Orin
GEVNYSE·Renewable Utilities

GE Vernova Inc. GEV

Market cap $253.1BP/E 27.0× trailingGross margin 20.2%Reports Wed 28 Oct, before the open
$951.82
+1.54 (+0.16%)Wed close 16:00 ET
52-wk $530.16 – $1195.94
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Orin's take
0.62conviction · moderate
Refreshed 29 Aug · take v6. A new filing or a print queues the next refresh.

GE Vernova's turnaround remains impressive—FY2025 revenue grew 8.94% to $38.1B, operating margin expanded from 2.25% to 3.65%, FCF reached $3.71B, and total debt was eliminated—but the stock at $911.93 still trades at 27.0x EV/EBITDA, an 86% premium to the peer median of 14.5x, leaving little margin for error. The recent pullback from prior levels near $1,040 has improved the risk/reward, with RSI at 37 signaling oversold conditions and the price still above the 200-day MA of $877, but MACD remains deeply negative (histogram -8.34) and insiders have net sold $117M over 24 months.

The AI-power electrification thesis is validated by 68% electrification revenue growth and raised 2026 guidance, yet concerns about sustainability of AI capex commitments and thin operating margins warrant patience until technicals stabilize or valuation compresses further.

What could go wrong

  • Valuation premium. EV/EBITDA of 27.0x is 86% above the peer median of 14.5x and PS of 5.87x is 56% above the peer median of 3.76x, demanding sustained high growth to justify the price.
  • AI capex sustainability. A WSJ report on $3T in off-balance-sheet AI commitments recently pressured the stock, raising questions about whether data-center power demand forecasts will materialize.
  • Insider selling. Insiders net sold $116.7M in shares over 24 months, including the Wind CEO selling in June 2026 and the CEO exercising options and selling in April 2026.
  • Thin operating margins. Despite revenue of $38.1B, operating margin is only 3.65% in FY2025, meaning small cost or pricing pressures could materially impact profitability.

What would change my mind

Technical stabilization. MACD histogram turns positive and price reclaims the 50-day MA above $1,032bullish
Margin expansion confirmation. Q3 2026 operating margin exceeds 5% on continued electrification and power segment strengthbullish
AI demand disappointment. Major hyperscaler announces significant data-center capex reductions or project cancellationsbearish
Break below 200-day MA. Price closes below $877 on high volume, indicating loss of institutional supportbearish

Where this comes from: FMP FY2025 annual + derived_metrics · FMP FY2025 annual · peer_relative composite · technicals as of 2026-08-28. Orin's read on GEV; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$20.6B0.4% of fund
Fmr$19.0B0.8% of fund
State Street$13.8B0.4% of fund
Geode Capital Management$7.4B0.4% of fund
Jpmorgan Chase &$6.9B0.4% of fund
Morgan Stanley$6.7B0.4% of fund

173 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 151 Form 4 filings, net −$116.7M. Of the 50 on hand, 0 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Utilities
MetricNowOwn medianSector
P/E27.0×25.9×
EV/EBITDA28.2×
P/S6.13×1.20×
P/B21.3×7.1×

Its P/E sits 60th percentile of its own last 5 years (+0.72σ from its own mean).

What the price assumes

24.5%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $3.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

29 firms · 2026-09-23
Consensus target

$1266

$949$1450 · +33% against today's price

How they rate it
  • 22 buy or overweight
  • 7 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 22.8× of 6 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
GEVGE Vernova Inc.$254B27.0×28.2×20.2%23.0%83%
CEGConstellation Energy Corporation$95B25.6×14.0×94.9%11.1%15%
CWENClearway Energy, Inc.$6B39.6×14.2×53.0%5.8%2%
DUKDuke Energy Corporation$89B17.1×11.1×68.2%15.7%10%
NEENextEra Energy, Inc.$161B17.2×15.1×71.8%32.0%17%
ORAOrmat Technologies, Inc.$6B46.1×20.3×27.9%10.7%5%
SOThe Southern Company$96B20.0×12.0×43.4%15.4%13%

The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 18.3% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY24 58.3×FY25 36.5×

What its sector has traded at

Utilities
FY14 14.0×FY26 27.4×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$338$865.73 · −61%2026-06-10
Levered DCF$660$865.73 · −24%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $951.82
52-week range$530 – $1196
Analyst targets$949 – $1450
Standard DCF$338 as of 2026-06-10, when it was $865.73
Levered DCF$660 as of 2026-06-10, when it was $865.73
At own 5y-median P/E (-13×)$-460
At 5y P/E range (-82–58×)$-2874 – $2054
At sector P/E (26×)$913

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.