RTX Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: RTX ($103.68) is trading above our estimate of fair value ($99.08)

Significantly Below Fair Value: RTX is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RTX 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/EBITDA18.7x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
LMT Lockheed Martin
16.6x0.8%US$111.3b
GE General Electric
42.5x12.2%US$174.7b
GD General Dynamics
23.6x9.4%US$78.2b
NOC Northrop Grumman
29.8x13.6%US$63.9b
RTX RTX
39.6x15.5%US$134.9b

Price-To-Earnings vs Peers: RTX is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (28.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RTX is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the US Aerospace & Defense industry average (37.5x).


Price to Earnings Ratio vs Fair Ratio

What is RTX'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.

RTX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ratio33x

Price-To-Earnings vs Fair Ratio: RTX is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the estimated Fair Price-To-Earnings Ratio (33x).


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 RTX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$103.68
US$107.41
+3.6%
10.1%US$139.00US$90.00n/a22
Jul ’25US$99.55
US$107.10
+7.6%
10.5%US$139.00US$86.00n/a22
Jun ’25US$107.81
US$107.10
-0.7%
10.8%US$141.00US$86.00n/a22
May ’25US$101.22
US$105.82
+4.5%
9.0%US$120.00US$86.00n/a22
Apr ’25US$97.76
US$98.03
+0.3%
9.9%US$120.00US$85.00n/a23
Mar ’25US$89.80
US$96.77
+7.8%
8.2%US$112.00US$85.00n/a23
Feb ’25US$92.17
US$97.01
+5.2%
8.8%US$112.00US$80.00n/a23
Jan ’25US$84.14
US$90.97
+8.1%
12.4%US$112.00US$75.00n/a23
Dec ’24US$82.32
US$90.41
+9.8%
12.3%US$112.00US$75.00n/a23
Nov ’24US$82.15
US$91.06
+10.8%
12.0%US$112.00US$75.00n/a23
Oct ’24US$71.97
US$91.64
+27.3%
12.6%US$111.00US$70.00n/a24
Sep ’24US$86.28
US$100.93
+17.0%
6.1%US$112.00US$91.00n/a23
Aug ’24US$87.97
US$101.64
+15.5%
6.5%US$112.00US$91.00n/a21
Jul ’24US$97.96
US$109.27
+11.5%
5.8%US$120.00US$98.00US$99.5522
Jun ’24US$94.09
US$109.50
+16.4%
5.9%US$120.00US$98.00US$107.8122
May ’24US$100.33
US$109.98
+9.6%
5.6%US$120.00US$100.00US$101.2220
Apr ’24US$97.93
US$109.10
+11.4%
5.3%US$120.00US$100.00US$97.7620
Mar ’24US$98.04
US$109.15
+11.3%
5.3%US$120.00US$100.00US$89.8020
Feb ’24US$98.42
US$110.00
+11.8%
5.3%US$120.00US$100.00US$92.1719
Jan ’24US$100.92
US$106.11
+5.1%
9.3%US$120.00US$83.00US$84.1420
Dec ’23US$99.50
US$104.53
+5.1%
9.6%US$120.00US$83.00US$82.3219
Nov ’23US$95.55
US$103.84
+8.7%
10.1%US$120.00US$83.00US$82.1518
Oct ’23US$81.86
US$108.75
+32.8%
8.3%US$124.00US$90.00US$71.9718
Sep ’23US$88.03
US$109.31
+24.2%
8.0%US$124.00US$90.00US$86.2818
Aug ’23US$93.24
US$109.32
+17.2%
8.3%US$124.00US$90.00US$87.9717
Jul ’23US$97.02
US$113.24
+16.7%
8.2%US$130.00US$94.00US$97.9617

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


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