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 29.04 is considered Undervalued compared with the five-year average of 19.82. The fair price of RTX Corp (RTX) is between 191.31 to 220.33 according to relative valuation methord. Compared to the current price of 185.73 USD , RTX Corp is Undervalued By 2.92%.
Relative Value
Fair Zone
191.31-220.33
Current Price：185.73
2.92%
Undervalued
29.04
PE
1Y
3Y
5Y
18.46
EV/EBITDA
RTX Corp. (RTX) has a current EV/EBITDA of 18.46. The 5-year average EV/EBITDA is 14.06. The thresholds are as follows: Strongly Undervalued below 10.64, Undervalued between 10.64 and 12.35, Fairly Valued between 15.77 and 12.35, Overvalued between 15.77 and 17.48, and Strongly Overvalued above 17.48. The current Forward EV/EBITDA of 18.46 falls within the Strongly Overvalued range.
24.34
EV/EBIT
RTX Corp. (RTX) has a current EV/EBIT of 24.34. The 5-year average EV/EBIT is 19.29. The thresholds are as follows: Strongly Undervalued below 15.51, Undervalued between 15.51 and 17.40, Fairly Valued between 21.17 and 17.40, Overvalued between 21.17 and 23.06, and Strongly Overvalued above 23.06. The current Forward EV/EBIT of 24.34 falls within the Strongly Overvalued range.
2.77
PS
RTX Corp. (RTX) has a current PS of 2.77. The 5-year average PS is 1.93. The thresholds are as follows: Strongly Undervalued below 1.40, Undervalued between 1.40 and 1.66, Fairly Valued between 2.19 and 1.66, Overvalued between 2.19 and 2.46, and Strongly Overvalued above 2.46. The current Forward PS of 2.77 falls within the Strongly Overvalued range.
25.67
P/OCF
RTX Corp. (RTX) has a current P/OCF of 25.67. The 5-year average P/OCF is 16.68. The thresholds are as follows: Strongly Undervalued below 10.57, Undervalued between 10.57 and 13.63, Fairly Valued between 19.74 and 13.63, Overvalued between 19.74 and 22.80, and Strongly Overvalued above 22.80. The current Forward P/OCF of 25.67 falls within the Strongly Overvalued range.
30.65
P/FCF
RTX Corp. (RTX) has a current P/FCF of 30.65. The 5-year average P/FCF is 25.24. The thresholds are as follows: Strongly Undervalued below 17.56, Undervalued between 17.56 and 21.40, Fairly Valued between 29.08 and 21.40, Overvalued between 29.08 and 32.91, and Strongly Overvalued above 32.91. The current Forward P/FCF of 30.65 falls within the Overvalued range.
RTX Corp (RTX) has a current Price-to-Book (P/B) ratio of 3.89. Compared to its 3-year average P/B ratio of 2.46 , the current P/B ratio is approximately 58.43% higher. Relative to its 5-year average P/B ratio of 2.21, the current P/B ratio is about 76.15% higher. RTX Corp (RTX) has a Forward Free Cash Flow (FCF) yield of approximately 2.09%. Compared to its 3-year average FCF yield of 3.59%, the current FCF yield is approximately -41.95% lower. Relative to its 5-year average FCF yield of 3.20% , the current FCF yield is about -34.74% lower.
3.89
P/B
Median3y
2.46
Median5y
2.21
2.09
FCF Yield
Median3y
3.59
Median5y
3.20
Competitors Valuation Multiple
The average P/S ratio for RTX's competitors is 3.07, providing a benchmark for relative valuation. RTX Corp Corp (RTX) exhibits a P/S ratio of 2.77, which is -9.56% above the industry average. Given its robust revenue growth of 11.89%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RTX increased by 44.76% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.64 to 8.92.
The secondary factor is the P/E Change, contributed 16.12%to the performance.
Overall, the performance of RTX in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is RTX Corp (RTX) currently overvalued or undervalued?
RTX Corp (RTX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 29.04 is considered Undervalued compared with the five-year average of 19.82. The fair price of RTX Corp (RTX) is between 191.31 to 220.33 according to relative valuation methord. Compared to the current price of 185.73 USD , RTX Corp is Undervalued By 2.92% .
What is RTX Corp (RTX) fair value?
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. The fair price of RTX Corp (RTX) is between 191.31 to 220.33 according to relative valuation methord.
How does RTX's valuation metrics compare to the industry average?
The average P/S ratio for RTX's competitors is 3.07, providing a benchmark for relative valuation. RTX Corp Corp (RTX) exhibits a P/S ratio of 2.77, which is -9.56% above the industry average. Given its robust revenue growth of 11.89%, this premium appears unsustainable.
What is the current P/B ratio for RTX Corp (RTX) as of Jan 08 2026?
As of Jan 08 2026, RTX Corp (RTX) has a P/B ratio of 3.89. This indicates that the market values RTX at 3.89 times its book value.
What is the current FCF Yield for RTX Corp (RTX) as of Jan 08 2026?
As of Jan 08 2026, RTX Corp (RTX) has a FCF Yield of 2.09%. This means that for every dollar of RTX Corp’s market capitalization, the company generates 2.09 cents in free cash flow.
What is the current Forward P/E ratio for RTX Corp (RTX) as of Jan 08 2026?
As of Jan 08 2026, RTX Corp (RTX) has a Forward P/E ratio of 29.04. This means the market is willing to pay $29.04 for every dollar of RTX Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for RTX Corp (RTX) as of Jan 08 2026?
As of Jan 08 2026, RTX Corp (RTX) has a Forward P/S ratio of 2.77. This means the market is valuing RTX at $2.77 for every dollar of expected revenue over the next 12 months.