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NOC Valuation

Northrop Grumman Corp
$
569.740
+1.26(0.222%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

NOC Relative Valuation

NOC'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, NOC is overvalued; if below, it's undervalued.

Historical Valuation

Northrop Grumman Corp (NOC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.56 is considered Undervalued compared with the five-year average of 17.42. The fair price of Northrop Grumman Corp (NOC) is between 630.20 to 753.87 according to relative valuation methord. Compared to the current price of 569.74 USD , Northrop Grumman Corp is Undervalued By 9.59%.
Relative Value
Fair Zone
630.20-753.87
Current Price:569.74
9.59%
Undervalued
20.56
PE
1Y
3Y
5Y
Trailing
Forward
15.53
EV/EBITDA
Northrop Grumman Corp. (NOC) has a current EV/EBITDA of 15.53. The 5-year average EV/EBITDA is 14.47. The thresholds are as follows: Strongly Undervalued below 10.75, Undervalued between 10.75 and 12.61, Fairly Valued between 16.33 and 12.61, Overvalued between 16.33 and 18.20, and Strongly Overvalued above 18.20. The current Forward EV/EBITDA of 15.53 falls within the Historic Trend Line -Fairly Valued range.
20.41
EV/EBIT
Northrop Grumman Corp. (NOC) has a current EV/EBIT of 20.41. The 5-year average EV/EBIT is 19.10. The thresholds are as follows: Strongly Undervalued below 13.22, Undervalued between 13.22 and 16.16, Fairly Valued between 22.04 and 16.16, Overvalued between 22.04 and 24.98, and Strongly Overvalued above 24.98. The current Forward EV/EBIT of 20.41 falls within the Historic Trend Line -Fairly Valued range.
1.88
PS
Northrop Grumman Corp. (NOC) has a current PS of 1.88. The 5-year average PS is 1.70. The thresholds are as follows: Strongly Undervalued below 1.32, Undervalued between 1.32 and 1.51, Fairly Valued between 1.90 and 1.51, Overvalued between 1.90 and 2.09, and Strongly Overvalued above 2.09. The current Forward PS of 1.88 falls within the Historic Trend Line -Fairly Valued range.
12.45
P/OCF
Northrop Grumman Corp. (NOC) has a current P/OCF of 12.45. The 5-year average P/OCF is 14.99. The thresholds are as follows: Strongly Undervalued below 9.87, Undervalued between 9.87 and 12.43, Fairly Valued between 17.55 and 12.43, Overvalued between 17.55 and 20.11, and Strongly Overvalued above 20.11. The current Forward P/OCF of 12.45 falls within the Historic Trend Line -Fairly Valued range.
24.54
P/FCF
Northrop Grumman Corp. (NOC) has a current P/FCF of 24.54. The 5-year average P/FCF is 24.34. The thresholds are as follows: Strongly Undervalued below 11.38, Undervalued between 11.38 and 17.86, Fairly Valued between 30.81 and 17.86, Overvalued between 30.81 and 37.29, and Strongly Overvalued above 37.29. The current Forward P/FCF of 24.54 falls within the Historic Trend Line -Fairly Valued range.
Northrop Grumman Corp (NOC) has a current Price-to-Book (P/B) ratio of 5.28. Compared to its 3-year average P/B ratio of 4.82 , the current P/B ratio is approximately 9.57% higher. Relative to its 5-year average P/B ratio of 4.96, the current P/B ratio is about 6.30% higher. Northrop Grumman Corp (NOC) has a Forward Free Cash Flow (FCF) yield of approximately 1.60%. Compared to its 3-year average FCF yield of 2.63%, the current FCF yield is approximately -39.13% lower. Relative to its 5-year average FCF yield of 3.55% , the current FCF yield is about -54.86% lower.
5.28
P/B
Median3y
4.82
Median5y
4.96
1.60
FCF Yield
Median3y
2.63
Median5y
3.55

Competitors Valuation Multiple

The average P/S ratio for NOC's competitors is 4.40, providing a benchmark for relative valuation. Northrop Grumman Corp Corp (NOC) exhibits a P/S ratio of 1.88, which is -57.31% above the industry average. Given its robust revenue growth of 1.30%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of NOC increased by 17.64% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.20 to 11.34.
The secondary factor is the Revenue Growth, contributed 1.30%to the performance.
Overall, the performance of NOC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
1.30%
10.22B → 10.35B
Revenue Growth
+
23.26%
9.20 → 11.34
Margin Expansion
+
-6.92%
22.55 → 20.99
P/E Change
=
17.64%
484.32 → 569.74
Mkt Cap Growth

FAQ

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Is Northrop Grumman Corp (NOC) currently overvalued or undervalued?

Northrop Grumman Corp (NOC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.56 is considered Undervalued compared with the five-year average of 17.42. The fair price of Northrop Grumman Corp (NOC) is between 630.20 to 753.87 according to relative valuation methord. Compared to the current price of 569.74 USD , Northrop Grumman Corp is Undervalued By 9.59% .
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What is Northrop Grumman Corp (NOC) fair value?

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

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What is the current P/B ratio for Northrop Grumman Corp (NOC) as of Jul 28 2025?

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What is the current FCF Yield for Northrop Grumman Corp (NOC) as of Jul 28 2025?

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What is the current Forward P/E ratio for Northrop Grumman Corp (NOC) as of Jul 28 2025?

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What is the current Forward P/S ratio for Northrop Grumman Corp (NOC) as of Jul 28 2025?