GD Valuation

General Dynamics Corp

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343.910

-0.15(-0.044%)1D

GD Relative Valuation

GD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GD is overvalued; if below, it's undervalued.

Historical Valuation

General Dynamics Corp (GD) is now in the Fair zone, suggesting that its current forward PE ratio of 20.95 is considered Fairly compared with the five-year average of 17.59. The fair price of General Dynamics Corp (GD) is between 320.96 to 367.54 according to relative valuation methord.

Relative Value

Fair Zone

320.96-367.54

Current Price：344.06

Fair

20.97

Trailing

Forward

15.54

EV/EBITDA

General Dynamics Corp. (GD) has a current EV/EBITDA of 15.54. The 5-year average EV/EBITDA is 13.45. The thresholds are as follows: Strongly Undervalued below 11.40, Undervalued between 11.40 and 12.42, Fairly Valued between 14.48 and 12.42, Overvalued between 14.48 and 15.51, and Strongly Overvalued above 15.51. The current Forward EV/EBITDA of 15.54 falls within the Strongly Overvalued range.

17.94

EV/EBIT

General Dynamics Corp. (GD) has a current EV/EBIT of 17.94. The 5-year average EV/EBIT is 15.98. The thresholds are as follows: Strongly Undervalued below 13.58, Undervalued between 13.58 and 14.78, Fairly Valued between 17.18 and 14.78, Overvalued between 17.18 and 18.38, and Strongly Overvalued above 18.38. The current Forward EV/EBIT of 17.94 falls within the Overvalued range.

344.06

General Dynamics Corp. (GD) has a current PS of 344.06. The 5-year average PS is 4.84. The thresholds are as follows: Strongly Undervalued below -62.76, Undervalued between -62.76 and -28.96, Fairly Valued between 38.63 and -28.96, Overvalued between 38.63 and 72.43, and Strongly Overvalued above 72.43. The current Forward PS of 344.06 falls within the Strongly Overvalued range.

21.09

P/OCF

General Dynamics Corp. (GD) has a current P/OCF of 21.09. The 5-year average P/OCF is 14.47. The thresholds are as follows: Strongly Undervalued below 10.60, Undervalued between 10.60 and 12.54, Fairly Valued between 16.41 and 12.54, Overvalued between 16.41 and 18.34, and Strongly Overvalued above 18.34. The current Forward P/OCF of 21.09 falls within the Strongly Overvalued range.

32.53

P/FCF

General Dynamics Corp. (GD) has a current P/FCF of 32.53. The 5-year average P/FCF is 18.83. The thresholds are as follows: Strongly Undervalued below 10.22, Undervalued between 10.22 and 14.53, Fairly Valued between 23.14 and 14.53, Overvalued between 23.14 and 27.45, and Strongly Overvalued above 27.45. The current Forward P/FCF of 32.53 falls within the Strongly Overvalued range.

General Dynamics Corp (GD) has a current Price-to-Book (P/B) ratio of 3.79. Compared to its 3-year average P/B ratio of 3.43 , the current P/B ratio is approximately 10.49% higher. Relative to its 5-year average P/B ratio of 3.44, the current P/B ratio is about 10.42% higher. General Dynamics Corp (GD) has a Forward Free Cash Flow (FCF) yield of approximately 0.05%. Compared to its 3-year average FCF yield of 4.40%, the current FCF yield is approximately -98.82% lower. Relative to its 5-year average FCF yield of 5.43% , the current FCF yield is about -99.05% lower.

3.80

P/B

Median3y

3.43

Median5y

3.44

0.05

FCF Yield

Median3y

4.40

Median5y

5.43

Competitors Valuation Multiple

The average P/S ratio for GD's competitors is 559.31, providing a benchmark for relative valuation. General Dynamics Corp Corp (GD) exhibits a P/S ratio of 344.06, which is -38.48% above the industry average. Given its robust revenue growth of 10.59%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

GD.N

General Dynamics Corp

Northrop Grumman Corp

Performance Decomposition

Market capitalization of GD increased by 21.14% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 11.67B to 12.91B.

The secondary factor is the P/E Change, contributed 7.66%to the performance.

Overall, the performance of GD in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.59%

11.67B → 12.91B

Revenue Growth

2.89%

7.97 → 8.20

Margin Expansion

7.66%

20.70 → 22.29

P/E Change

21.14%