Business Overview

GE Vernova, Inc. is a electric power industry. Its products and services generate, transfer, orchestrate, convert, and store electricity. The firm operates through the following segments: Power, Wind and Electrification. The Power segment includes design, manufacture, and servicing of gas, nuclear, hydro, and steam technologies, providing a critical foundation of dispatchable, flexible, stable, and reliable power. The Wind segment includes wind generation technologies, inclusive of onshore and offshore wind turbines and blades. The Electrification segment includes grid solutions, power conversion, electrification software, and solar and storage solutions technologies required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of consumption. The Company was founded November 09, 2021 and is headquartered in Cambridge, Massachusetts. 

Price Target: $175/share

We assume 5% annual revenue growth through 2035, including 3% annual growth in Power, 6% annual growth in Wind, and 8% annual growth in Electrification. EBITDA margins expand from 2.4% in 2023 to 10.7% by 2028 and 13.2% by 2035. Improving FCF conversion (as a % of adj. EBITDA) drives $877m of FCF in 2024 growing to $5.2bn by 2035. WACC of 10%, driven by a 4.5% risk-free rate, 4.4% equity risk premium, 1.25x beta, and 2% terminal growth rate.