Microsoft Excel LibreOffice Calc

General Dynamics Corp. (GD)


Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

General Dynamics Corp., current price multiples

Microsoft Excel LibreOffice Calc
General Dynamics Corp. Boeing Co. Lockheed Martin Corp. Northrop Grumman Corp. Raytheon Co. United Technologies Corp. Aerospace & Defense Industrials
Selected Financial Data
Current share price (P) $186.89
No. shares of common stock outstanding 288,871,990
Growth rate (g) 16.69%
 
Earnings per share (EPS) $11.58
Next year expected EPS $13.51
Operating profit per share $15.43
Sales per share $125.29
Book value per share (BVPS) $40.61
Ratios (Price Multiples)
Price to earnings (P/E) 16.14 19.51 20.46 17.03 17.32 21.80 19.22 29.42
Price to next year expected earnings 13.83 2.99 9.93 13.65 15.22 19.49 15.70 26.89
Price-earnings-growth (PEG) 0.97 0.04 0.19 0.69 1.25 1.84 0.86 3.12
Price to operating profit (P/OP) 12.11 17.03 14.07 14.55 11.10 13.43 14.31 14.43
Price to sales (P/S) 1.49 2.02 1.92 1.83 1.86 1.73 1.85 2.03
Price to book value (P/BV) 4.60 602.05 74.05 6.72 4.39 2.99 8.13 6.65

Based on: 10-K (filing date: 2019-02-13).

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if 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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 14.95 21.37 18.75 13.88 17.93
Price to operating profit (P/OP) 11.22 14.90 12.86 9.85 11.68
Price to sales (P/S) 1.38 2.01 1.77 1.31 1.47
Price to book value (P/BV) 4.26 5.44 5.05 3.83 3.84

Based on: 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), 10-K (filing date: 2015-02-09).

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Earnings (P/E)

General Dynamics Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 288,235,928 296,933,621 302,742,234 311,161,810 331,704,599
Selected Financial Data (USD $)
Net earnings (in millions) 3,345  2,912  2,955  2,965  2,533 
Earnings per share (EPS)3 11.61 9.81 9.76 9.53 7.64
Share price1, 2 173.48 209.53 183.04 132.26 136.94
Ratio
P/E ratio4 14.95 21.37 18.75 13.88 17.93
Benchmarks
P/E Ratio, Competitors
Boeing Co. 21.87 24.68 20.50 14.89 19.15
Lockheed Martin Corp. 16.88 48.70 14.14 18.36 16.86
Northrop Grumman Corp. 14.48 29.23 18.21 17.15 15.27
Raytheon Co. 17.56 30.30 20.13 18.25 14.67
United Technologies Corp. 19.74 21.97 17.55 9.31 17.52
P/E Ratio, Sector
Aerospace & Defense 18.70 26.83 17.86 13.97 17.36
P/E Ratio, Industry
Industrials 28.09 28.48 22.75 23.39 18.71

Based on: 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), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Dynamics Corp.’s Annual Report.

2018 Calculations

3 EPS = Net earnings ÷ No. shares of common stock outstanding
= 3,345,000,000 ÷ 288,235,928 = 11.61

4 P/E ratio = Share price ÷ EPS
= 173.48 ÷ 11.61 = 14.95

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Operating Profit (P/OP)

General Dynamics Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 288,235,928 296,933,621 302,742,234 311,161,810 331,704,599
Selected Financial Data (USD $)
Operating earnings (in millions) 4,457  4,177  4,309  4,178  3,889 
Operating profit per share3 15.46 14.07 14.23 13.43 11.72
Share price1, 2 173.48 209.53 183.04 132.26 136.94
Ratio
P/OP ratio4 11.22 14.90 12.86 9.85 11.68
Benchmarks
P/OP Ratio, Competitors
Boeing Co. 19.08 19.69 17.20 10.36 13.96
Lockheed Martin Corp. 11.62 16.47 13.51 12.17 10.89
Northrop Grumman Corp. 12.37 17.85 12.55 11.10 9.88
Raytheon Co. 11.25 18.48 13.74 12.56 10.36
United Technologies Corp. 12.16 11.53 10.86 9.71 11.15
P/OP Ratio, Sector
Aerospace & Defense 13.92 16.33 13.33 10.75 11.61
P/OP Ratio, Industry
Industrials 13.78 15.57 15.55 12.60 11.54

Based on: 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), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Dynamics Corp.’s Annual Report.

2018 Calculations

3 Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 4,457,000,000 ÷ 288,235,928 = 15.46

4 P/OP ratio = Share price ÷ Operating profit per share
= 173.48 ÷ 15.46 = 11.22

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Sales (P/S)

General Dynamics Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 288,235,928 296,933,621 302,742,234 311,161,810 331,704,599
Selected Financial Data (USD $)
Revenue (in millions) 36,193  30,973  31,353  31,469  30,852 
Sales per share3 125.57 104.31 103.56 101.13 93.01
Share price1, 2 173.48 209.53 183.04 132.26 136.94
Ratio
P/S ratio4 1.38 2.01 1.77 1.31 1.47
Benchmarks
P/S Ratio, Competitors
Boeing Co. 2.26 2.17 1.06 0.80 1.15
Lockheed Martin Corp. 1.58 1.91 1.59 1.43 1.34
Northrop Grumman Corp. 1.55 2.28 1.63 1.45 1.32
Raytheon Co. 1.89 2.42 1.85 1.63 1.44
United Technologies Corp. 1.56 1.67 1.55 1.26 1.67
P/S Ratio, Sector
Aerospace & Defense 1.80 2.03 1.45 1.18 1.38
P/S Ratio, Industry
Industrials 1.94 2.13 1.99 1.72 1.85

Based on: 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), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Dynamics Corp.’s Annual Report.

2018 Calculations

3 Sales per share = Revenue ÷ No. shares of common stock outstanding
= 36,193,000,000 ÷ 288,235,928 = 125.57

4 P/S ratio = Share price ÷ Sales per share
= 173.48 ÷ 125.57 = 1.38

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Book Value (P/BV)

General Dynamics Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 288,235,928 296,933,621 302,742,234 311,161,810 331,704,599
Selected Financial Data (USD $)
Shareholders’ equity (in millions) 11,732  11,435  10,976  10,738  11,829 
Book value per share (BVPS)3 40.70 38.51 36.26 34.51 35.66
Share price1, 2 173.48 209.53 183.04 132.26 136.94
Ratio
P/BV ratio4 4.26 5.44 5.05 3.83 3.84
Benchmarks
P/BV Ratio, Competitors
Boeing Co. 674.83 569.92 122.80 12.17 12.04
Lockheed Martin Corp. 61.11 49.61 21.37 17.92
Northrop Grumman Corp. 5.71 8.36 7.62 6.18 4.37
Raytheon Co. 4.45 6.16 4.42 3.74 3.46
United Technologies Corp. 2.71 3.38 3.22 2.59 3.49
P/BV Ratio, Sector
Aerospace & Defense 7.91 10.09 7.19 5.18 5.34
P/BV Ratio, Industry
Industrials 6.35 6.01 5.41 4.16 3.99

Based on: 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), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Dynamics Corp.’s Annual Report.

2018 Calculations

3 BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 11,732,000,000 ÷ 288,235,928 = 40.70

4 P/BV ratio = Share price ÷ BVPS
= 173.48 ÷ 40.70 = 4.26

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.