GD PE Ratio & Valuation,Is GD Overvalued

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 20.54 is considered Fairly compared with the five-year average of 17.71. The fair price of General Dynamics Corp (GD) is between 325.82 to 370.89 according to relative valuation methord.

Relative Value

Fair Zone

325.82-370.89

Current Price：337.49

Fair

20.54

15.14

EV/EBITDA

General Dynamics Corp. (GD) has a current EV/EBITDA of 15.14. The 5-year average EV/EBITDA is 13.56. The thresholds are as follows: Strongly Undervalued below 11.51, Undervalued between 11.51 and 12.54, Fairly Valued between 14.58 and 12.54, Overvalued between 14.58 and 15.61, and Strongly Overvalued above 15.61. The current Forward EV/EBITDA of 15.14 falls within the Overvalued range.

17.50

EV/EBIT

General Dynamics Corp. (GD) has a current EV/EBIT of 17.50. The 5-year average EV/EBIT is 16.09. The thresholds are as follows: Strongly Undervalued below 13.76, Undervalued between 13.76 and 14.92, Fairly Valued between 17.25 and 14.92, Overvalued between 17.25 and 18.41, and Strongly Overvalued above 18.41. The current Forward EV/EBIT of 17.50 falls within the Overvalued range.

1.71

General Dynamics Corp. (GD) has a current PS of 1.71. The 5-year average PS is 1.50. The thresholds are as follows: Strongly Undervalued below 1.21, Undervalued between 1.21 and 1.36, Fairly Valued between 1.64 and 1.36, Overvalued between 1.64 and 1.79, and Strongly Overvalued above 1.79. The current Forward PS of 1.71 falls within the Overvalued range.

20.47

P/OCF

General Dynamics Corp. (GD) has a current P/OCF of 20.47. The 5-year average P/OCF is 14.74. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 and 12.52, Fairly Valued between 16.95 and 12.52, Overvalued between 16.95 and 19.17, and Strongly Overvalued above 19.17. The current Forward P/OCF of 20.47 falls within the Strongly Overvalued range.

31.33

P/FCF

General Dynamics Corp. (GD) has a current P/FCF of 31.33. The 5-year average P/FCF is 19.38. The thresholds are as follows: Strongly Undervalued below 9.97, Undervalued between 9.97 and 14.67, Fairly Valued between 24.08 and 14.67, Overvalued between 24.08 and 28.78, and Strongly Overvalued above 28.78. The current Forward P/FCF of 31.33 falls within the Strongly Overvalued range.

General Dynamics Corp (GD) has a current Price-to-Book (P/B) ratio of 3.73. Compared to its 3-year average P/B ratio of 3.43 , the current P/B ratio is approximately 8.66% higher. Relative to its 5-year average P/B ratio of 3.45, the current P/B ratio is about 8.04% higher. General Dynamics Corp (GD) has a Forward Free Cash Flow (FCF) yield of approximately 5.27%. Compared to its 3-year average FCF yield of 4.37%, the current FCF yield is approximately 20.77% lower. Relative to its 5-year average FCF yield of 5.42% , the current FCF yield is about -2.75% lower.

3.73

P/B

Median3y

3.43

Median5y

3.45

5.27

FCF Yield

Median3y

4.37

Median5y

5.42

Competitors Valuation Multiple

The average P/S ratio for GD's competitors is 4.02, providing a benchmark for relative valuation. General Dynamics Corp Corp (GD) exhibits a P/S ratio of 1.71, which is -57.58% above the industry average. Given its robust revenue growth of 10.59%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GD increased by 28.08% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.08 to 21.86.

The secondary factor is the Revenue Growth, contributed 10.59%to the performance.

Overall, the performance of GD in the past 1 year is driven by P/E Change. Which is more unsustainable.

10.59%

11.67B → 12.91B

Revenue Growth

2.89%

7.97 → 8.20

Margin Expansion

14.60%

19.08 → 21.86

P/E Change

28.08%

263.49 → 337.49

Mkt Cap Growth

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Frequently Asked Questions

Is General Dynamics Corp (GD) currently overvalued or undervalued?

What is General Dynamics Corp (GD) fair value?

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. The fair price of General Dynamics Corp (GD) is between 325.82 to 370.89 according to relative valuation methord.

How does GD's valuation metrics compare to the industry average?

What is the current P/B ratio for General Dynamics Corp (GD) as of Dec 15 2025?

As of Dec 15 2025, General Dynamics Corp (GD) has a P/B ratio of 3.73. This indicates that the market values GD at 3.73 times its book value.

What is the current FCF Yield for General Dynamics Corp (GD) as of Dec 15 2025?

As of Dec 15 2025, General Dynamics Corp (GD) has a FCF Yield of 5.27%. This means that for every dollar of General Dynamics Corp’s market capitalization, the company generates 5.27 cents in free cash flow.

What is the current Forward P/E ratio for General Dynamics Corp (GD) as of Dec 15 2025?

As of Dec 15 2025, General Dynamics Corp (GD) has a Forward P/E ratio of 20.54. This means the market is willing to pay $20.54 for every dollar of General Dynamics Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for General Dynamics Corp (GD) as of Dec 15 2025?

As of Dec 15 2025, General Dynamics Corp (GD) has a Forward P/S ratio of 1.71. This means the market is valuing GD at $1.71 for every dollar of expected revenue over the next 12 months.

GD Valuation