General Dynamics Corporation

NYSE:GD Stock Report

Market Cap: US$77.8b

General Dynamics Valuation

Is GD 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 GD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GD ($283.89) is trading below our estimate of fair value ($435.94)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GD 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/Revenue2x
Enterprise Value/EBITDA18.3x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does GD's PE Ratio compare to its peers?

The above table shows the PE ratio for GD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.2x
NOC Northrop Grumman
29.6x13.6%US$64.0b
TDG TransDigm Group
47.9x15.3%US$69.5b
LMT Lockheed Martin
16.4x0.8%US$111.3b
RTX RTX
38.7x15.5%US$134.4b
GD General Dynamics
23x9.4%US$77.8b

Price-To-Earnings vs Peers: GD is good value based on its Price-To-Earnings Ratio (23x) compared to the peer average (33.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: GD is good value based on its Price-To-Earnings Ratio (23x) compared to the US Aerospace & Defense industry average (35.5x).


Price to Earnings Ratio vs Fair Ratio

What is GD'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.

GD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23x
Fair PE Ratio25.1x

Price-To-Earnings vs Fair Ratio: GD is good value based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).


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 GD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$283.89
US$316.50
+11.5%
5.4%US$345.00US$271.00n/a21
Jul ’25US$287.87
US$316.50
+9.9%
5.4%US$345.00US$271.00n/a21
Jun ’25US$299.77
US$314.27
+4.8%
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$291.55
US$293.93
+0.8%
7.6%US$345.00US$253.00n/a23
Mar ’25US$271.95
US$290.19
+6.7%
7.1%US$345.00US$253.00n/a23
Feb ’25US$266.87
US$289.15
+8.3%
7.4%US$345.00US$253.00n/a23
Jan ’25US$259.67
US$276.61
+6.5%
8.9%US$345.00US$235.00n/a22
Dec ’24US$249.69
US$271.15
+8.6%
7.4%US$325.00US$235.00n/a22
Nov ’24US$242.70
US$270.41
+11.4%
7.5%US$325.00US$235.00n/a22
Oct ’24US$220.97
US$263.90
+19.4%
8.8%US$325.00US$227.00n/a21
Sep ’24US$226.37
US$264.10
+16.7%
8.8%US$325.00US$227.00n/a20
Aug ’24US$225.34
US$263.75
+17.0%
8.7%US$325.00US$227.00n/a20
Jul ’24US$215.15
US$260.95
+21.3%
9.8%US$325.00US$218.00US$287.8719
Jun ’24US$205.33
US$261.00
+27.1%
10.1%US$325.00US$218.00US$299.7718
May ’24US$218.13
US$261.50
+19.9%
11.0%US$325.00US$218.00US$286.5318
Apr ’24US$228.21
US$267.50
+17.2%
9.5%US$325.00US$223.00US$291.5518
Mar ’24US$227.69
US$267.50
+17.5%
9.5%US$325.00US$223.00US$271.9518
Feb ’24US$230.45
US$265.11
+15.0%
10.0%US$325.00US$222.00US$266.8718
Jan ’24US$248.11
US$270.89
+9.2%
10.2%US$325.00US$227.00US$259.6719
Dec ’23US$252.27
US$266.56
+5.7%
10.6%US$325.00US$211.00US$249.6918
Nov ’23US$249.91
US$265.71
+6.3%
10.5%US$325.00US$211.00US$242.7017
Oct ’23US$212.17
US$260.38
+22.7%
10.2%US$314.00US$212.00US$220.9716
Sep ’23US$225.37
US$260.81
+15.7%
10.1%US$314.00US$212.00US$226.3716
Aug ’23US$226.18
US$259.20
+14.6%
10.7%US$314.00US$212.00US$225.3415
Jul ’23US$223.86
US$264.50
+18.2%
10.9%US$314.00US$215.00US$215.1514

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


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