Using the industry peer median P/E multiple (trailing + forward), Huntington Ingalls Industries, Inc. (HII) has a fair value of $268.19 based on 3 comparable companies in the Aerospace & Defense industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Huntington Ingalls Industries, Inc.HII | 15,243 | 25.2x | 22.4x |
| Textron Inc.TXT | 15,595 | 17.5x | 13.9x |
| Avery Dennison CorporationAVY | 13,016 | 19.3x | 18.0x |
| Builders FirstSource, Inc.BLDR | 9,107 | 21.2x | 11.7x |
| Industry Median | 19.3x | 13.9x | |
| (*) Profit after tax | 605 | 679 | |
| Equity Value | 11,667 | 9,413 | |
| (/) Outstanding shares | 39 | 39 | |
| Fair Price | $297 | $240 | |
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.