Price to Earnings (P/E)
since 2005
Calculation
General Dynamics Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 15.48 | = | 186.25 | ÷ | 12.03 | 12.03 | = | 3,484 | ÷ | 289,627,333 | |
| Feb 13, 2019 | 14.95 | = | 173.48 | ÷ | 11.61 | 11.61 | = | 3,345 | ÷ | 288,235,928 | |
| Feb 12, 2018 | 21.37 | = | 209.53 | ÷ | 9.81 | 9.81 | = | 2,912 | ÷ | 296,933,621 | |
| Feb 6, 2017 | 18.75 | = | 183.04 | ÷ | 9.76 | 9.76 | = | 2,955 | ÷ | 302,742,234 | |
| Feb 8, 2016 | 13.88 | = | 132.26 | ÷ | 9.53 | 9.53 | = | 2,965 | ÷ | 311,161,810 | |
| Feb 9, 2015 | 17.93 | = | 136.94 | ÷ | 7.64 | 7.64 | = | 2,533 | ÷ | 331,704,599 | |
| Feb 7, 2014 | 15.13 | = | 104.19 | ÷ | 6.89 | 6.89 | = | 2,357 | ÷ | 342,250,398 | |
| Feb 8, 2013 | — | = | 66.82 | ÷ | -0.94 | -0.94 | = | -332 | ÷ | 353,442,904 | |
| Feb 17, 2012 | 10.01 | = | 70.88 | ÷ | 7.08 | 7.08 | = | 2,526 | ÷ | 356,821,649 | |
| Feb 18, 2011 | 11.09 | = | 78.11 | ÷ | 7.04 | 7.04 | = | 2,624 | ÷ | 372,704,788 | |
| Feb 19, 2010 | 11.70 | = | 72.61 | ÷ | 6.21 | 6.21 | = | 2,394 | ÷ | 385,725,209 | |
| Feb 20, 2009 | 7.98 | = | 50.82 | ÷ | 6.37 | 6.37 | = | 2,459 | ÷ | 386,068,301 | |
| Feb 22, 2008 | 16.24 | = | 83.65 | ÷ | 5.15 | 5.15 | = | 2,072 | ÷ | 402,225,356 | |
| Feb 23, 2007 | 17.28 | = | 79.05 | ÷ | 4.57 | 4.57 | = | 1,856 | ÷ | 405,728,088 | |
| Mar 3, 2006 | 17.51 | = | 63.91 | ÷ | 3.65 | 3.65 | = | 1,461 | ÷ | 400,288,502 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of General Dynamics Corp. Annual Report.
The financial trajectory between 2006 and 2020 is characterized by a general expansion in both share price and earnings per share, though the price-to-earnings (P/E) ratio experienced significant volatility reflecting varying market sentiment and specific accounting anomalies.
- Share Price Evolution
- A long-term upward trend is evident, with the share price increasing from 63.91 US$ in 2006 to 186.25 US$ by 2020. A notable contraction occurred in 2009, where the price fell to 50.82 US$, marking the lowest point in the analyzed period. Following this trough, a sustained recovery led to a peak of 209.53 US$ in 2018 before a slight correction in subsequent years.
- Earnings per Share (EPS) Growth
- Earnings demonstrated consistent growth over the majority of the period, rising from 3.65 US$ in 2006 to 12.03 US$ in 2020. A significant anomaly is observed in 2013, where EPS dropped to -0.94 US$, resulting in a temporary absence of a P/E ratio. Aside from this singular event, the earnings trajectory remained positive, nearly tripling over the fourteen-year span.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio fluctuated between a low of 7.98 in 2009 and a high of 21.37 in 2018. The sharp decline in 2009 suggests a period where share price depreciation outpaced the decline or stagnation in earnings. Between 2014 and 2018, the ratio trended upward, indicating increasing investor confidence and a higher premium placed on each dollar of earnings. By 2020, the ratio stabilized at 15.48, returning to a range consistent with the 2006-2008 period.
The correlation between share price and EPS suggests that while fundamental earnings growth drove the long-term valuation, the P/E ratio was subject to external market pressures and internal earnings volatility, particularly during the 2009 financial crisis and the 2013 earnings dip.
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Comparison to Competitors
General Dynamics Corp., P/E, long-term trends, comparison to competitors
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 15.48 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 13, 2019 | 14.95 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 12, 2018 | 21.37 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 6, 2017 | 18.75 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 8, 2016 | 13.88 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 9, 2015 | 17.93 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 7, 2014 | 15.13 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Feb 8, 2013 | — | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Feb 17, 2012 | 10.01 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 18, 2011 | 11.09 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 19, 2010 | 11.70 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Feb 20, 2009 | 7.98 | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 22, 2008 | 16.24 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Feb 23, 2007 | 17.28 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Mar 3, 2006 | 17.51 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
General Dynamics Corp., P/E, long-term trends, comparison to sector (capital goods)
| General Dynamics Corp. | Capital Goods | |
|---|---|---|
| Feb 10, 2020 | 15.48 | 39.03 |
| Feb 13, 2019 | 14.95 | 56.00 |
| Feb 12, 2018 | 21.37 | 55.16 |
| Feb 6, 2017 | 18.75 | 23.62 |
| Feb 8, 2016 | 13.88 | 33.10 |
| Feb 9, 2015 | 17.93 | 17.47 |
| Feb 7, 2014 | 15.13 | 18.85 |
| Feb 8, 2013 | — | 15.74 |
| Feb 17, 2012 | 10.01 | 15.20 |
| Feb 18, 2011 | 11.09 | 18.46 |
| Feb 19, 2010 | 11.70 | 17.22 |
| Feb 20, 2009 | 7.98 | 7.48 |
| Feb 22, 2008 | 16.24 | 15.28 |
| Feb 23, 2007 | 17.28 | 17.63 |
| Mar 3, 2006 | 17.51 | 20.11 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
General Dynamics Corp., P/E, long-term trends, comparison to industry (industrials)
| General Dynamics Corp. | Industrials | |
|---|---|---|
| Feb 10, 2020 | 15.48 | 43.95 |
| Feb 13, 2019 | 14.95 | 33.70 |
| Feb 12, 2018 | 21.37 | 29.83 |
| Feb 6, 2017 | 18.75 | 22.92 |
| Feb 8, 2016 | 13.88 | 22.89 |
| Feb 9, 2015 | 17.93 | 18.79 |
| Feb 7, 2014 | 15.13 | 19.13 |
| Feb 8, 2013 | — | 17.77 |
| Feb 17, 2012 | 10.01 | 15.75 |
| Feb 18, 2011 | 11.09 | 18.72 |
| Feb 19, 2010 | 11.70 | 19.17 |
| Feb 20, 2009 | 7.98 | 9.73 |
| Feb 22, 2008 | 16.24 | 16.93 |
| Feb 23, 2007 | 17.28 | 11.65 |
| Mar 3, 2006 | 17.51 | 50.62 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).