General Electric Company is a diversified industrial corporation engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. Over the years, GE has developed or acquired new technologies and services that have considerably broadened the scope of its activities. These activities will ensure continuous growth for the future. The Company's business is divided into the following segments: Aircraft Engines, Commercial Finance, Consumer Finance, Consumer Products, Equipment Management, Insurance, Power Systems and NBC. GE operates in more than 100 countries and employs more than 315,000 people worldwide.GE Equity's initial plan was only to invest in areas unrelated to GE, with an eye toward making some money. Having understood how equity investing and growth are converged, top management of GE changed the company's strategy. It was decided that GE Equity should make investments in companies, technologies, and distribution channels that could further the strategic interests of the various GE businesses. GE Equity's venture investment goal is to build a world-class, global, private-equity business. The second goal is to extend GE's management and operating systems to other companies.Yahoo financial analysis predicts GE will increase 10% (per annum) over the next five years. GE is a solid company. It can be said with confidence that, GE will remain in business and making a predictable profit for the balance of their business life. In their case, the rate of return of the discount rate should be chosen from low-risk investment vehicles; giving them a low discount rate.GE equity does not seek to dominate the companies in which it invests. This approach characterized by support and respect for smaller enterprises as well as willingness not to seek control is an important aspect of the company's success. On their part, entrepreneurs see in GE Equity a value-added opportunity to get where they want to be more quickly than they could with a company offering less. GE often works out a licensing agreement for a portfolio company with General electric. It can also help start-ups over some trouble, sometimes charging prevailing consulting rates for its guidance.GE Equity is one of the leading providers of equity capital to growing companies. It has $1 billion a year available to invest in growth capital; ensuring future growth. This growth translates to a good return on the dollar now, and a great investment vehicle for future option purchases. GE is currently trading at $30.48 with a 1 year target estimate of $37.00. If I followed the estimated growth analysis if a discount rate of 3% was applied to $30.48 it would cost $29.59; which means I would pay no more than $2,950.00 for 100 shares.
