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Ge Annual Report 2011

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Submitted By luc1ana
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General Electric
April 1, 2005

Benjamin Stokes: April Harris: Chase Kochwelp: Will Whitsitt:

unclebenny223@yahoo.com Krzape@hotmail.com fijick@hotmail.com William.G.Whitsitt@ttu.edu

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TABLE OF CONTENTS Executive Summary.................................................. 4 Business & Industry Analysis................................... 6 Industry Overview ........................................................ 6 Five Forces Model.......................................................... 8 Industry Analysis ..........................................................14 Key Success Factor………………...................................... 15 Accounting Analysis ................................................ 19 Accounting Analysis Steps .........................................…..19 Screening Ratios ........................................................ .28 Ratio Analysis & Forecast Financials....................….31 Financial Ratio Analysis.........................................…..... 31 Cross Sectional (Benchmark) Analysis ................……..... 32 Financial Statement Forecasting Methodology……....….... 51 Valuations Analysis..................................................52 Method of Comparables............................................... 53 Calculation of WAAC and Cost of Equity……………………….56 Altman’s Z-score……………………………………………………….57 Discounted Dividends.............…………………………………. 58 Abnormal Growth Earnings......................................... 59 Discounted Free Cash Flow..........................................60 Residual Income Valuation Model.................................62 Long Run Average Residual Income Perpetuity…………..63 Appendices.....................…..............................…....44

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General Electric
Investment Recommendation: HOLD
GE/ NYSE Current Price…...$35.63 52 week price range $29.55-37.75 Revenue (2004)

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