Latest Ratios: P/E Ratio 14.3x · EV/EBITDA 10.5x · ROE 21.6%. (2020–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $29.5B | $37.8B | $35.9B | $35.4B | $26.5B | — | — |
| Enterprise Value | $35.0B | $43.2B | $42.4B | $42.8B | $33.7B | — | — |
| P/E Ratio → | 14.26 | 18.03 | 18.01 | 25.60 | 13.83 | — | — |
| P/S Ratio | 1.43 | 1.83 | 1.82 | 1.81 | 1.44 | — | — |
| P/B Ratio | 2.82 | 3.56 | 4.15 | 4.84 | 2.76 | — | — |
| P/FCF | 19.60 | 25.07 | 23.15 | 20.66 | 14.70 | — | — |
| P/OCF | 14.85 | 18.99 | 18.39 | 16.86 | 12.54 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.10 | 2.15 | 2.19 | 1.84 | — | — |
| EV / EBITDA | 10.48 | 12.95 | 13.22 | 14.05 | 10.68 | — | — |
| EV / EBIT | 12.68 | 13.48 | 13.73 | 14.73 | 13.31 | — | — |
| EV / FCF | — | 28.71 | 27.34 | 24.95 | 18.69 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 40.0% | 40.0% | 41.7% | 40.5% | 39.1% | 40.8% | 39.4% |
| Operating Margin | 13.4% | 13.4% | 13.3% | 12.5% | 13.8% | 15.9% | 15.8% |
| Net Profit Margin | 10.1% | 10.1% | 10.1% | 8.0% | 10.4% | 12.8% | 80.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | 21.6% | 21.6% | 25.0% | 18.6% | 14.5% | 14.1% | 92.5% |
| ROA | 6.0% | 6.0% | 6.1% | 5.2% | 7.1% | 8.9% | 57.1% |
| ROIC | 13.3% | 13.3% | 13.2% | 11.6% | 11.3% | 13.4% | 14.1% |
| ROCE | 10.8% | 10.8% | 11.2% | 11.1% | 12.6% | 15.0% | 15.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.94 | 0.94 | 1.08 | 1.35 | 0.90 | 0.03 | 0.03 |
| Debt / EBITDA | 2.99 | 2.99 | 2.93 | 3.24 | 2.74 | 0.13 | 0.14 |
| Net Debt / Equity | — | 0.52 | 0.75 | 1.01 | 0.75 | -0.01 | -0.04 |
| Net Debt / EBITDA | 1.64 | 1.64 | 2.02 | 2.42 | 2.28 | -0.03 | -0.16 |
| Debt / FCF | — | 3.65 | 4.18 | 4.29 | 3.99 | -0.09 | -0.38 |
| Interest Coverage | 7.13 | 7.13 | 6.11 | 5.36 | 29.44 | 72.88 | 42.06 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 1.18 | 1.18 | 1.00 | 1.00 | 1.09 | 0.97 | 0.84 |
| Quick Ratio | 0.93 | 0.93 | 0.79 | 0.78 | 0.79 | 0.68 | 0.59 |
| Cash Ratio | 0.50 | 0.50 | 0.30 | 0.28 | 0.20 | 0.08 | 0.15 |
| Asset Turnover | — | 0.56 | 0.59 | 0.60 | 0.67 | 0.67 | 0.71 |
| Inventory Turnover | 5.54 | 5.54 | 5.91 | 5.93 | 5.18 | 5.35 | 6.52 |
| Days Sales Outstanding | — | 69.99 | 81.19 | 80.55 | 79.46 | 78.69 | 56.50 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.2% | 0.2% | 0.1% | — | — | — |
| Payout Ratio | 3.1% | 3.1% | 2.8% | 2.6% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.0% | 5.5% | 5.6% | 3.9% | 7.2% | — | — |
| FCF Yield | 5.1% | 4.0% | 4.3% | 4.8% | 6.8% | — | — |
| Buyback Yield | 0.7% | 0.5% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.9% | 0.7% | 0.2% | 0.1% | 0.0% | — | — |
| Shares Outstanding | — | $460M | $459M | $458M | $454M | $455M | $455M |
Hospital capital expenditure volatility
Based on current market data, GEHC trades at a forward P/E of 13.47, a significant discount to MedTech peers like Stryker, which suggests investors remain skeptical of the company's ability to transition from a capital-intensive hardware manufacturer into a higher-margin, software-driven clinical data provider.
The current valuation multiple appears to price in limited margin expansion, effectively treating the company as a legacy industrial entity rather than a high-growth medical technology firm. This discount warrants investigation into whether the market is underestimating the long-term recurring revenue potential of the company's massive installed base.
According to recent financial disclosures, GEHC's ROIC has remained stagnant in the 2.2% to 3.9% range over the last ten quarters, a level that significantly trails industry leaders and suggests that the company is struggling to generate meaningful returns on its substantial invested capital base.
The persistent low ROIC appears to be a structural byproduct of the heavy asset base and goodwill inherited during the 2023 spin-off. Investors should monitor whether management's 'Lean' initiatives can eventually drive these returns toward the double-digit levels seen in more agile, pure-play medical technology competitors.
As reported in quarterly filings, the company's cash conversion cycle has fluctuated between 47 and 62 days, reflecting the inherent difficulty in managing inventory and receivables across a complex, global supply chain for heavy medical imaging equipment and specialized pharmaceutical diagnostic agents.
The volatility in the CCC suggests that working capital management remains a primary operational challenge, often leading to lumpy cash flow generation. This inefficiency appears to be a recurring drag on liquidity, necessitating a cautious approach to assessing the company's ability to fund operations during cyclical downturns.
Based on reported figures, GEHC maintains a debt-to-EBITDA ratio that has reached as high as 19.96 in recent periods, indicating that the company's leverage remains a significant structural constraint that limits its capacity for aggressive capital allocation or large-scale strategic acquisitions in the near term.
While the company is prioritizing deleveraging, the high debt load relative to earnings suggests that interest coverage remains sensitive to any volatility in operating margins. This leverage profile appears to be a key factor in the market's cautious valuation, as it restricts the company's financial maneuverability.
The most commonly misapplied metric for GEHC is the standard P/E ratio, which obscures the company's true earning power by failing to account for the significant non-recurring costs and pension-related adjustments stemming from the recent separation from its former parent conglomerate, General Electric.
Investors should instead focus on adjusted free cash flow and segment-level operating margins to better gauge the underlying health of the business. Relying on headline P/E risks misinterpreting the company's progress in its post-spin transformation, as it ignores the cash-generative potential of the recurring service and PDx segments.
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Quick answers to the most common questions about buying GEHC stock.
GE HealthCare Technologies Inc.'s current P/E ratio is 14.3x. The historical average is 18.9x. This places it at the 25th percentile of its historical range.
GE HealthCare Technologies Inc.'s current EV/EBITDA is 10.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.7x.
GE HealthCare Technologies Inc.'s return on equity (ROE) is 21.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 31.0%.
Based on historical data, GE HealthCare Technologies Inc. is trading at a P/E of 14.3x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
GE HealthCare Technologies Inc.'s current dividend yield is 0.21% with a payout ratio of 3.1%.
GE HealthCare Technologies Inc. has 40.0% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
GE HealthCare Technologies Inc.'s Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.