Buffett Brain · Research note
Score updated 28 Oct 2026 · analysis from 2 Jun 2026
GEV· Industrials
GE Vernova
GE Vernova powers the electrification boom, but at 187 times operating profit the price assumes a future that has not yet arrived.
Buffett fit
Weak fit
Owner
11
Durability
14
Management
75
Price
15
Score updated 28 Oct 2026 · analysis from 2 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned the whole company at this price, I would be paying for earnings I cannot yet see.
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The grid will need turbines and transformers for decades, so the demand is durable.
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Management earns real credit here, scoring 75. The balance sheet carries net cash, with net debt to EBITDA at minus 2.2 and modest of 0.21 debt to equity, and the share count has been held essentially flat.
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There is none. At a of 28.6 and an owner-earnings yield of 1.39 percent, the market is pricing GE Vernova for years of flawless execution.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 1Fortress balance sheet with net cash, net debt to EBITDA of minus 2.2 and low of 0.21 debt to equity
- 2Disciplined management scoring 75, with the share count held essentially flat rather than diluting owners
- 3Returns on capital are improving, with trailing of 10.3 percent ahead of the 7.6 percent five-year average
- 4Real scale in turbines and grid equipment underpins a durable, multidecade electrification tailwind
Concerns
6- 1The valuation is extreme, with an EV-to- of 187 and an owner-earnings yield of just 1.39 percent, far below a risk-free Treasury
- 2 are razor thin at 3.9 percent, leaving no cushion when projects run over
- 3Earnings are deeply cyclical, with a maximum decline of more than 330 percent showing how fast profits can vanish
- 4Five-year of 7.6 percent barely covers the cost of capital, so much of the growth has not created real value
Price history
$895+554.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
GE Vernova sells the heavy iron of the power grid, gas and wind turbines, generators, grid equipment and the services that keep them running. It is a thin-margin manufacturer, with a 19.9 percent and only a 3.9 percent , so almost all of the value is locked up in long order backlogs and decades of aftermarket service. Revenue is growing at a modest 3.6 percent, which tells you this is a recovering industrial, not a hypergrowth story.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 28, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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