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
General Dynamics Corp., current price multiples
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Cummins Inc. | Eaton Corp. plc | General Electric Co. | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||
| Current share price (P) | $132.43 | |||||||||||||
| No. shares of common stock outstanding | 286,972,150 | |||||||||||||
| Growth rate (g) | 18.26% | |||||||||||||
| Earnings per share (EPS) | $12.14 | |||||||||||||
| Next year expected EPS | $14.36 | |||||||||||||
| Operating profit per share | $16.20 | |||||||||||||
| Sales per share | $137.12 | |||||||||||||
| Book value per share (BVPS) | $47.31 | |||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||
| Price to earnings (P/E) | 10.91 | — | 17.55 | 56.49 | 38.84 | 19.38 | 22.61 | 15.95 | 42.19 | 44.74 | 59.98 | |||
| Price to next year expected earnings | 9.22 | — | 14.33 | 48.44 | 36.45 | 19.06 | 19.49 | 10.11 | 41.34 | 42.68 | 59.43 | |||
| Price-earnings-growth (PEG) | 0.60 | — | 0.78 | 3.40 | 5.94 | 11.79 | 1.41 | 0.28 | 20.55 | 9.24 | 63.71 | |||
| Price to operating profit (P/OP) | 8.18 | — | 13.99 | 23.58 | 32.17 | 32.47 | 18.06 | 12.98 | 37.85 | 21.11 | 24.91 | |||
| Price to sales (P/S) | 0.97 | 1.33 | 2.84 | 1.22 | 5.39 | 2.76 | 3.49 | 1.63 | 1.96 | 2.31 | 2.43 | |||
| Price to book value (P/BV) | 2.80 | — | 9.31 | 4.69 | 6.57 | 6.50 | 8.07 | 16.15 | 2.25 | 8.26 | 8.52 | |||
Based on: 10-K (reporting date: 2019-12-31).
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)
General Dynamics Corp., historical price multiples
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).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | General Dynamics Corp. P/E ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | General Dynamics Corp. P/OP ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | General Dynamics Corp. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | General Dynamics Corp. P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Earnings (P/E)
General Dynamics Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 289,627,333 | 288,235,928 | 296,933,621 | 302,742,234 | 311,161,810 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | 3,484) | 3,345) | 2,912) | 2,955) | 2,965) | |
| Earnings per share (EPS)2 | 12.03 | 11.61 | 9.81 | 9.76 | 9.53 | |
| Share price1, 3 | 186.25 | 173.48 | 209.53 | 183.04 | 132.26 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 15.48 | 14.95 | 21.37 | 18.75 | 13.88 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 12.36 | — | — | — | — | |
| Cummins Inc. | 10.92 | — | — | — | — | |
| Eaton Corp. plc | 18.06 | — | — | — | — | |
| General Electric Co. | — | — | — | — | — | |
| Honeywell International Inc. | 20.97 | — | — | — | — | |
| Lockheed Martin Corp. | 19.87 | — | — | — | — | |
| RTX Corp. | 24.41 | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Capital Goods | 36.19 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Industrials | 45.57 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 3,484,000,000 ÷ 289,627,333 = 12.03
3 Closing price as at the filing date of General Dynamics Corp. Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 186.25 ÷ 12.03 = 15.48
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | General Dynamics Corp. P/E ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
Price to Operating Profit (P/OP)
General Dynamics Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 289,627,333 | 288,235,928 | 296,933,621 | 302,742,234 | 311,161,810 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | 4,648) | 4,457) | 4,177) | 4,309) | 4,178) | |
| Operating profit per share2 | 16.05 | 15.46 | 14.07 | 14.23 | 13.43 | |
| Share price1, 3 | 186.25 | 173.48 | 209.53 | 183.04 | 132.26 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 11.61 | 11.22 | 14.90 | 12.86 | 9.85 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 9.08 | — | — | — | — | |
| Cummins Inc. | 9.14 | — | — | — | — | |
| Eaton Corp. plc | 13.95 | — | — | — | — | |
| General Electric Co. | 9.22 | — | — | — | — | |
| Honeywell International Inc. | 18.81 | — | — | — | — | |
| Lockheed Martin Corp. | 14.49 | — | — | — | — | |
| RTX Corp. | 15.07 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | 17.07 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Industrials | 18.93 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 4,648,000,000 ÷ 289,627,333 = 16.05
3 Closing price as at the filing date of General Dynamics Corp. Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 186.25 ÷ 16.05 = 11.61
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | General Dynamics Corp. P/OP ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
Price to Sales (P/S)
General Dynamics Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 289,627,333 | 288,235,928 | 296,933,621 | 302,742,234 | 311,161,810 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Sales per share2 | 135.86 | 125.57 | 104.31 | 103.56 | 101.13 | |
| Share price1, 3 | 186.25 | 173.48 | 209.53 | 183.04 | 132.26 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.37 | 1.38 | 2.01 | 1.77 | 1.31 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 2.34 | — | — | — | — | |
| Caterpillar Inc. | 1.48 | — | — | — | — | |
| Cummins Inc. | 1.05 | — | — | — | — | |
| Eaton Corp. plc | 1.87 | — | — | — | — | |
| General Electric Co. | 1.18 | — | — | — | — | |
| Honeywell International Inc. | 3.51 | — | — | — | — | |
| Lockheed Martin Corp. | 2.07 | — | — | — | — | |
| RTX Corp. | 1.75 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Capital Goods | 1.87 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Industrials | 1.84 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 39,350,000,000 ÷ 289,627,333 = 135.86
3 Closing price as at the filing date of General Dynamics Corp. Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 186.25 ÷ 135.86 = 1.37
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | General Dynamics Corp. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Book Value (P/BV)
General Dynamics Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 289,627,333 | 288,235,928 | 296,933,621 | 302,742,234 | 311,161,810 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | 13,577) | 11,732) | 11,435) | 10,976) | 10,738) | |
| Book value per share (BVPS)2 | 46.88 | 40.70 | 38.51 | 36.26 | 34.51 | |
| Share price1, 3 | 186.25 | 173.48 | 209.53 | 183.04 | 132.26 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 3.97 | 4.26 | 5.44 | 5.05 | 3.83 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 5.16 | — | — | — | — | |
| Cummins Inc. | 3.29 | — | — | — | — | |
| Eaton Corp. plc | 2.48 | — | — | — | — | |
| General Electric Co. | 3.66 | — | — | — | — | |
| Honeywell International Inc. | 6.97 | — | — | — | — | |
| Lockheed Martin Corp. | 39.60 | — | — | — | — | |
| RTX Corp. | 3.24 | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | 6.68 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Industrials | 6.47 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 13,577,000,000 ÷ 289,627,333 = 46.88
3 Closing price as at the filing date of General Dynamics Corp. Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 186.25 ÷ 46.88 = 3.97
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | General Dynamics Corp. P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019. |