GD Valuation

General Dynamics Corp

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314.700

+1.6(0.511%)1D

Overview
Forecast
Valuation
Earnings

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 19.80 is considered Fairly compared with the five-year average of 17.10. The fair price of General Dynamics Corp (GD) is between 306.63 to 357.19 according to relative valuation methord.

Relative Value

Fair Zone

306.63-357.19

Current Price：314.70

Fair

19.80

Trailing

Forward

14.67

EV/EBITDA

General Dynamics Corp. (GD) has a current EV/EBITDA of 14.67. The 5-year average EV/EBITDA is 13.20. The thresholds are as follows: Strongly Undervalued below 10.83, Undervalued between 10.83 and 12.01, Fairly Valued between 14.38 and 12.01, Overvalued between 14.38 and 15.57, and Strongly Overvalued above 15.57. The current Forward EV/EBITDA of 14.67 falls within the Overvalued range.

17.11

EV/EBIT

General Dynamics Corp. (GD) has a current EV/EBIT of 17.11. The 5-year average EV/EBIT is 15.69. The thresholds are as follows: Strongly Undervalued below 12.86, Undervalued between 12.86 and 14.28, Fairly Valued between 17.10 and 14.28, Overvalued between 17.10 and 18.51, and Strongly Overvalued above 18.51. The current Forward EV/EBIT of 17.11 falls within the Overvalued range.

1.62

General Dynamics Corp. (GD) has a current PS of 1.62. The 5-year average PS is 1.45. The thresholds are as follows: Strongly Undervalued below 1.11, Undervalued between 1.11 and 1.28, Fairly Valued between 1.62 and 1.28, Overvalued between 1.62 and 1.80, and Strongly Overvalued above 1.80. The current Forward PS of 1.62 falls within the Historic Trend Line -Fairly Valued range.

18.13

P/OCF

General Dynamics Corp. (GD) has a current P/OCF of 18.13. The 5-year average P/OCF is 14.05. The thresholds are as follows: Strongly Undervalued below 10.33, Undervalued between 10.33 and 12.19, Fairly Valued between 15.91 and 12.19, Overvalued between 15.91 and 17.77, and Strongly Overvalued above 17.77. The current Forward P/OCF of 18.13 falls within the Strongly Overvalued range.

34.07

P/FCF

General Dynamics Corp. (GD) has a current P/FCF of 34.07. The 5-year average P/FCF is 17.67. The thresholds are as follows: Strongly Undervalued below 11.47, Undervalued between 11.47 and 14.57, Fairly Valued between 20.78 and 14.57, Overvalued between 20.78 and 23.88, and Strongly Overvalued above 23.88. The current Forward P/FCF of 34.07 falls within the Strongly Overvalued range.

General Dynamics Corp (GD) has a current Price-to-Book (P/B) ratio of 3.57. Compared to its 3-year average P/B ratio of 3.42 , the current P/B ratio is approximately 4.32% higher. Relative to its 5-year average P/B ratio of 3.38, the current P/B ratio is about 5.44% higher. General Dynamics Corp (GD) has a Forward Free Cash Flow (FCF) yield of approximately 4.90%. Compared to its 3-year average FCF yield of 4.65%, the current FCF yield is approximately 5.49% lower. Relative to its 5-year average FCF yield of 5.51% , the current FCF yield is about -11.01% lower.

3.57

P/B

Median3y

3.42

Median5y

3.38

4.90

FCF Yield

Median3y

4.65

Median5y

5.51

Competitors Valuation Multiple

The average P/S ratio for GD's competitors is 1.85, providing a benchmark for relative valuation. General Dynamics Corp Corp (GD) exhibits a P/S ratio of 1.62, which is -12.77% above the industry average. Given its robust revenue growth of 8.89%, 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 5.35% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 11.98B to 13.04B.

The secondary factor is the Margin Expansion, contributed 2.91%to the performance.

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

8.89%

11.98B → 13.04B

Revenue Growth

2.91%

7.56 → 7.78

Margin Expansion

-6.45%

22.48 → 21.03

P/E Change

5.35%