Add on $6 billion for what's left of GE Capital, subtract $67 billion of liabilities, and you're left with about $4 billion in market cap. That's more than GE's current market capitalization.īy the numbers: Tusa reckons that GE's core industrial business has an enterprise value of about $65 billion, based on the multiples its competitors trade at. The second was share buybacks: Immelt spent more than $70 billion buying back shares during his tenure as CEO.The subsequent write-down was about $22 billion. The first was to buy Alstom, a troubled French power company.Immelt had two big ideas for how he was going to turn GE (or at least its share price) around. Without GE Capital to smooth over the cracks, problems in GE's core businesses became harder to hide.Welch's successor Jeff Immelt continued those traditions - until the global financial crisis destroyed GE Capital's balance sheet along with its coveted triple-A credit rating. What went wrong: Under Jack Welch, GE's chairman from 1981 to 2001, GE became increasingly imperial and financialized. In fact, according to new research from JPMorgan analyst Stephen Tusa, GE stock - once the classic "widows and orphans" investment - might be worth nothing at all.General Electric was the largest public company in the world in the early 2000s, a mighty conglomerate spanning everything from nuclear power plants to credit cards and daytime TV, but it's now worth less than companies you've may have never heard of, like Becton Dickinson or Crown Castle International.
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