We’ve recently updated our valuation analysis.

Boeing Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA100x
PEG Ration/a

Price to Sales Ratio vs Peers

How does BA's PS Ratio compare to its peers?

The above table shows the PS ratio for BA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
EMBR3 Embraer
0.6x10.1%R$12.1b
AIR Airbus
1.7x10.8%€92.2b
BBD.B Bombardier
0.8x5.0%CA$6.2b
LMT Lockheed Martin
1.8x2.7%US$116.7b
BA Boeing
1.9x10.9%US$125.2b

Price-To-Sales vs Peers: BA is expensive based on its Price-To-Sales Ratio (1.9x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does BA's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.1%
n/an/an/a

Price-To-Sales vs Industry: BA is expensive based on its Price-To-Sales Ratio (1.9x) compared to the US Aerospace & Defense industry average (1.8x)


Price to Sales Ratio vs Fair Ratio

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

BA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: BA is expensive based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


Share Price vs Fair Value

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

Below Fair Value: BA ($206.01) is trading below our estimate of fair value ($342.25)

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


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 BA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$206.01
US$225.48
+9.5%
12.0%US$261.00US$160.00n/a21
Jan ’24US$190.49
US$203.91
+7.0%
14.3%US$250.00US$121.00n/a20
Dec ’23US$175.78
US$192.26
+9.4%
15.7%US$250.00US$121.00n/a20
Nov ’23US$143.38
US$189.24
+32.0%
17.3%US$250.00US$98.00n/a21
Oct ’23US$121.08
US$215.11
+77.7%
16.7%US$298.00US$160.00n/a19
Sep ’23US$153.66
US$214.35
+39.5%
16.5%US$298.00US$160.00n/a19
Aug ’23US$169.07
US$213.98
+26.6%
16.6%US$298.00US$160.00n/a19
Jul ’23US$139.84
US$217.32
+55.4%
17.6%US$298.00US$150.00n/a19
Jun ’23US$130.65
US$218.19
+67.0%
17.7%US$298.00US$150.00n/a21
May ’23US$148.84
US$229.52
+54.2%
13.3%US$298.00US$180.00n/a21
Apr ’23US$190.76
US$252.86
+32.6%
13.8%US$307.00US$180.00n/a21
Mar ’23US$194.91
US$256.40
+31.5%
13.7%US$307.00US$180.00n/a20
Feb ’23US$208.34
US$261.42
+25.5%
11.7%US$307.00US$180.00US$214.7519
Jan ’23US$201.32
US$263.05
+30.7%
12.1%US$306.00US$180.00US$190.4919
Dec ’22US$188.19
US$263.47
+40.0%
11.7%US$306.00US$180.00US$175.7819
Nov ’22US$214.58
US$264.05
+23.1%
12.5%US$314.00US$180.00US$143.3820
Oct ’22US$226.00
US$272.79
+20.7%
10.4%US$314.00US$220.00US$121.0819
Sep ’22US$218.12
US$272.74
+25.0%
11.0%US$314.00US$210.00US$153.6619
Aug ’22US$226.48
US$266.76
+17.8%
13.6%US$314.00US$180.00US$169.0721
Jul ’22US$239.73
US$263.83
+10.1%
14.3%US$314.00US$180.00US$139.8423
Jun ’22US$254.73
US$259.48
+1.9%
16.3%US$314.00US$165.00US$130.6523
May ’22US$234.31
US$251.50
+7.3%
17.6%US$310.00US$165.00US$148.8422
Apr ’22US$252.96
US$242.65
-4.1%
18.0%US$310.00US$165.00US$190.7623
Mar ’22US$224.39
US$231.91
+3.4%
16.8%US$306.00US$165.00US$194.9123
Feb ’22US$195.84
US$231.91
+18.4%
17.1%US$306.00US$165.00US$208.3423

Analyst Forecast: Target price is less than 20% higher than the current share price.


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