Start

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Start Presentation
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General Electric(NYSEGE) Conglomerate
Viet Tran
Marcus Smith
Audrey Bailey
Tu Phun
Hoang Yen Cheng
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General Electric History

• 1876 Thomas Alva Edison opens exploration
  laboratory
• Introduces one of the greatest inventions of all
  times
• 1890 forms Edison General Electric Company
• 1892 Edison merges with Thomson-Houston Company
  to form General Electric

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General Electric Innovations

• 1902 Patented the Electric Fan
• 1928 Commercial Refrigerator
• 1933 Electric Control for Motors
• 1955 Control of Machine Tools The Greatest
  Innovatin in Metalworking of the Century
• 2000 First Internet Monitor

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Value

• GE Core Values
• Imagine
• Solve
• Build
• Lead

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Leaders of GE
Jeffrey R. Immelt Chairman of the Board and CEO,
General Electric Company
Bob Wright Vice Chairman and Executive Officer,
General Electric Company Chairman and Chief
Executive Officer, NBC Universal.
Dennis D. Dammerman Vice Chairman of the Board
and Executive Officer, General Electric Company
Chairman, General Electric Capital Services, Inc.
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GE Ownership
1.00
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Ever-Expanding Business

• GE a dominate conglomerate company
• Involved in 11 industries.

• GE Healthcare
• GE Infrastructure
• GE Insurance
• GE Transportation
• NBC Universal

• GE Advanced Material
• GE Commercial Finance
• GE Consumer Finance
• GE Consumer Industrial
• GE Energy
• GE Equipment Services

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General Electric Product
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General Electric Financial Systems
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General Electric Financial Services
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Revenue Stream
Products Systems Financial
Services
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General Electric Revenue Comparison
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Conglomerate Industry Comparison
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GE Financial Ratio
Growth Rates Assessment POOR
Price Ratios Assessment FAIR
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GE Financial Ratio
Profit Margins Assessment EXCELLENT
Financial Condition Assessment FAIR
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GE Financial Ratio
Investment Returns Assessment GOOD
Management Efficiency Assessment EXCELLENT
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Price and Trading Volume
 33.26
StockScouter Rating
7
10.21 Bil.
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GE Holding Period Return
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GE Discounted Cash Flow
0.0453
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GE CAPM
0.0323
The company is currently underpriced because Ke(
DCF model) gt Ke(CAPM)
gt
.0453
0.0323
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GE Risk Analysis
1.072
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Beta What does this mean?

• GE is slightly more risky than the average SP
  500 Stock with a Beta of 1.072
• However,
• When returns on the SP 500 are up, GE returns
  are only about (number) as high and vice versa
  when there is a loss

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GE Evaluation
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MM Proposition Chart
Based on the chart, GE belongs to NO FORM. There
is a 88 optimal capital Structure based on a 3
year analysis. A 15 year analysis would provide
better Accuracy and would show that GE belongs to
MODEL III.
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Capital Structure 2004
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Capital Structure History
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Market Efficiency
Nano Technology News July 7, 2004
Specific News-No Form
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Market Efficiency
March 21, 2003 Declaration of War in Iraq
Non-Specific News- Weak Form
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Strength Weaknesses

• Strength
• Positive HPR (20)
• DCF (Ke) gt CAPM (Ke) Under-priced
• (Current 33.26 compared to intrinsic 36.79)
• Conglomerate Diversification
• Paid down Debt with RE
• High Margins due to High Economy of Scale
• Strong Management Efficiency

• Weakness
• Conglomerate Managing
• Low Growth Rate (1.2)
• Low Relative Sales
• Low EPS

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5 Year Stock Price Chart
By looking at the 5 year price index you can see
that the stock price of GE fluctuate A lot. In
(pick one article we did) GE had a large (decline
or increase depend on article) due to (the
event).
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Analyst Evaluation
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Recommendation

• Marcus BUY
• Tu BUY
• Viet BUY
• Audrey HOLD
• Jennifer STRONG BUY

Overall Recommendation BUY
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Conclusion

• LOOKING FOR BRIGHT IDEAS ?(PICTURE)

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