Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Lockheed Martin Corp., current price multiples
| Lockheed Martin Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | $623.58 | |||||||||||
| No. shares of common stock outstanding | 230,080,240 | |||||||||||
| Growth rate (g) | 36.82% | |||||||||||
| Earnings per share (EPS) | $21.81 | |||||||||||
| Next year expected EPS | $29.83 | |||||||||||
| Operating profit per share | $33.60 | |||||||||||
| Sales per share | $326.18 | |||||||||||
| Book value per share (BVPS) | $29.21 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 28.60 | 100.99 | 31.49 | 38.27 | 38.68 | 26.53 | 55.79 | 62.74 | 38.27 | |||
| Price to next year expected earnings | 20.90 | 19,708.39 | 25.19 | 35.89 | 38.02 | 23.06 | 55.00 | 60.60 | 35.33 | |||
| Price-earnings-growth (PEG) | 0.78 | — | 1.26 | 5.76 | 22.22 | 1.76 | 38.53 | 17.74 | 4.61 | |||
| Price to operating profit (P/OP) | 18.56 | 44.58 | 26.00 | 31.35 | 30.56 | 20.34 | 40.74 | 43.51 | 31.01 | |||
| Price to sales (P/S) | 1.91 | 2.13 | 5.54 | 5.84 | 7.95 | 3.93 | 3.30 | 4.16 | 3.08 | |||
| Price to book value (P/BV) | 21.35 | 35.00 | 17.44 | 7.85 | 18.03 | 8.13 | 4.43 | 11.36 | 8.99 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Lockheed Martin Corp., historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios exhibit varied trends over the five-year period. Generally, ratios increased from 2021 to 2025, suggesting a growing premium placed on the company’s value relative to its earnings, operating profit, sales, and book value. However, fluctuations were observed within this overall upward trend.
- Price to Earnings (P/E)
- The Price to Earnings ratio initially increased from 16.70 in 2021 to 20.48 in 2022, before decreasing to 15.35 in 2023. It then rose again to 20.18 in 2024 and experienced a substantial increase to 28.55 in 2025. This indicates increasing investor confidence in future earnings potential, particularly in the final year of the observed period, though with some intermediate volatility.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio demonstrated a consistent upward trend, increasing from 11.56 in 2021 to 18.53 in 2025. The increases were relatively steady, with a slight acceleration in the later years. This suggests investors were willing to pay more for each dollar of operating profit generated by the company over time.
- Price to Sales (P/S)
- The Price to Sales ratio showed less pronounced movement. It increased from 1.57 in 2021 to 1.78 in 2022, then returned to 1.57 in 2023, dipped slightly to 1.52 in 2024, and concluded with an increase to 1.91 in 2025. This suggests a relatively stable valuation relative to revenue, with a modest increase in the final year.
- Price to Book Value (P/BV)
- The Price to Book Value ratio exhibited the most consistent and substantial increase. It rose steadily from 9.62 in 2021 to 21.31 in 2025. This indicates a growing perception of the company’s assets being undervalued by book value, and a corresponding increase in investor willingness to pay a premium for those assets.
In summary, the observed ratios generally point to increasing valuation multiples over the period, with the Price to Book Value ratio demonstrating the most significant growth. The Price to Earnings ratio showed some fluctuation, but ultimately ended at a higher level than its starting point. These trends collectively suggest a strengthening market valuation of the company.
Price to Earnings (P/E)
Lockheed Martin Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 230,080,240 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | 5,017) | 5,336) | 6,920) | 5,732) | 6,315) | |
| Earnings per share (EPS)2 | 21.81 | 22.67 | 28.64 | 22.45 | 23.19 | |
| Share price1, 3 | 622.51 | 457.45 | 439.67 | 459.81 | 387.17 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 28.55 | 20.18 | 15.35 | 20.48 | 16.70 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | 97.12 | — | — | — | — | |
| Caterpillar Inc. | — | 15.65 | 15.55 | 19.15 | 16.82 | |
| Eaton Corp. plc | — | 30.00 | 35.88 | 27.93 | 27.77 | |
| GE Aerospace | 36.01 | 33.42 | 16.18 | — | — | |
| Honeywell International Inc. | — | 23.10 | 22.73 | 26.97 | 23.14 | |
| RTX Corp. | — | 36.25 | 38.31 | 27.59 | 36.79 | |
| P/E Ratio, Sector | ||||||
| Capital Goods | — | 41.71 | 25.10 | 40.21 | 57.31 | |
| P/E Ratio, Industry | ||||||
| Industrials | — | 28.42 | 24.85 | 36.06 | 35.59 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 5,017,000,000 ÷ 230,080,240 = 21.81
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 622.51 ÷ 21.81 = 28.55
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuations over the five-year period. Initial values indicated a moderate valuation, followed by increases and subsequent declines, culminating in a substantial rise in the final year.
- Overall Trend
- The P/E ratio demonstrated a non-linear trend. It increased from 16.70 in 2021 to 20.48 in 2022, decreased to 15.35 in 2023, rose again to 20.18 in 2024, and then experienced a significant increase to 28.55 in 2025. This suggests evolving investor sentiment and/or changes in earnings expectations.
- Relationship to Share Price
- The share price and P/E ratio generally moved in a correlated manner. The increase in share price from 2021 to 2022 was accompanied by a rise in the P/E ratio. The decrease in share price in 2023 corresponded with a decrease in the P/E ratio. However, the substantial increase in share price in 2025 was the primary driver of the significant increase in the P/E ratio, indicating a potentially more optimistic outlook or increased demand for the stock.
- Relationship to Earnings Per Share (EPS)
- The P/E ratio’s fluctuations were also influenced by changes in earnings per share. While EPS decreased from 2021 to 2022, the P/E ratio increased, suggesting investors were willing to pay a higher premium for each dollar of earnings. The increase in EPS in 2023 led to a decrease in the P/E ratio, indicating a more reasonable valuation relative to earnings. The decrease in EPS from 2023 to 2025, coupled with a substantial increase in share price, resulted in the significant rise in the P/E ratio, suggesting investors anticipated future earnings growth or were willing to pay a higher premium for the stock despite current earnings.
The most notable observation is the substantial increase in the P/E ratio in 2025. This warrants further investigation to determine the underlying factors driving this change, such as market conditions, company-specific developments, or shifts in investor expectations.
Price to Operating Profit (P/OP)
Lockheed Martin Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 230,080,240 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 7,731) | 7,013) | 8,507) | 8,348) | 9,123) | |
| Operating profit per share2 | 33.60 | 29.79 | 35.20 | 32.70 | 33.50 | |
| Share price1, 3 | 622.51 | 457.45 | 439.67 | 459.81 | 387.17 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 18.53 | 15.35 | 12.49 | 14.06 | 11.56 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | 42.88 | — | — | — | — | |
| Caterpillar Inc. | — | 12.92 | 12.40 | 16.25 | 15.87 | |
| Eaton Corp. plc | — | 24.57 | 29.72 | 22.78 | 19.33 | |
| GE Aerospace | 28.45 | 26.78 | 27.11 | 19.88 | 17.46 | |
| Honeywell International Inc. | — | 17.71 | 18.15 | 20.84 | 20.68 | |
| RTX Corp. | — | 26.47 | 34.37 | 26.48 | 28.68 | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | — | 28.93 | 22.37 | 25.20 | 22.96 | |
| P/OP Ratio, Industry | ||||||
| Industrials | — | 23.03 | 20.78 | 19.86 | 22.38 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 7,731,000,000 ÷ 230,080,240 = 33.60
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 622.51 ÷ 33.60 = 18.53
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio for the observed period demonstrates a generally increasing trend, punctuated by some fluctuation. The share price and operating profit per share both influence this ratio, and their individual movements contribute to the observed pattern.
- Overall Trend
- The P/OP ratio increased from 11.56 in 2021 to 18.53 in 2025. This indicates that the market valuation relative to operating profit has risen over the five-year period. The most significant increase occurred between 2024 and 2025.
- Year-over-Year Changes
- From 2021 to 2022, the P/OP ratio rose from 11.56 to 14.06, representing a substantial increase. A subsequent decrease was observed from 2022 to 2023, with the ratio falling to 12.49. The ratio then increased again in 2023 to 2024, reaching 15.35. The largest year-over-year change occurred between 2024 and 2025, with the P/OP ratio increasing to 18.53.
- Relationship to Component Metrics
- The increase in the P/OP ratio is not solely attributable to changes in the share price. While the share price generally increased over the period, operating profit per share experienced fluctuations. The decrease in operating profit per share from 2022 to 2023 contributed to the slight decrease in the P/OP ratio during that period. The substantial increase in the P/OP ratio from 2024 to 2025 was driven by a significant increase in the share price, coupled with a moderate increase in operating profit per share.
The observed trend suggests a growing investor willingness to pay a premium for each dollar of operating profit generated. The fluctuations indicate sensitivity to both market sentiment and underlying operational performance.
Price to Sales (P/S)
Lockheed Martin Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 230,080,240 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | |
| Selected Financial Data (US$) | ||||||
| Sales (in millions) | 75,048) | 71,043) | 67,571) | 65,984) | 67,044) | |
| Sales per share2 | 326.18 | 301.82 | 279.63 | 258.46 | 246.19 | |
| Share price1, 3 | 622.51 | 457.45 | 439.67 | 459.81 | 387.17 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.91 | 1.52 | 1.57 | 1.78 | 1.57 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 2.05 | 1.98 | 1.66 | 1.90 | 1.87 | |
| Caterpillar Inc. | — | 2.75 | 2.52 | 2.27 | 2.26 | |
| Eaton Corp. plc | — | 4.58 | 4.98 | 3.31 | 3.03 | |
| GE Aerospace | 7.41 | 6.24 | 2.30 | 1.20 | 1.50 | |
| Honeywell International Inc. | — | 3.42 | 3.51 | 3.78 | 3.73 | |
| RTX Corp. | — | 2.14 | 1.78 | 2.14 | 2.21 | |
| P/S Ratio, Sector | ||||||
| Capital Goods | — | 2.77 | 2.26 | 2.09 | 2.09 | |
| P/S Ratio, Industry | ||||||
| Industrials | — | 2.29 | 2.06 | 1.80 | 2.07 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 75,048,000,000 ÷ 230,080,240 = 326.18
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 622.51 ÷ 326.18 = 1.91
5 Click competitor name to see calculations.
The price to sales ratio exhibited fluctuations over the five-year period. Initial increases were followed by a period of relative stability, culminating in a notable rise in the most recent year.
- Price to Sales (P/S) Ratio - Overall Trend
- The P/S ratio began at 1.57 in 2021, increased to 1.78 in 2022, then decreased to 1.57 in 2023 and further to 1.52 in 2024. A significant increase to 1.91 was observed in 2025. This indicates a growing premium placed on each dollar of sales by investors in the latest year.
- Price to Sales (P/S) Ratio - Initial Increase (2021-2022)
- From 2021 to 2022, the P/S ratio increased by approximately 13.3%. This suggests that investors were willing to pay more for each dollar of sales during this period, potentially reflecting increased optimism about future revenue growth or improved profitability expectations.
- Price to Sales (P/S) Ratio - Period of Stability (2022-2024)
- Between 2022 and 2024, the P/S ratio experienced a slight decline, moving from 1.78 to 1.52. This suggests a stabilization in investor sentiment regarding the company’s sales valuation, or potentially a reassessment of growth prospects. The ratio remained relatively consistent during this timeframe.
- Price to Sales (P/S) Ratio - Recent Increase (2024-2025)
- The P/S ratio increased substantially from 1.52 in 2024 to 1.91 in 2025, representing a 25.7% increase. This recent surge could be attributed to several factors, including positive market conditions, improved company performance, or heightened investor expectations for future sales growth. It is the most significant change observed within the analyzed period.
The observed fluctuations in the P/S ratio suggest a dynamic valuation influenced by evolving investor perceptions and potentially underlying changes in the company’s performance and outlook.
Price to Book Value (P/BV)
Lockheed Martin Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 230,080,240 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 6,721) | 6,333) | 6,835) | 9,266) | 10,959) | |
| Book value per share (BVPS)2 | 29.21 | 26.90 | 28.29 | 36.29 | 40.24 | |
| Share price1, 3 | 622.51 | 457.45 | 439.67 | 459.81 | 387.17 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 21.31 | 17.00 | 15.54 | 12.67 | 9.62 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | 33.65 | — | — | — | — | |
| Caterpillar Inc. | — | 8.66 | 8.25 | 8.09 | 6.62 | |
| Eaton Corp. plc | — | 6.16 | 6.07 | 4.04 | 3.63 | |
| GE Aerospace | 16.78 | 11.33 | 5.43 | 2.43 | 2.64 | |
| Honeywell International Inc. | — | 7.08 | 8.11 | 8.02 | 6.91 | |
| RTX Corp. | — | 2.88 | 2.05 | 1.97 | 1.95 | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | — | 7.55 | 6.94 | 5.31 | 4.77 | |
| P/BV Ratio, Industry | ||||||
| Industrials | — | 6.68 | 6.85 | 5.50 | 5.44 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 6,721,000,000 ÷ 230,080,240 = 29.21
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 622.51 ÷ 29.21 = 21.31
5 Click competitor name to see calculations.
The price to book value ratio exhibits a consistent upward trend over the five-year period. Initially, the ratio increased significantly from 2021 to 2023, followed by a more moderate increase through 2025. This suggests a growing premium that the market places on the net asset value of the company.
- Price to Book Value (P/BV) Trend
- The P/BV ratio increased from 9.62 in 2021 to 12.67 in 2022, representing a substantial rise of approximately 31.7%. This increase continued into 2023, reaching 15.54, a further increase of roughly 22.7%. The rate of increase slowed in 2024, with the ratio reaching 17.00, a 9.7% increase. The most recent year, 2025, shows the largest single-year increase, with the P/BV ratio climbing to 21.31, representing a 25.3% increase from the prior year.
Concurrently, the share price demonstrated an overall upward trajectory, although not consistently year-over-year. The share price increased from US$387.17 in 2021 to US$459.81 in 2022, then decreased to US$439.67 in 2023. It experienced a modest increase to US$457.45 in 2024 before a significant jump to US$622.51 in 2025.
- Book Value per Share (BVPS) Trend
- Book value per share experienced a decline from US$40.24 in 2021 to US$36.29 in 2022, a decrease of approximately 10.8%. This downward trend continued through 2023, reaching US$28.29, representing a further decrease of 22.0%. A slight recovery was observed in 2024, with BVPS at US$26.90, followed by an increase to US$29.21 in 2025. Despite the 2025 increase, the book value per share remains below the level recorded in 2021.
The increasing P/BV ratio, coupled with the fluctuating book value per share and overall increasing share price, suggests that market expectations regarding the company’s future earnings potential and asset utilization are becoming more optimistic. The market appears to be willing to pay an increasingly larger premium for each dollar of net asset value.