Latest Ratios: P/E Ratio 21.2x · EV/EBITDA 12.8x · 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 | $37.2B | $37.8B | $35.9B | $35.4B | $26.5B | — | — |
| Enterprise Value | $42.7B | $43.2B | $42.4B | $42.8B | $33.7B | — | — |
| P/E Ratio → | 21.20 | 18.03 | 18.01 | 25.60 | 13.83 | — | — |
| P/S Ratio | 1.81 | 1.83 | 1.82 | 1.81 | 1.44 | — | — |
| P/B Ratio | 3.58 | 3.56 | 4.15 | 4.84 | 2.76 | — | — |
| P/FCF | 30.88 | 25.07 | 23.15 | 20.66 | 14.70 | — | — |
| P/OCF | 18.72 | 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 | 12.77 | 12.95 | 13.22 | 14.05 | 10.68 | — | — |
| EV / EBIT | 15.46 | 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 | 4.7% | 5.5% | 5.6% | 3.9% | 7.2% | — | — |
| FCF Yield | 3.2% | 4.0% | 4.3% | 4.8% | 6.8% | — | — |
| Buyback Yield | 0.5% | 0.5% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.7% | 0.7% | 0.2% | 0.1% | 0.0% | — | — |
| Shares Outstanding | — | $460M | $459M | $458M | $454M | $455M | $455M |
Includes 30+ ratios · 6 years · Updated daily
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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 21.2x. The historical average is 18.9x. This places it at the 75th percentile of its historical range.
GE HealthCare Technologies Inc.'s current EV/EBITDA is 12.8x. 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 21.2x. This is at the 75th 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 0.17% 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.
Key Metrics
Top Statement Risk
Quarterly margin and cash volatility
Metrics are mathematically derived from official filings.
Premium Multiples Priced for Re-Acceleration
GEHC trades at 18.4x trailing and 16.7x forward P/E with EV/EBITDA of 13.0x, a discount to Stryker's 39.9x P/E and Edwards Lifesciences' 55.1x, according to the supplied valuation multiples and peer context.
Relative to the peer group, GEHC's earnings multiples sit well below Stryker and Edwards Lifesciences, which suggests the market is not pricing it as a high-growth medtech franchise. The forward P/E compression to 16.7x implies consensus expects earnings to rise, but the 25.1x price-to-free-cash-flow multiple indicates investors are paying meaningfully for cash flow that has been volatile. Investors should monitor whether reported earnings growth sustains the forward discount.
Margin Gains Rest on Timing Effects
Operating margin improved from 13.1% to 14.6% over recent quarters, yet net margin swung between 3.9% and 13.5%, based on reported quarterly figures.
The gap between operating and net margin in several quarters points to tax and non-operating items driving much of the bottom-line volatility rather than underlying operating improvement. The 2025Q4 gross margin spike to 54.3% stands out against a 38.5% to 42.8% range elsewhere, which may reflect timing rather than durable pricing power. Operating margin is the more reliable gauge of earning power here, and investors should monitor whether it holds above 14% without one-off support.
Returns Stuck Near Three Percent ROIC
ROIC has hovered between 2.2% and 3.9% across ten quarters while ROE recovered to 5.4%, based on reported ratio data, a level modest relative to Stryker's 11.1% ROIC.
The low ROIC relative to peers such as Edwards at 15.5% and Stryker at 11.1% suggests the large asset base, including roughly $15.1B of goodwill, is generating limited incremental return. ROE improvement appears driven more by leverage reduction than by efficiency, as debt-to-equity fell from 1.26 to 0.88. Returns on invested capital warrant further investigation before assuming a compounding trajectory.
Leverage Easing but Coverage Quarterly Volatile
Debt-to-equity declined from 1.26 to 0.88, while interest coverage ranged widely from 3.1x to 8.5x, according to reported ratio figures.
The deleveraging trend, with total debt near $10.0B to $10.8B and equity expanding, appears to be reducing financial risk on a balance sheet basis. The quarterly swing in interest coverage and D/EBITDA suggests earnings volatility, rather than debt levels alone, drives debt service comfort. Investors should monitor coverage stability over the next several periods before concluding leverage risk has structurally declined.
Thin Liquidity Buffer Against Obligations
Current ratio moved between 0.94 and 1.30 and quick ratio between 0.72 and 1.01 across ten quarters, based on the reported balance sheet data.
Quick ratios below 1.0 in several quarters indicate that liquid assets excluding inventory have at times been insufficient to cover current liabilities, which warrants attention given the working capital swings. Under severe stress, dependence on converting inventory and receivables to cash may suggest limited short-term flexibility. Investors should monitor whether the current ratio sustains above 1.1 as a practical floor.
Goodwill and Timing Distort Headline Ratios
Goodwill of roughly $15.1B represents about 39% of total assets in 2026Q3, so headline ROE and asset-based ratios may be sensitive to impairment, according to reported balance sheet figures.
The most commonly misapplied metric for a medtech equipment business like GEHC is headline ROE, which can look acceptable when leverage falls even as operating returns remain near 3% ROIC. Adjusting for goodwill by evaluating returns on tangible capital and using operating cash flow over several quarters rather than single-period free cash flow margins would give a cleaner read. Investors should monitor whether ROIC improves without relying on balance sheet deleveraging.