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If you are wondering whether GE HealthCare Technologies shares offer good value right now, the key is understanding how the current price lines up with what the business might reasonably be worth.
The stock last closed at US$82.51, with returns of 6.4% decline over 7 days, a 0.3% gain over 30 days, a 0.4% decline year to date, and a 2.8% decline over 1 year, which can change how the market views both its potential and its risks.
Recent news coverage has focused on GE HealthCare Technologies as a standalone medical technology company following its separation from the broader GE group, with investors watching how it performs as an independent business. Commentators have also highlighted its role in imaging and diagnostics, which helps frame how the market thinks about its long term prospects and price moves.
On our valuation checklist, GE HealthCare Technologies scores 5 out of 6, so next we will look at how different valuation methods arrive at that result and then finish with a way to assess value that goes beyond the usual ratios and models.
Find out why GE HealthCare Technologies’s -2.8% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today’s value using a required rate of return. The goal is to see what those projected dollars in the future might be worth in your hands right now.
For GE HealthCare Technologies, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The company’s last twelve months free cash flow is about $1.43b. Analyst estimates and subsequent extrapolations suggest free cash flow reaching around $2.84b by 2028, with a series of projected cash flows running out to 2035 that are then discounted back to today in the model.
On this basis, the DCF calculation points to an estimated intrinsic value of about $140.50 per share, compared with the recent share price of $82.51. That gap indicates the stock is 41.3% undervalued according to this cash flow based model.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests GE HealthCare Technologies is undervalued by 41.3%. Track this in your watchlist or portfolio, or discover 868 more undervalued stocks based on cash flows.
GEHC Discounted Cash Flow as at Jan 2026
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 a profitable company like GE HealthCare Technologies, the P/E ratio is a straightforward way to relate what you pay per share to the earnings generated per share. It gives you a quick sense of how much the market is paying for each dollar of current earnings.
What counts as a “normal” P/E depends on how investors view growth potential and risk. Higher expected earnings growth or lower perceived risk can support a higher P/E, while slower growth or higher uncertainty tends to justify a lower one.
GE HealthCare Technologies currently trades on a P/E of 16.96x. That sits below the Medical Equipment industry average P/E of 31.01x and the peer group average of 38.42x. Simply Wall St’s Fair Ratio for the stock is 27.23x, which reflects a tailored view of what the P/E might be given factors such as earnings growth, profitability, industry, market cap and company specific risks.
The Fair Ratio is more informative than a simple comparison with peers because it adjusts for those company specific traits rather than assuming all firms deserve the same multiple. Comparing 16.96x to the 27.23x Fair Ratio suggests the shares trade below that tailored reference point.
Result: UNDERVALUED
NasdaqGS:GEHC P/E Ratio as at Jan 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1440 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation. Let us introduce Narratives, a simple tool on Simply Wall St’s Community page that lets you set out your own story for GE HealthCare Technologies, connect that story to assumptions about future revenue, earnings and margins, and translate those assumptions into a Fair Value you can compare to the current price when making your own decisions. That Fair Value then updates automatically as new information, such as earnings or product news, arrives. Some investors on the platform currently build Narratives that support a higher fair value of about US$106.00, while others focus more on risks such as tariffs or competition and land closer to US$73.00, all within the same shared framework.
Do you think there’s more to the story for GE HealthCare Technologies? Head over to our Community to see what others are saying!
NasdaqGS:GEHC 1-Year Stock Price Chart
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.
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