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General Dynamics Corp. (NYSE:GD)


Common Stock Valuation Ratios (Price Multiples)

Beginner level


Current Valuation Ratios

General Dynamics Corp., current price multiples

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General Dynamics Corp. Boeing Co. Lockheed Martin Corp. Northrop Grumman Corp. Raytheon Technologies Corp. Aerospace & Defense Industrials
Selected Financial Data
Current share price (P) $162.22
No. shares of common stock outstanding 286,864,540
Growth rate (g) 18.26%
 
Earnings per share (EPS) $12.15
Next year expected EPS $14.36
Operating profit per share $16.20
Sales per share $137.17
Book value per share (BVPS) $47.33
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 13.36 18.49 25.37 11.27 23.55 24.86
Price to next year expected earnings 11.29 9.49 20.54 10.20 19.42 22.85
Price-earnings-growth (PEG) 0.73 0.19 1.08 1.07 1.11 2.81
Price to operating profit (P/OP) 10.01 13.48 14.37 6.96 16.44 14.33
Price to sales (P/S) 1.18 1.51 1.93 1.69 0.81 1.39 1.94
Price to book value (P/BV) 3.43 36.84 6.47 1.49 6.77 6.93

Based on: 10-K (filing date: 2020-02-10).

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

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 15.48 14.95 21.37 18.75 13.88
Price to operating profit (P/OP) 11.61 11.22 14.90 12.86 9.85
Price to sales (P/S) 1.37 1.38 2.01 1.77 1.31
Price to book value (P/BV) 3.97 4.26 5.44 5.05 3.83

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

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.’s 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.’s 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.’s 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’s required rate of return and its actual rate of return. General Dynamics Corp.’s 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

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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. 21.87 24.68 20.50 14.89
Lockheed Martin Corp. 19.87 16.88 48.70 14.14 18.36
Northrop Grumman Corp. 28.70 14.48 29.23 18.21 17.15
Raytheon Technologies Corp. 24.41 19.74 21.97 17.55 9.31
P/E Ratio, Sector
Aerospace & Defense 33.01 18.82 26.47 17.62 13.56
P/E Ratio, Industry
Industrials 28.64 30.22 28.75 22.88 23.48

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

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.’s 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.’s 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

Microsoft Excel LibreOffice Calc
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. 19.08 19.69 17.20 10.36
Lockheed Martin Corp. 14.49 11.62 16.47 13.51 12.17
Northrop Grumman Corp. 16.26 12.37 17.85 12.55 11.10
Raytheon Technologies Corp. 15.07 12.16 11.53 10.86 9.71
P/OP Ratio, Sector
Aerospace & Defense 23.05 14.26 16.10 13.29 10.55
P/OP Ratio, Industry
Industrials 16.50 13.78 15.57 15.52 12.20

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

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.’s 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.’s 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

Microsoft Excel LibreOffice Calc
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 2.26 2.17 1.06 0.80
Lockheed Martin Corp. 2.07 1.58 1.91 1.59 1.43
Northrop Grumman Corp. 1.91 1.55 2.28 1.63 1.45
Raytheon Technologies Corp. 1.75 1.56 1.67 1.55 1.26
P/S Ratio, Sector
Aerospace & Defense 1.94 1.79 2.00 1.41 1.14
P/S Ratio, Industry
Industrials 2.24 1.98 2.19 2.05 1.74

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

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.’s 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.’s 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

Microsoft Excel LibreOffice Calc
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. 674.83 569.92 122.80 12.17
Lockheed Martin Corp. 39.60 61.11 49.61 21.37
Northrop Grumman Corp. 7.32 5.71 8.36 7.62 6.18
Raytheon Technologies Corp. 3.24 2.71 3.38 3.22 2.59
P/BV Ratio, Sector
Aerospace & Defense 9.49 8.57 10.91 7.79 5.45
P/BV Ratio, Industry
Industrials 7.98 7.36 6.64 5.98 4.46

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

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.’s 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’s required rate of return and its actual rate of return. General Dynamics Corp.’s P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019.