RTX Relative Valuation
RTX'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, RTX is overvalued; if below, it's undervalued.
Historical Valuation
RTX Corp (RTX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 26.69 is considered Undervalued compared with the five-year average of 19.73. The fair price of RTX Corp (RTX) is between 189.32 to 216.93 according to relative valuation methord. Compared to the current price of 171.31 USD , RTX Corp is Undervalued By 9.52%.
Relative Value
Fair Zone
189.32-216.93
Current Price：171.31
9.52%
Undervalued
26.77
PE
1Y
3Y
5Y
Trailing
Forward
17.22
EV/EBITDA
RTX Corp. (RTX) has a current EV/EBITDA of 17.22. The 5-year average EV/EBITDA is 14.00. The thresholds are as follows: Strongly Undervalued below 10.70, Undervalued between 10.70 and 12.35, Fairly Valued between 15.66 and 12.35, Overvalued between 15.66 and 17.31, and Strongly Overvalued above 17.31. The current Forward EV/EBITDA of 17.22 falls within the Overvalued range.
22.40
EV/EBIT
RTX Corp. (RTX) has a current EV/EBIT of 22.40. The 5-year average EV/EBIT is 19.25. The thresholds are as follows: Strongly Undervalued below 15.58, Undervalued between 15.58 and 17.42, Fairly Valued between 21.08 and 17.42, Overvalued between 21.08 and 22.91, and Strongly Overvalued above 22.91. The current Forward EV/EBIT of 22.40 falls within the Overvalued range.
2.50
PS
RTX Corp. (RTX) has a current PS of 2.50. The 5-year average PS is 1.91. The thresholds are as follows: Strongly Undervalued below 1.41, Undervalued between 1.41 and 1.66, Fairly Valued between 2.16 and 1.66, Overvalued between 2.16 and 2.41, and Strongly Overvalued above 2.41. The current Forward PS of 2.50 falls within the Strongly Overvalued range.
22.95
P/OCF
RTX Corp. (RTX) has a current P/OCF of 22.95. The 5-year average P/OCF is 16.56. The thresholds are as follows: Strongly Undervalued below 10.81, Undervalued between 10.81 and 13.68, Fairly Valued between 19.43 and 13.68, Overvalued between 19.43 and 22.31, and Strongly Overvalued above 22.31. The current Forward P/OCF of 22.95 falls within the Strongly Overvalued range.
27.63
P/FCF
RTX Corp. (RTX) has a current P/FCF of 27.63. The 5-year average P/FCF is 25.20. The thresholds are as follows: Strongly Undervalued below 17.55, Undervalued between 17.55 and 21.37, Fairly Valued between 29.03 and 21.37, Overvalued between 29.03 and 32.86, and Strongly Overvalued above 32.86. The current Forward P/FCF of 27.63 falls within the Historic Trend Line -Fairly Valued range.
RTX Corp (RTX) has a current Price-to-Book (P/B) ratio of 3.56. Compared to its 3-year average P/B ratio of 2.41 , the current P/B ratio is approximately 47.63% higher. Relative to its 5-year average P/B ratio of 2.17, the current P/B ratio is about 63.78% higher. RTX Corp (RTX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.60%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.20% , the current FCF yield is about -100.00% lower.
3.57
P/B
Median3y
2.41
Median5y
2.17
2.32
FCF Yield
Median3y
3.60
Median5y
3.20
Competitors Valuation Multiple
The average P/S ratio for RTX's competitors is , providing a benchmark for relative valuation. RTX Corp Corp (RTX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 11.89%, 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 RTX increased by 48.79% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.28 to 35.18.
The secondary factor is the Margin Expansion, contributed 16.75%to the performance.
Overall, the performance of RTX in the past 1 year is driven by P/E Change. Which is more unsustainable.
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