Using the industry peer median P/E multiple (trailing + forward), General Dynamics Corporation (GD) has a fair value of $504.26 based on 9 comparable companies in the Aerospace & Defense industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| General Dynamics CorporationGD | 97,476 | 23.0x | 21.8x |
| GE AerospaceGE | 300,095 | 34.9x | 38.2x |
| RTX CorporationRTX | 257,874 | 38.7x | 28.1x |
| The Boeing CompanyBA | 153,421 | 78.8x | 149.1x |
| Lockheed Martin CorporationLMT | 145,078 | 29.2x | 20.9x |
| Northrop Grumman CorporationNOC | 98,495 | 23.9x | 24.8x |
| L3Harris Technologies, Inc.LHX | 65,431 | 41.0x | 30.2x |
| TransDigm Group IncorporatedTDG | 65,151 | 36.0x | 29.7x |
| Textron Inc.TXT | 15,595 | 17.5x | 13.9x |
| Huntington Ingalls Industries, Inc.HII | 15,227 | 25.2x | 22.5x |
| Industry Median | 34.9x | 28.1x | |
| (*) Profit after tax | 4,210 | 4,480 | |
| Equity Value | 146,782 | 129,454 | |
| (/) Outstanding shares | 274 | 274 | |
| Fair Price | $536 | $473 | |
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.