Is 0% auto financing just a scam? That's the question that popped in my mind recently when my mother-in-law, who is fastidious about her finances, was turned down for that rate when she bought a new car. If someone like her, who has a history of no missed payments on any of her bills and very minimal debt, can't qualify, who can?
While it's not a scam, interest-free financing isn't always easy to get. And even if you do qualify, you may not want it.
"Typically 0% loans are used by the manufacturers as a low cost leader to generate showroom traffic," says automotive credit expert Matt Briggs, CEO of CreditJeeves.com.
"Only one out of 10 consumers actually qualifies for 0% and there are many factors that come into play," warns Tony Le, pricing manager with Edmunds.com. There are typically two hurdles consumers who don't want to pay interest on a car loan have to overcome.High Scores Pay Off
The first is the high credit score that is often required.
According to Experian Automotive, the average credit score of borrowers who secured interest rates of 1% or less on their auto loans in the first quarter of 2014 was 748. (The scoring model used was VantageScore 3.0, which goes up to 850.) Only 8% of borrowers qualified for loans with rates of 1% or less, says Melinda Zabritski, senior director of automotive credit for Experian Automotive.Auto Loan RatesLooking to buy a new or used car or refinance an existing auto loan? Take a look at todays auto loan rates to find the best loan for you.
Compare Auto Loan Rates Now. gt;gt;gt; A Car Payment or a Mortgage Payment?
The other big hurdle? The monthly payment.
The average vehicle loan term is now 66 months, according to Experian, and the average amount financed is close to $30,000 ($27,612 to be exact). But some interest-free offers only extend to a 36-month loan. For a $30,000 loan, that would mean a monthly payment of $833 a month. "That's the catch," say Le.
Its not always the case that you have to take a short-term loan, however. Some manufacturers offer 60- or even 72-month financing with no interest.
"When you are negotiating, are you negotiating rate, or are you negotiating payment?" asks Zabritski. "If you are going to try to get a lower payment, (no-interest financing) might not be available on longer-term loans."
One more potential pitfall: You may forgo the cash-back rebate in order to secure that rock-bottom rate, Le warns. Edmunds.com offers a calculator that compares APR with the rebate to figure out which is the better deal.The Best of Both Worlds
Even if you don't qualify for a 0% loan, you may be able to get a low interest rate on a longer-term loan that fits your budget. Here's what kind of rates consumers pay, on average, in different credit score ranges.
As you can see from the table, while the difference between the average monthly payment consumers with poor credit are paying versus those who have excellent credit is only $35 a month, over the life of the loan, it adds up to $6,470 and that is a lot!
While there are consumers who get loans at 0% today, "anything between 2% 3.5% is a good rate," Zabritski advises.
If youre not sure of your credit standing, you can check your credit score for free at Credit.com. Along with two scores, you'll also get monthly updates and an action plan for your credit. The best time to check it is before you need to buy or replace your vehicle, since fixing mistakes or improving your credit can take time.
In addition, it's a good idea to line up a loan before you walk into the dealership. If your dealer can beat that rate, great. If not, you know you're covered. Credit unions (a popular source of low-rate vehicle financing) are even able to work with consumers across the country. You can shop for a nationwide credit union car or truck loan here.More on Auto Loans:
- Are There Car Loans for People With Bad Credit?
- What to Do If You Cant Make Your Car Payments
- Top 5 Worst Car Buying Mistakes
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DETROIT, Sept. 2, 2014 /PRNewswire/ -- Ally Financial launched a new tool to help consumers decide whether buying or leasing might be their best option when shopping for a vehicle. Available for free on Allys website, the interactive buy or lease tool will help arm consumers with the right information to start the vehicle financing process.
The tool leads consumers through five simple questions on their automotive and driving needs, including how many miles they drive annually, down payments intentions and maintenance, as well as preferences on how long to keep a vehicle.
After completing the questions, consumers will learn which option may best fits their needs - buying, leasing or the Ally Buyers Choice product. Consumers can explore additional information on these financing options, or take what theyve learned and head into the dealership equipped with knowledge on the different choices available.
Well informed consumers do their research and come armed with a game plan when looking to finance a vehicle, said Andrea Riley, chief marketing officer of Dealer Financial Services for Ally. Knowing what types of options are available before even stepping foot in the dealership can help consumers feel more confident that the decisions they are making are the right ones for their financial situation.
The interactive tool is available for all consumers on Allys website at www.ally.com/auto/personal/explore-financing-options/.
About Ally Financial
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Allys automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the companys direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Allys Corporate Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $149.9 billion in assets as of June 30, 2014, Ally operates as a financial holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
SOURCE Ally Financial
Both new car leasing and lease to own financing may have the word lease in them but they are meant for different types of buyers and are unlike each otherProblem Credit Loan Questions
Here at Auto Credit Express we receive questions from credit-challenged consumers every day regarding the bad credit car loan process. Many of these questions have to do with the confusion between lease to own cars and new car leasing.New Car Leasing Versus Lease to Own Financing
Here are some of the major differences between new car leasing and lease to own financing:
Vehicle ownership: When you lease a new car the leasing company owns the vehicle, not you. Once the lease is completed, the vehicle is returned to the leasing company. With lease to own financing, a portion of the payment goes toward vehicle ownership. Depending on how the finance contract is worded, once the lease term is completed typically the buyer either has to make a preset balance payment or already owns the vehicle outright.
Credit checks: New car leasing always requires a credit check, payments are reported to the credit bureaus, and these leases are typically only offered to buyers with good to excellent credit scores. Lease to own financing usually doesnt require a credit check and payments on these loans are not always reported to the credit bureaus.
Down payments: Most new car leases dont require a down payment, while lease to own financing programs typically require fairly large down payments.
Types of leased vehicles: While new car leases will always finance a new vehicle, lease to own vehicles are usually used cars since most of these dealers arent franchised new car dealers.
Vehicle maintenance: New cars that are leased are covered by manufacturer-backed new car warranties that cover most vehicle systems. In most cases, lease to own vehicles are not covered by any warranty if they are, the coverage is usually very limited.The Bottom Line
While new car leasing and lease to own car financing may sound very similar, there are major differences between them including potential vehicle ownership, credit checks, down payments, the types of vehicles involved as well as maintenance costs.
Something else thats good to know: At Auto Credit Express we match people that have experienced credit difficulties with new car dealers that can offer them their best opportunities for approved auto loans.
So if youre ready to reestablish your car credit, you can begin now by filling out our online car loan application.
Unlike my last article about General Electric (NYSE:GE), which was to review the 2013 Q4/FY earnings report, this article focuses more on my investment thesis and valuation opinions. My thesis isnt unique -- its that GE has been transforming back into an industrial conglomerate, rather than a financial firm that dabbles in industrial businesses, and the market will ultimately revalue it as such -- but there are many related new developments. So, Ill review most of the developments, offer my opinions on them, and have also included very many links to additional information that is worth considering for current and prospective GE shareholders. Ill also offer some opinions about the types of portfolios and investors for which I believe a GE position is a good choice.
I cant assume that everyone who reads each new article has read any of my other articles or Instablogs and is already familiar with the general strategies behind my opinions, so I must point out that my views are that of a long-term investor. While Ill offer my twelve-month price target, my opinions are most applicable for long-term investing by building positions over time, rather than short-term trading. Thus, I recommend always staging into positions to make each buy less critical, but note that Im not referring to dollar cost averaging.
My initial call on GE was: My opinion is to consider buying GE in the $23-24 range and I expect the shares to hit $28 within twelve months. In December of 2013, GE reached $28 for the first time since that call, but has since given back much of the 15% gain. In my new-year updates and outlook article from January, I revised my original opinion by raising my price target to $31. My updated valuation and price target opinions are detailed herein.
(click to enlarge)Source: Yahoo FinanceBusiness Performance Drivers
Ive split this section of the article into four subsets: Corporate Restructuring, Backlog Growth, Margin Expansion and Cost Cutting. Each is really part of the corporate restructuring GE has been undergoing for the past few years, but I discuss them separately, since there are many acquisitions and divestitures to cover in the first section, and it may be confusing to combine all of the topics.
GE plans to generate 75% of earnings from its industrial businesses by 2016. Before diving into details of what GE has been doing to secure its position as an industrial leader, Ill first set a foundation for why thats important. In sum, the timing aligns perfectly with several interrelated long-term secular trends.
A re-industrialization of North America is being driven by two main factors. First, the oil and gas boom behind the push toward US energy independence is making energy needed for industrial operations cheaper in the US than in other parts of the world. Second, manufacturing in China and other emerging markets is losing its economic advantage as offshore wages quickly rise from extremely low historic levels, while productivity remains relatively low. When additional factors like high transport costs and intellectual property issues are added to the costs-of-doing-business mix, offshore manufacturing advantages are fading. Economists have pointed to a re-shoring phenomenon for years, but only recently have politicians started taking action to support the process.
When those factors combine with the fact that extreme economic downturns tend to be followed by comparably-atypical recoveries, industrial firms are the prime beneficiaries in the resulting economic environment. In other words, as pent-up demand continues to gradually come back into world economies after the extreme and extended cuts of the Great Recession, the leading industrial companies are likely to continue seeing strong demand for years to come. In my view, this is a perfect environment for a company like GE to reposition for many years of opportunity around the globe in the many different industries the company serves, including Energy, Healthcare, Infrastructure, Oil amp; Gas, Power amp; Water and Transportation. With that said, its always very important to keep in mind that neither secular, nor cyclical, trends play out overnight.
(click to enlarge)Source: GE presentation
Acquisition of Alstom Power amp; Grid Businesses
In June, the Board of Alstom (OTCPK:ALSMY) approved the $16.9B offer from GE to acquire Alstoms Power amp; Grid businesses and, a week ago, the French government also approved the deal. Pending approval of Alstom shareholders at a December 19 meeting, as well as antitrust regulatory approvals in twenty nations, the deal is expected to close in mid-2015. GE expects cost synergies from the deal to be modestly accretive to earnings per share [EPS] soon after the deal closes in 2015, and to be $0.06 to $0.09 accretive to EPS by 2016.
This deal represents the largest acquisition in GEs history and was reached in spite of (literally) counter offers from GE rivals Siemens (OTCPK:SIEGY) and Mitsubishi Heavy Industries (OTCPK:MHVYF). GE refers to Alstoms $10B of revenue from emerging markets as its main motivation for the deal, since GE expects infrastructure demand from developing markets to be a major contributor to its long-term growth. At the same time, its obvious that an additional unspoken motivator was to stick it to GEs German frienemy Siemens. Or, said in a less juvenile manner, this is clearly a strategic deal to position for a critical long-running rivalry. For many years, GE has been trying to find a way to better compete with Siemens, and buying large European operations right in Siemens backyard does the trick.
Ive heard pundits claim that GE overpaid for Alstom, but I dont place much value in those claims because theyre obviously disregarding the fact that GE had fierce competition for the deal, and also because I know exactly what the same people would be saying if GE had not made a major acquisition soon -- that the company isnt living up to promises to focus on industrial operations and has dismal prospects for long-term growth. To me, its far too convenient for a man with a full belly to claim that a starving man has overpaid for bread.
Its impossible for anyone who isnt a Board member to know critical details of how the Alstom assets will help fortify GEs future. However, what we all know is that no company can organically generate growth comparable to that from a major acquisition in a remotely comparable time period. Therefore, I prefer to consider the core reason that businesses are sold and acquired in the first place -- the seller has been unable to extract what it considers to be adequate value from the assets and the acquirer believes that it can extract more value.
Again, this is clearly a strategic deal, so only looking at the price cant tell us whether its a good deal. As Warren Buffett says, hellip; price is what you pay, value is what you get. For example, what price should be put on the position GE would be in ten years from now if Siemens was allowed to win this bid?
Furthermore, its important to note that Alstom has to re-invest over $3B into three 50/50 joint ventures [JVs] that the French government worked into the deal. According to Reuters, with Alstoms investments in the JVs, and similar expenditures from Alstom, GEs total cost for the deal will be about $10B, not the $16.9B headline number. Also recall that GE has a very large amount of cash overseas and needs to put some of it to work, since the money cant be repatriated without a prohibitively huge tax burden and theres no telling how many more years it will take the US to address the issues with our tax code.
Finally, recall that one of GEs stated strategies is to enhance our long-term growth opportunities in the growing global power market. Thus, I think part of what made this deal so attractive is the fact that Alstom is well known as a leader on the coal side of the global power market, which GE was not, while GE is a leader on the natural gas side of the global power market. As a result, perhaps more so than any other potential acquisition target, Alstom offers a global power market business that is perfectly complementary and minimally redundant. Morgan Stanley offers a balanced bear perspective of this topic.
Divestiture of Appliances Business to Electrolux
In September, GE announced that Electrolux (OTCPK:ELUXY), Swedish maker of the Frigidaire brand, is buying GEs appliances unit for $3.3 billion, which is far more than the $2-2.5B analysts were predicting right up to when the deal was announced. After abandoning a first try in the wake of the 2008 financial crisis, GE reached this deal as its second attempt to sell the 100-year-old unit due to very low margins. The deal is expected to close in 2015. The following excerpts from the press release immediately jumped out at me:
As part of the transaction, GE has entered into a long-term agreement with Electrolux to continue use of the GE Appliances brand hellip; Electrolux is the right partner for growth of GE Appliances.
Why does that matter? Most of us dont buy oil and gas drilling systems or jet engines every day, so appliances were the last major line of consumer-facing products GE had. This deal nearly doubles Electroluxs North America business and, according to a The Wall Street Journal article, catapults Electrolux into the number one spot for US white goods, now with a 26.5% market share that surpasses now number-two Whirlpool, as well as all other competitors.
That means GE gets the best of all worlds -- a paltry $3.3B spending change in the wallet, all the benefits of constant broad-based brand exposure from the now number-one seller of household appliances, yet none of the costs or other responsibilities of manufacturing and selling low-margin products. You may think: who cares? Perhaps consider that, according to the Forbes Worlds Most Valuable Brands list, that little blue GE logo represents the seventh most valuable brand on the planet and is valued at $37.1B. Still think brand doesnt matter? As an anecdotal example, coincidentally, every major appliance in my home is GE brand, except a Frigidaire fridge. I love everything about this deal.
Initial Public Offering [IPO] of Synchrony Financial
In July, GE completed the IPO of its North American retail finance business, Synchrony Financial (NYSE:SYF), which is the largest issuer of store-brand credit cards in the US The offering raised $2.88B, despite having initially faced a tepid response from the market, with the SYF shares opening at the bottom of the $23-26 priced range. However, SYF has since traded up more than 26% to $29. GE currently still owns an 85% stake in SYF, but plans to complete its exit from the business via a split-off transaction in late 2015.
GE will retain a financial services business with a commercial focus to provide financing to the companys industrial customers, which involves less risk than a consumer-market finance business. That was the original purpose for which GE entered the financing business, so returning to that model should further restore the confidence of both customers and shareholders. Theres not much else to say about this deal because, frankly, its a no-brainer for the new GE.
Other Smaller Deals That You May Not Have Heard About
To support several interrelated points, Ill touch on some of the most recent relatively small acquisitions and divestitures that often go unnoticed. With at least a deal or two each month for quite some time now, GE has actually been restructuring pretty quickly for such a large and globally-dispersed company.
More important than the speed is the financial potential. While such deals may seem insignificant after discussing a $10-20 billion deal, one billion and a few hundred million dollars here and there adds up pretty quickly. Those resulting funds could be used to finance even more growth, whether via more large and small acquisitions or organic growth from research and development (Ramp;D is touched on at the very end of this article). Finally, these smaller deals, which we often dont hear about at all, collectively help position GE for the future.
This morning (November 13), Reuters reported that two sources familiar with the matter stated that Hungarys government plans to buy GE Capitals local Budapest Bank and the sale is imminent. The deal value wasnt reported.
Earlier this month, Aviv REIT (NYSE:AVIV) announced [pdf] that it will acquire 28 properties and an office building from a wholly-owned subsidiary of GE for $305M. Located across five states, these properties include 23 skilled nursing facilities, 4 assisted living facilities, 1 independent living facility and 1 office building. The deal is expected to close in December. This part isnt relevant to the GE story, but this deal came one week after Omega Healthcare Investors (NYSE:OHI) announced plans to acquire AVIV. I happen to hold a position in OHI, which is how I heard about this under-the-radar deal. True, $305M cant move the needle at GE, but its not peanuts either, so it can certainly be spent better than owning nursing homes and Im encouraged that GE now sees that.
In late October, The Wall Street Journal reported that GE is in early-stage talks to sell its stakes, likely worth more than $1 billion, in its South Korean auto-financing and credit-card businesses. According to that report, GE put around $1B worth of equity into those joint ventures, has already recouped some of its original investment via dividends, and the stakes are likely to sell for at least half of book value, which was $2.1B at the end of 2013. The JVs began in 2004 in partnership with Hyundai. This deal would be another step toward reducing GEs consumer finance exposure, so it makes perfect sense.
In October, GE announced that it would acquire Milestone Aviation Group, an Ireland-based helicopter leasing company, for $1.775B. At the time the deal was announced, Milestones fleet included 168 helicopters worth $2.8B, along with a $3B forward order and option book with manufacturers. The helicopters in the Milestone fleet are primarily used in offshore oil and gas, search and rescue, emergency medical services and mining, and are currently leased to 31 operators in 25 countries. I believe that both the industries and the global dispersion of the fleet suit the new GE. The deal is expected to close in 2015.
In July, GE announced plans to acquire Monsal, a UK biosolids and biowaste renewable energy company. Financial details werent disclosed and the value cannot be independently estimated, since Monsal was a privately owned and private equity backed business. GE plans to integrate Monsals technologies with its own and proliferate them across the world to help municipalities and industrial manufacturers shift away from disposing of wastewater treatment byproducts to generating renewable energy. Considering that Power amp; Water is one of GEs largest units, this is consistent with the new industrial focus.
In June, Spains Banco Santander (NYSE:SAN) announced that it would buy for $953M GE Money Bank, which is the GE consumer finance business that operates in Sweden, Norway and Denmark. The deal should close this quarter and is yet another logical step in reducing GEs consumer finance exposure.
I didnt dive deeply into every deal because that would have made this article even longer, but also because my main focus at this time is whether each deal makes sense from a long-term positioning standpoint. Financial performance is a byproduct of strong strategy and execution, and everything GE has been doing in recent years indicates strong strategy and execution. I believe thats because, unlike anything else, a near-death experience inspires people (and companies) to stop taking things for granted. Perhaps the 2008 financial crisis helped the GE Board refocus on a plan to secure a long and healthy future for the company. In fact, I would bet that Warren Buffetts 2008 bailout of GE, as well as his 2013 exercise of warrants for 10.7 million shares, came with some strategy-related advice (and conditions) that the public will never hear about.
Industrial Segments Backlog Growth
As I mention each time I discuss GE, my view is that the GE story is all about backlog growth and margin expansion, since the company is in a transitional state wherein it still has to constantly prove that it can once again act like a successful multi-industry conglomerate. Or, said another way, prove that it can consistently maintain strong backlogs and margins, since backlog drives revenues and margins determine the earnings retained from revenues.
GEs backlog is now a record $250B, which is up by about $21B, or 10%, over the past twelve months. In fact, as you can see from the chart below, GE hit a new record backlog every quarter for the past two years (since 2013Q3) and it may not be much longer before GE is at double its backlog level from 2007.
Significant contributors to the $250B backlog are the $36B in new orders for aircraft engines that GE took at the Farnborough Airshow in July. The airshow orders include more than 1,100 aircraft engines, many of which are for planes that have not yet been built, by the way. Thats why Boeing (NYSE:BA) has a huge backlog too (nearly $500B), as do all major manufacturers of industrial equipment. In other words, no GE customer would be very happy if they had to spend to store hundreds of aircraft engines that are the size of a small car for years while aircraft are being built. This is one reason a backlog is normal, and actually extremely important, for all major industrial companies like GE.
As an interesting anecdote, you might notice that the GE backlog is now only about $15B below the entire GE market capitalization. Actually, I mention that mainly because I enjoy opportunities to say only right before $15B. Sorry, I couldnt help myself hellip; Ill get back to business now though.
All in all, Im satisfied with the backlog growth that GE is showing, since the growth in the most recent quarter was the strongest all year and the portion from higher-margin services has been consistently hovering at a high level.
(click to enlarge)Source: compiled by author from various GE presentations
Industrial Segments Margin Expansion
One way to think about why margins are so important for a company the size of GE is evident in the law of large numbers, which shows why its inherently almost impossible for any company with $150B in revenue to grow revenue in large increments. At the same time, there are obviously benefits to such large amounts of revenue. Thats where margins come in. Just like bringing in more revenue dollars has a major impact on profitability, so does keeping more of each revenue dollar, and thats exactly what GE has been doing.
For the just-reported quarter, year-to-date industrial segments margins were up 50 basis points [bps] at 16.3%, which is up 90 bps year-over-year. GE has stated goals of 70 bps year-over-year margins growth to reach 17% industrial segments margins by 2016. So, again, targets are being met, everything is on track and Im satisfied with the GE margins performance. A notable related accomplishment is that services margins increased 170 bps year-to-date.
With the very healthy and fast-growing $250B backlog, GE should be able to continue pulling in strong revenue. And, since margin expansion targets are being met, GE will retain a larger cut of the $250B backlog as it converts into revenue. Thus, all indications are that earnings should remain healthy too.
(click to enlarge)Source: GE presentation
Industrial Segments Cost Cuts
Before writing a new article, I re-read my previous article(s) on the company, since its impossible to recall every detail about dozens of companies months after I write an article. In doing so, I sometimes find things that I wish I had said a little differently. In my last GE article, I said the GE story is about the margin expansion and backlog growth from restructuring, not the cost cutting. However, that was in the context of broader comments after some pundit on CNBC claimed that cost cuts were the only way GE beat quarterly estimates.
What I shouldve said is that cost cuts are obviously an inherent part of every restructuring and margin expansion effort, but are not the main driver for GE. As I did point out at the time, GE cost cuts are not news to anyone who pays attention, and GE had just spent $9B on acquisitions, so of course some deals brought redundancy to cut. My point is that GE is indeed successfully reducing the portion of sales lost to Selling, General and Administrative [SGamp;A] costs, as all companies attempt to do. Thats a positive, not a negative. During the most recent conference call, CEO Jeff Immelt commented:
We continue to generate benefits from our simplification efforts and are on track for over $1 billion of costs out for the year. First on structural SGamp;A, weve taken out $674 million year-to-date on our way to over $1 billion for the year. As a result of these actions, industrial SGamp;A as a percent of sales has come down steadily.
(click to enlarge)Source: GE presentationValuation Updates (Upside Potential amp; Downside Risk)
Price-To-Earnings Ratio [P/E] Valuations
The last four quarters of earnings per share [EPS] from GE were $0.38, $0.39 $0.33 and $0.53 ($1.63 total). With the trailing-twelve EPS of $1.63, and the $26.38 current share price, the trailing-twelve P/E is 16.18x. With that same 16.18x P/E applied to the current 2014FY consensus of $1.67, the share price result is $27.02. With the next-year EPS estimate of $1.80 (which I believe is too low) the forward P/E ratio is 14.65x. With the current 16.18x trailing P/E ratio applied to the 2015FY estimate of $1.80, the share price would become $29.12 in twelve months when the EPS for 2015FY becomes a trailing-twelve figure. That is with the market valuing GE exactly the same as it does today.
According to Samp;P Capital IQ historical data, over the past ten years, the P/E ratio for GE has hovered in a 14-22x range, when the extreme outliers on the high and low ends are discarded. The average of that range is 18x, but to get to a $30 share price with the EPS for 2015FY remaining at $1.80, the P/E ratio would only rise slightly to 16.67x. Obviously, if the EPS for 2015FY rises, as I believe it will, the P/E doesnt even need to reach 16.67x for the share price to reach $30. With that said, as you will see in the Relative Valuations section below, the typical P/E for any large-cap industrial conglomerate is 18x-20x. If GE were to trade at an 18x multiple, the share price would be $29.34 with the actual $1.63 trailing-twelve EPS, $30.06 with the 2014FY estimate of $1.67, and $32.40 with the current 2015FY consensus estimate of $1.80.
P/E Ratio Relative Valuations
Note that, with the $26.38 GE share price, the trailing-twelve P/E that FinViz lists could only be based on $1.48 EPS, even though the actual trailing-twelve EPS is $1.63 (all twelve-month EPS from GE has been higher than $1.48 since 2012). Thats why the FinViz trailing-twelve P/E shown below is different from the 16.18x I referred to above and used in those calculations. Since the FinViz source would obviously use the same method of calculating the trailing P/E for all companies, I included all of the peer-group data from that source to make the comparisons fair. Also to make comparisons fair, I only included large-cap publicly-traded industrial conglomerates with dividend yields above 2%.