Is Boeing Attractively Priced After Recent Supply Chain and FAA News in 2025?

• Wondering if Boeing stock is a smart buy or overpriced right now? If you're trying to make sense of its value, you're not alone.
• Shares are currently trading at $182.44, up 6.2% for the year to date, but down 17.6% over the past month. This reflects quick shifts in investor sentiment.
• Much of the recent volatility has been tied to ongoing headlines about supply chain disruptions and FAA safety updates within the aerospace sector. Industry news and regulatory developments continue to play a big role in how the stock moves day to day.
• By our checks, Boeing scores 6 out of 6 for valuation, meaning it looks undervalued across the board using the standard approaches. Is there more to the story? Let's dive into the different valuation methods and finish up with a perspective that could transform how you look at Boeing's price tag.

Find out why Boeing's 21.0% return over the last year is lagging behind its peers.

Approach 1: Boeing Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates what a company is worth today by forecasting its future cash flows and then discounting them back to their present value. For Boeing, this method uses a 2 Stage Free Cash Flow to Equity approach to project how much cash the business will generate for shareholders over the coming years.

Currently, Boeing's last twelve months of Free Cash Flow sits at negative $5.9 billion. Despite this, analysts expect a significant turnaround, with projected Free Cash Flow reaching $12.2 billion by 2029. Over the next five to ten years, future cash flows are expected to grow steadily, with analyst estimates for the first several years and further numbers extrapolated by Simply Wall St. The DCF aggregates these projections and discounts them to reflect the time value of money and risk.

Based on the model, Boeing's estimated intrinsic value comes out to $350.79 per share. This is about 48.0 percent higher than the current share price of $182.44, suggesting the stock is meaningfully undervalued according to long-term cash flow forecasts.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Boeing is undervalued by 48.0%. Track this in your watchlist or portfolio, or discover 926 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Boeing.

Approach 2: Boeing Price vs Sales

The Price-to-Sales (P/S) ratio is often a go-to valuation metric for companies like Boeing, especially when profitability is volatile or negative, as it is now. This metric compares a company’s market capitalization to its total sales, providing insight into how much investors are willing to pay for each dollar of revenue. For businesses with inconsistent earnings, the P/S ratio offers a useful alternative to Price-to-Earnings and enables fairer comparisons among industry peers.

What’s considered a “normal” or “fair” P/S ratio varies considerably. High-growth expectations or strong margins may warrant a higher multiple, while greater business risks or slower growth usually mean a lower one. The average P/S ratio can also be influenced by overall investor optimism or pessimism within a sector.

Boeing’s current Price-to-Sales ratio is 1.72x. For context, the Aerospace & Defense industry averages about 2.98x, and similar peers are trading at 1.97x. To add more nuance, Simply Wall St calculates a proprietary Fair Ratio, which is a preferred multiple tailored for Boeing based on expected sales growth, profit forecasts, business risks, market cap, and industry characteristics. This Fair Ratio for Boeing is 1.96x, closely aligning with where its peers trade and very near Boeing’s own P/S ratio.

Using the Fair Ratio is particularly helpful because it adjusts for company-specific factors and broader industry dynamics, rather than relying solely on peer or industry comparisons. This provides a valuation measure that aligns more closely with Boeing’s current prospects and risks.

Given Boeing’s P/S of 1.72x is just a fraction below the Fair Ratio of 1.96x, the stock appears to be priced about right relative to its current fundamentals and outlook.

Result: ABOUT RIGHT

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1436 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Boeing Narrative

Earlier, we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your personalized story for a company, where you set your expectations for key numbers like future revenue, earnings, and fair value, but you also explain why you believe those numbers are achievable. Narratives connect the dots between what is happening at Boeing, your assumptions about its future, and how much you think its shares should actually be worth.

This approach is simple and accessible through Simply Wall St’s Community page. Millions of investors use Narratives to track their own views and see how others are thinking. By linking Boeing’s story to an actual financial forecast and valuation, Narratives help you decide whether to buy, hold, or sell by comparing your estimated Fair Value to the current share price. In addition, your Narrative dynamically updates alongside news releases, earnings results, and major events, so your outlook stays relevant as circumstances change.

For example, some Boeing investors are happy to pay up, betting that aircraft demand and backlog will drive earnings above $8 billion in the next few years; others see ongoing production and supply chain risks and would not buy unless fair value falls near $150 per share.

Do you think there's more to the story for Boeing? Head over to our Community to see what others are saying!

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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