flow path plays out as expected.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests GE HealthCare Technologies is undervalued by 38.5%. Track this in your watchlist or portfolio, or discover 904 more undervalued stocks based on cash flows.

GEHC Discounted Cash Flow as at Dec 2025

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for GE HealthCare Technologies.

For profitable, established companies like GE HealthCare Technologies, the Price to Earnings (PE) ratio is a straightforward way to gauge how much investors are willing to pay today for each dollar of current profits. It naturally captures the market’s expectations for future growth and the risk of those earnings, with faster growing and more resilient businesses typically deserving higher PE multiples.

GE HealthCare currently trades on a PE of about 17.7x, which is materially below the Medical Equipment industry average of roughly 30.1x and also under the broader peer group average of around 33.0x. On the surface, that big discount suggests the market is assigning more modest growth prospects or higher risk to GE HealthCare than to its peers.

Simply Wall St’s Fair Ratio framework refines this view by estimating what PE the company should trade on, given its earnings growth profile, industry positioning, profit margins, market cap and specific risk factors. For GE HealthCare, that Fair PE comes out at about 27.2x, comfortably above the current 17.7x. This indicates the shares are pricing in a much weaker outlook than our fundamentals based model implies, pointing to a meaningful valuation gap.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1447 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to link your view of GE HealthCare Technologies’ story with a concrete forecast for revenue, earnings and margins, and then translate that into a Fair Value you can compare to today’s share price.

On Simply Wall St’s Community page, Narratives let you start with the big picture. For example, you might believe GE HealthCare’s AI imaging pipeline and expanding hospital partnerships will steadily lift margins and justify a Fair Value closer to the higher end of recent targets around $106. Alternatively, you might think that China tariffs, regulatory risk and competitive pressure will cap growth and support a more cautious view nearer the low end around $73. The platform automatically turns either story into a full set of projected numbers and a live Fair Value that updates as new news, earnings or guidance arrives, so you can quickly see whether your chosen Narrative suggests the stock is a buy, a hold, or a sell at the current price.

Do you think there’s more to the story for GE HealthCare Technologies? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GEHC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

link