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 20.59 is considered Fairly compared with the five-year average of 17.68. The fair price of General Dynamics Corp (GD) is between 322.06 to 367.46 according to relative valuation methord.
Relative Value
Fair Zone
322.06-367.46
Current Price：338.08
Fair
20.81
PE
1Y
3Y
5Y
Trailing
Forward
15.20
EV/EBITDA
General Dynamics Corp. (GD) has a current EV/EBITDA of 15.20. The 5-year average EV/EBITDA is 13.54. The thresholds are as follows: Strongly Undervalued below 11.47, Undervalued between 11.47 and 12.51, Fairly Valued between 14.57 and 12.51, Overvalued between 14.57 and 15.61, and Strongly Overvalued above 15.61. The current Forward EV/EBITDA of 15.20 falls within the Overvalued range.
17.54
EV/EBIT
General Dynamics Corp. (GD) has a current EV/EBIT of 17.54. The 5-year average EV/EBIT is 16.06. The thresholds are as follows: Strongly Undervalued below 13.71, Undervalued between 13.71 and 14.88, Fairly Valued between 17.24 and 14.88, Overvalued between 17.24 and 18.42, and Strongly Overvalued above 18.42. The current Forward EV/EBIT of 17.54 falls within the Overvalued range.
1.71
PS
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 1.20, Undervalued between 1.20 and 1.35, Fairly Valued between 1.64 and 1.35, 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.
20.50
P/OCF
General Dynamics Corp. (GD) has a current P/OCF of 20.50. The 5-year average P/OCF is 14.69. The thresholds are as follows: Strongly Undervalued below 10.33, Undervalued between 10.33 and 12.51, Fairly Valued between 16.87 and 12.51, Overvalued between 16.87 and 19.06, and Strongly Overvalued above 19.06. The current Forward P/OCF of 20.50 falls within the Strongly Overvalued range.
31.38
P/FCF
General Dynamics Corp. (GD) has a current P/FCF of 31.38. The 5-year average P/FCF is 19.27. The thresholds are as follows: Strongly Undervalued below 9.98, Undervalued between 9.98 and 14.63, Fairly Valued between 23.92 and 14.63, Overvalued between 23.92 and 28.57, and Strongly Overvalued above 28.57. The current Forward P/FCF of 31.38 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 8.78% higher. Relative to its 5-year average P/B ratio of 3.44, the current P/B ratio is about 8.36% higher. General Dynamics Corp (GD) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.39%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.43% , the current FCF yield is about -100.00% lower.
3.77
P/B
Median3y
3.43
Median5y
3.44
5.27
FCF Yield
Median3y
4.39
Median5y
5.43
Competitors Valuation Multiple
The average P/S ratio for GD's competitors is 2.57, providing a benchmark for relative valuation. General Dynamics Corp Corp (GD) exhibits a P/S ratio of , which is -100.00% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GD increased by 29.68% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.05 to 22.14.
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.
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