Is GE Healthcare Technologies, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for GE Healthcare Technologies, Inc. has moved from very attractive to attractive. The company is currently considered undervalued, with a P/E ratio of 14, an EV to EBITDA ratio of 11.16, and a PEG ratio of 0.39. In comparison, Abbott Laboratories has a P/E of 19.12 and Medtronic Plc has an EV to EBITDA of 15.23, indicating that GE Healthcare is trading at a discount relative to its peers.
The company's strong return on equity (ROE) of 25.79% and return on capital employed (ROCE) of 18.89% further support the undervaluation thesis. Despite a recent decline in stock performance, with a year-to-date return of -8.98% compared to the S&P 500's 2.44%, the fundamental metrics suggest that GE Healthcare Technologies, Inc. presents a compelling investment opportunity at its current price of 71.16.