General Dynamics Corporation

NYSE:GD Stock Report

Market Cap: US$72.8b

General Dynamics Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 ($262.27) is trading below our estimate of fair value ($407.74)

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 Ratio19.8x
EarningsUS$3.64b
Market CapUS$72.81b

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 Average31.6x
NOC Northrop Grumman
28.7x12.1%US$70.0b
TDG TransDigm Group
47x17.6%US$71.7b
LHX L3Harris Technologies
33.5x20.7%US$41.4b
LMT Lockheed Martin
17.1x2.0%US$116.3b
GD General Dynamics
19.8x9.0%US$72.8b

Price-To-Earnings vs Peers: GD is good value based on its Price-To-Earnings Ratio (19.8x) compared to the peer average (31.6x).

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
2.9xn/aUS$51.35m
ETCC Environmental Tectonics
4.6xn/aUS$28.96m
AWIN AERWINS Technologies
0.0008xn/aUS$2.40k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
GD 19.8xIndustry Avg. 32.8xNo. 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 (19.8x) compared to the US Aerospace & Defense industry average (32.8x).

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 Ratio19.8x
Fair PE Ratio26.5x

Price-To-Earnings vs Fair Ratio: GD is good value based on its Price-To-Earnings Ratio (19.8x) compared to the estimated Fair Price-To-Earnings Ratio (26.5x).

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$262.27
US$321.75
+22.7%
8.0%US$354.00US$245.00n/a20
Dec ’25US$284.01
US$331.10
+16.6%
6.2%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$235.00US$284.0122
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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 04:42
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/29
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

General Dynamics Corporation is covered by 47 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Peter ArmentBaird
Ishan MajumdarBaptista Research