GE Aerospace

Methodology

GE Aerospace's commercial and military jet engine business generates highly predictable aftermarket revenue from long-term service agreements, with more cyclical new engine sales. The installed base of engines creates a decades-long stream of high-margin parts and maintenance revenue. This calculation works well given the visibility from multi-year service contracts, though new engine deliveries fluctuate with aircraft production cycles.

Methodology

GE Aerospace typically commands premium PEG ratios reflecting the exceptional economics of its jet engine aftermarket business and dominant market position. The company's LEAP and GE9X engines provide growth from narrow-body and wide-body aircraft production. Compare to other aerospace OEMs to assess whether GE's aftermarket mix and commercial aviation exposure justify its valuation premium.

Methodology

GE Aerospace pays a modest but growing dividend as the company emerged from the GE conglomerate breakup. Management balances dividends with significant buybacks and ongoing deleveraging. Total return combines improving capital returns with strong earnings growth as commercial aviation normalizes and aftermarket revenue compounds from the growing installed base.