Using the industry peer median P/E multiple (trailing + forward), Axon Enterprise, Inc. (AXON) has a fair value of $82.84 based on 7 comparable companies in the Aerospace & Defense industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Axon Enterprise, Inc.AXON | 45,501 | 301.3x | 88.5x |
| FedEx CorporationFDX | 83,775 | 20.9x | 17.9x |
| Quanta Services, Inc.PWR | 82,398 | 81.0x | 42.2x |
| Cummins Inc.CMI | 73,414 | 25.9x | 25.9x |
| L3Harris Technologies, Inc.LHX | 65,431 | 41.0x | 30.2x |
| TransDigm Group IncorporatedTDG | 65,151 | 36.0x | 29.7x |
| PACCAR IncPCAR | 60,701 | 25.6x | 22.9x |
| United Rentals, Inc.URI | 47,250 | 19.2x | 17.2x |
| Industry Median | 25.9x | 25.9x | |
| (*) Profit after tax | 125 | 514 | |
| Equity Value | 3,238 | 13,330 | |
| (/) Outstanding shares | 100 | 100 | |
| Fair Price | $32 | $133 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.