General Dynamics Corporation

LSE:0IUC Stock Report

Market Cap: US$72.3b

General Dynamics Valuation

Is 0IUC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0IUC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0IUC ($263.46) is trading below our estimate of fair value ($409.81)

Significantly Below Fair Value: 0IUC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0IUC?

Key metric: As 0IUC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0IUC. This is calculated by dividing 0IUC's market cap by their current earnings.
What is 0IUC's PE Ratio?
PE Ratio19.9x
EarningsUS$3.64b
Market CapUS$72.30b

Price to Earnings Ratio vs Peers

How does 0IUC's PE Ratio compare to its peers?

The above table shows the PE ratio for 0IUC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.4x
RR. Rolls-Royce Holdings
21.2x-0.9%UK£49.4b
BA. BAE Systems
18.7x8.0%UK£34.5b
BAB Babcock International Group
13x14.2%UK£2.5b
QQ. QinetiQ Group
16.8x15.1%UK£2.3b
0IUC General Dynamics
19.9x8.9%US$72.3b

Price-To-Earnings vs Peers: 0IUC is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does 0IUC's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0IUC 19.9xIndustry Avg. 24.6xNo. of Companies8PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0IUC is good value based on its Price-To-Earnings Ratio (19.9x) compared to the European Aerospace & Defense industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0IUC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0IUC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.9x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: 0IUC is good value based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0IUC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$263.46
US$320.63
+21.7%
8.3%US$354.00US$245.00n/a19
Dec ’25US$284.01
US$331.10
+16.6%
6.2%US$365.00US$283.00n/a21
Nov ’25US$294.21
US$330.07
+12.2%
6.1%US$365.00US$283.00n/a21
Oct ’25US$305.80
US$323.67
+5.8%
4.4%US$345.00US$289.00n/a23
Sep ’25US$295.82
US$324.28
+9.6%
4.4%US$345.00US$289.00n/a23
Aug ’25US$292.37
US$322.20
+10.2%
4.6%US$345.00US$289.00n/a22
Jul ’25US$287.65
US$316.50
+10.0%
5.4%US$345.00US$271.00n/a21
Jun ’25US$296.73
US$314.27
+5.9%
5.1%US$345.00US$271.00n/a20
May ’25US$286.53
US$309.92
+8.2%
6.0%US$345.00US$271.00n/a21
Apr ’25US$282.99
US$294.66
+4.1%
7.6%US$345.00US$253.00n/a23
Mar ’25US$271.83
US$290.93
+7.0%
7.1%US$345.00US$253.00n/a23
Feb ’25US$265.79
US$289.89
+9.1%
7.4%US$345.00US$253.00n/a23
Jan ’25US$259.27
US$276.61
+6.7%
8.9%US$345.00US$235.00US$263.0922
Dec ’24US$248.42
US$271.15
+9.2%
7.4%US$325.00US$235.00US$284.0122
Nov ’24US$243.69
US$270.41
+11.0%
7.5%US$325.00US$235.00US$294.2122
Oct ’24US$222.35
US$263.90
+18.7%
8.8%US$325.00US$227.00US$305.8021
Sep ’24US$226.20
US$264.10
+16.8%
8.8%US$325.00US$227.00US$295.8220
Aug ’24US$224.43
US$263.75
+17.5%
8.7%US$325.00US$227.00US$292.3720
Jul ’24US$215.52
US$260.95
+21.1%
9.8%US$325.00US$218.00US$287.6519
Jun ’24US$205.38
US$261.00
+27.1%
10.1%US$325.00US$218.00US$296.7318
May ’24US$217.28
US$261.50
+20.4%
11.0%US$325.00US$218.00US$286.5318
Apr ’24US$227.87
US$267.50
+17.4%
9.5%US$325.00US$223.00US$282.9918
Mar ’24US$227.94
US$267.50
+17.4%
9.5%US$325.00US$223.00US$271.8318
Feb ’24US$230.51
US$265.11
+15.0%
10.0%US$325.00US$222.00US$265.7918
Jan ’24US$245.74
US$270.89
+10.2%
10.2%US$325.00US$227.00US$259.2719

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/04 07:54
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/29
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

General Dynamics Corporation is covered by 45 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Peter ArmentBaird
Joseph CampbellBarclays