General Electric Company (NYSE: GE)'s Healthcare segment is worth between $18.5 billion and $23.0 billion down 30% at the low end from the July value of $24.1 billion and $59.1 billion, according to my calculations.

GE Healthcare manufactures, sells and services medical equipment including equipment for magnetic resonance (MR), computed tomography (CT), positron emission tomography (PET) imaging, x-ray, patient monitoring, diagnostic cardiology, nuclear imaging, ultrasound, bone densitometry, anesthesiology and oxygen therapy, neonatal and critical care, and therapy.

GE Healthcare had a fair 2007. Its revenues rose 3% to $17.0 billion in 2007 as the effects of the weaker U.S. dollar ($0.5 billion) and higher volume ($0.4 billion) more than offset lower prices ($0.5 billion). Increased sales in the international diagnostic imaging, clinical systems and life sciences businesses were partially offset by price pressures on U.S. equipment sales and lower sales of surgical imaging equipment resulting from regulatory suspensions of equipment shipments.

Segment profit of $3.1 billion in 2007 was 3% lower than in 2006 as lower prices ($0.5 billion) and higher labor and other costs ($0.2 billion) were substantially offset by the effects of productivity ($0.4 billion) and higher volume ($0.1 billion.

Based on GE Healthcare's estimated net income of $2.57 billion in 2007, here are the range of valuations based on the Price/Earnings ratios of the following peer companies (which fell since July):

• Siemens AG (NYSE: SI) P/E: 8.9 (July: 27.4): $23.0 billion
• Koninklijke Philips Electronics (NYSE: PHG) P/E: 7.2 (July: 11.1). $18.5 billion