GE Just Received a Boost From an Unexpected Source
The recent spinoff of Siemens Energy provides General Electric (NYSE: GE) investors with a good handle on what the market may be willing to pay for GE's renewable energy and power businesses in the future. As such, it helps investors understand the long-term value opportunity with GE stock. Here's the lowdown.
GE and Siemens are fierce rivals that compete across a number of end markets, notably the power market (gas turbine equipment and services), renewable energy (wind power), and healthcare equipment. As such, three of GE's four industrial segments are in direct competition with Siemens. Fortunately, all three of Siemens' businesses that compete with GE are publicly listed, so investors can get a fix on what the market might pay for GE's businesses by looking at what the market is paying for Siemens businesses.
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Source Fool.com
