Boeing (BA): Assessing Valuation After a 19% Share Price Decline This Month

Boeing (BA) is trading slightly lower at the moment, with the stock drifting down about 0.3% today. Over the past month, Boeing shares have slipped almost 19%, catching the attention of value-seeking investors.

See our latest analysis for Boeing.

Despite Boeing’s recent dip, which follows a steady decline of nearly 19% in the past month, the big picture tells a more optimistic story. The 1-year total shareholder return stands at a solid 17%. This shows that while short-term share price momentum has faded, longer-term investors have still come out ahead as sentiment around risk and recovery in the sector shifts.

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But after a drop of almost 20% in the past month, are Boeing shares now attractively undervalued, or has the market already priced in the company’s expected recovery and future growth prospects?

Most Popular Narrative: 28% Undervalued

With Boeing closing at $179.12 while the most widely followed narrative suggests fair value is $249.32, there is a notable disconnect between recent price weakness and underlying growth expectations driving valuation confidence.

Production stabilization and planned rate increases for key aircraft models (737 MAX, 787) position Boeing to benefit directly from robust global demand for air travel. Driven by expanding middle-class populations and urbanization in emerging markets, these demand tailwinds should support outsized revenue growth and eventual operating margin expansion as fixed costs are spread over higher unit volumes.

Read the complete narrative.

Curious what numbers back up this sky-high target? The narrative hints at aggressive forecasts for future revenue, earnings, and margin turnaround, as well as a bold assumption about what investors will pay for future profits. Want to see the unconventional projections and the key debates that could reshape Boeing’s fair value?

Result: Fair Value of $249.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent production delays or continued negative margins could quickly undermine optimism and challenge the positive outlook for Boeing's recovery story.

Find out about the key risks to this Boeing narrative.

Build Your Own Boeing Narrative

If you’d rather draw your own conclusions, you can dive into the data and craft a unique Boeing story in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Boeing.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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