GE HealthCare Technologies Inc (GEHC) is undervalued and Koninklijke Philips NV ADR (PHG) is overvalued.
Against our estimates of intrinsic value, GEHC trades at the wider discount: a margin of safety of +29%, against -37% for PHG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $93.41; the price of $66.27 is 29% below that value, and 75% of that value comes from beyond year five.
Leak Score 63/100 on 5 of 12 signals
Discounting its cash flows at 8.1% (average of 3 methods) values the shares at $18.23; the price of $24.97 is 37% above that value, and 79% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | GEHC | PHG |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $66.27 | $24.97 |
| Intrinsic value | $93.41 | $18.23 |
| Margin of safety | +29% | -37% |
| Leak Score | 63/100 (5/12) | 27/100 (3/12) |
| Market cap | $29.9B | $24.4B |
| Revenue growth, 5 years | 3.7% | 0.4% |
| Operating margin | 13.7% | 9.1% |
| Net margin | 9.3% | 6.3% |
| Return on equity | 19.2% | 10.2% |
| Debt to equity | 0.96 | 0.65 |
| P/E | 15.2x | 18.6x |
| Forward P/E | 12.2x | 13.1x |
| P/B | 2.7x | 1.9x |
| Dividend yield | 0.2% | 4.0% |