General Dynamics Corporation

NYSE:GD Stock Report

Market Cap: US$79.1b

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 ($287.99) is trading below our estimate of fair value ($460.48)

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?

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

The above table shows the Price to Earnings ratio for GD. This is calculated by dividing GD's market cap by their current earnings.
What is GD's PE Ratio?
PE Ratio21.7x
EarningsUS$3.64b
Market CapUS$79.06b

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 Average33.9x
NOC Northrop Grumman
30.3x12.0%US$72.0b
TDG TransDigm Group
47.6x17.2%US$70.5b
LMT Lockheed Martin
19x2.0%US$126.8b
LHX L3Harris Technologies
38.8x20.7%US$46.8b
GD General Dynamics
21.7x9.2%US$79.1b

Price-To-Earnings vs Peers: GD is good value based on its Price-To-Earnings Ratio (21.7x) compared to the peer average (33.9x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
2.2xn/aUS$38.35m
ETCC Environmental Tectonics
4.7xn/aUS$30.05m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
GD 21.7xIndustry Avg. 34.1xNo. of Companies7PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GD is good value based on its Price-To-Earnings Ratio (21.7x) compared to the US Aerospace & Defense industry average (34.1x).

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 Ratio21.7x
Fair PE Ratio26.8x

Price-To-Earnings vs Fair Ratio: GD is good value based on its Price-To-Earnings Ratio (21.7x) compared to the estimated Fair Price-To-Earnings Ratio (26.8x).

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$287.99
US$330.14
+14.6%
6.1%US$365.00US$283.00n/a21
Nov ’25US$292.99
US$330.07
+12.7%
6.1%US$365.00US$283.00n/a21
Oct ’25US$305.33
US$323.67
+6.0%
4.4%US$345.00US$289.00n/a23
Sep ’25US$299.36
US$324.28
+8.3%
4.4%US$345.00US$289.00n/a23
Aug ’25US$293.45
US$322.20
+9.8%
4.6%US$345.00US$289.00n/a22
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$294.66
+1.1%
7.6%US$345.00US$253.00n/a23
Mar ’25US$271.95
US$290.93
+7.0%
7.1%US$345.00US$253.00n/a23
Feb ’25US$266.87
US$289.89
+8.6%
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$235.00US$292.9922
Oct ’24US$220.97
US$263.90
+19.4%
8.8%US$325.00US$227.00US$305.3321
Sep ’24US$226.37
US$264.10
+16.7%
8.8%US$325.00US$227.00US$299.3620
Aug ’24US$225.34
US$263.75
+17.0%
8.7%US$325.00US$227.00US$293.4520
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

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

Discover undervalued companies

NFI Group

CA$1.8b

Manufactures and sells buses in North America, the United Kingdom, rest of Europe, and the Asia Pacific.

NFYE.F

CA$10.95

7D

-4.1%

1Y

8.8%

Stanley Black & Decker

US$13.2b

Provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Other Americas, Europe, and Asia.

SWK

US$85.45

7D

-5.2%

1Y

-6.9%

Doman Building Materials Group

CA$810.9m

Through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada.

CWXZ.F

CA$6.50

7D

0.9%

1Y

33.4%