A Look at RTX's Valuation Following GTF Advantage Engine's European Certification News

Pratt & Whitney, a division of RTX (NYSE:RTX), has just secured European type certification for its GTF Advantage engine after previously receiving FAA approval. This clears the path for passenger service entry in 2026.

This milestone signals RTX’s growing presence in the next-generation aircraft engine market. The GTF Advantage is expected to deliver higher thrust and better fuel efficiency for operators in the future.

See our latest analysis for RTX.

RTX’s steady climb this year reflects mounting optimism, with the latest share price at $157.95 and a strong year-to-date price return of 36.15%. Recent momentum has been fueled by news such as the GTF Advantage's certification, Collins Aerospace's new smart monitor rollout, and Raytheon’s next-gen radar launches, underscoring RTX’s active innovation and expanding global reach. Looking at the bigger picture, RTX’s total shareholder return has outpaced many peers, delivering nearly 28% over the past year and an impressive 91% over three years. Performance trends suggest positive sentiment and solid long-term growth prospects.

If RTX’s string of aerospace wins has you watching the industry, now’s the perfect moment to explore other sector leaders—discover See the full list for free.

But with RTX surging on a wave of good news, the key debate is whether market optimism has gone too far or if there is still room for upside. Is this a rare buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 5.2% Undervalued

With the consensus narrative placing fair value at $166.56, which is above the latest close of $157.95, RTX is seen as offering potential value at current levels. This sets up a pivotal discussion on what drives analysts’ optimism and whether the underlying metrics justify the upside.

Robust and growing backlog, highlighted by a 1.86 quarter book-to-bill ratio, $236 billion backlog (up 15% year-over-year), and major new international contracts (e.g., EU, MENA, Asia-Pacific) indicate RTX is well-positioned to benefit from sustained increases in global defense spending and heightened geopolitical tensions. This creates strong visibility for future revenue growth.

Read the complete narrative.

Want to know why analysts believe RTX could outperform its blue-chip rivals? Hidden within this narrative is a surprising growth runway, one grounded not just in orders, but in projected margin improvements and ambitious future profit multiples. Can you guess the bold financial story the experts are telling? Dive in and see the crucial numbers that could reshape how you value the stock.

Result: Fair Value of $166.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing tariff uncertainties and potential jet engine cost overruns remain factors that could challenge RTX's current growth expectations and investor enthusiasm.

Find out about the key risks to this RTX narrative.

Build Your Own RTX Narrative

If you see the story differently or want to put your own analysis to the test, you can craft a custom narrative in just a few minutes. Do it your way

Prefer to form your own view? Our platform makes it easy to explore a stock's fundamentals and create your own narrative in minutes.

Looking for More Investment Ideas?

Don’t let your next opportunity pass by. With so much happening beyond RTX, open the door to smarter investing and see what’s trending, surging, or quietly outperforming right now.

• Capture high yields by reviewing these 20 dividend stocks with yields > 3% and uncover companies consistently rewarding investors with dividends above 3%.
• Get ahead of industry shifts by evaluating these 24 AI penny stocks powering innovations with artificial intelligence and transforming entire markets.
• Unlock hidden value by checking out these 868 undervalued stocks based on cash flows and targeting stocks that may be trading below their true potential based on cash flow analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com