The industrial behemoth, collapsing under the weight of shortsighted acquisitions and massive pension obligations, has seen its shares plunge more than 24% in 2018 alone, and 56% over the past 12 months.
However, as CNBC reports, at least once prominent Wall Street analyst at Melius Research believes GE is being undervalued at this point:
Past looks at the value of GE’s individual businesses — also known as a “sum-of-the-parts” analysis — cast doubt on whether a fire sale of GE’s assets would even fetch today’s price at $13.28 per share. But Melius found that spinoffs from U.S. industrial companies return twice the value of the broader stock market, revealing a more optimistic forecast for GE.
“GE’s [sum-of-the-parts] as an example … likely undervalues the assets by 25 percent or more,” Melius wrote.
GE has been spinning off units at a rapid rate to raise cash. It also slashed…
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