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) | $462.55 | |||||||||||
| No. shares of common stock outstanding | 234,295,953 | |||||||||||
| Growth rate (g) | 43.44% | |||||||||||
| Earnings per share (EPS) | $22.77 | |||||||||||
| Next year expected EPS | $32.67 | |||||||||||
| Operating profit per share | $29.93 | |||||||||||
| Sales per share | $303.22 | |||||||||||
| Book value per share (BVPS) | $27.03 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 20.31 | — | 17.39 | 36.94 | 39.81 | 26.95 | 40.44 | 48.00 | 31.14 | |||
| Price to next year expected earnings | 14.16 | — | 13.91 | 34.64 | 39.23 | 23.43 | 39.87 | 48.24 | 29.22 | |||
| Price-earnings-growth (PEG) | 0.47 | — | 0.69 | 5.56 | 26.74 | 1.79 | 27.93 | — | 4.73 | |||
| Price to operating profit (P/OP) | 15.45 | — | 14.36 | 30.26 | 31.91 | 20.67 | 29.53 | 33.29 | 25.24 | |||
| Price to sales (P/S) | 1.53 | 2.40 | 3.06 | 5.63 | 7.43 | 3.99 | 2.39 | 3.18 | 2.51 | |||
| Price to book value (P/BV) | 17.11 | — | 9.63 | 7.58 | 13.49 | 8.26 | 3.21 | 8.69 | 7.31 | |||
Based on: 10-K (reporting date: 2024-12-31).
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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited an overall increasing trend from 13.44 in 2020 to 20.18 in 2024, despite some fluctuations. There was a notable peak in 2022 at 20.48, followed by a reduction to 15.35 in 2023, and a subsequent rise in 2024. This suggests cyclical market perceptions of earnings value, with a general increase in valuation multiples over the period.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio showed a similar pattern to the P/E ratio, increasing from 10.63 in 2020 to 15.35 in 2024. The ratio reached a peak in 2022 at 14.06, then dipped slightly in 2023 to 12.49 before rebounding in 2024. This indicates fluctuations in investor valuation relative to operating profit, trending towards higher premiums in the later years.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio increased from 1.40 in 2020 to 1.78 in 2022, reflecting heightened market expectations relative to sales. However, it declined thereafter to 1.57 in 2023 and further to 1.52 in 2024. The reduced valuation in relation to sales in the last two years points to either improved sales figures or more conservative investor sentiments towards revenue.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio experienced significant variability. It decreased sharply from 15.27 in 2020 to 9.62 in 2021, then climbed steadily to 17.00 in 2024. The initial decline may suggest a market reassessment of the company's net asset value or equity quality, whereas the subsequent increase indicates growing investor confidence or rising book values being more richly priced by the market.
Price to Earnings (P/E)
Lockheed Martin Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | 280,103,431 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | 5,336) | 6,920) | 5,732) | 6,315) | 6,833) | |
| Earnings per share (EPS)2 | 22.67 | 28.64 | 22.45 | 23.19 | 24.39 | |
| Share price1, 3 | 457.45 | 439.67 | 459.81 | 387.17 | 327.93 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 20.18 | 15.35 | 20.48 | 16.70 | 13.44 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 15.65 | 15.55 | 19.15 | 16.82 | 36.80 | |
| Eaton Corp. plc | 30.00 | 35.88 | 27.93 | 27.77 | 37.46 | |
| GE Aerospace | 33.42 | 16.18 | — | — | 19.67 | |
| Honeywell International Inc. | 23.10 | 22.73 | 26.97 | 23.14 | 29.63 | |
| RTX Corp. | 36.25 | 38.31 | 27.59 | 36.79 | — | |
| P/E Ratio, Sector | ||||||
| Capital Goods | 41.71 | 25.10 | 40.21 | 57.31 | 123.55 | |
| P/E Ratio, Industry | ||||||
| Industrials | 28.42 | 24.85 | 36.06 | 35.59 | — | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 5,336,000,000 ÷ 235,385,902 = 22.67
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 457.45 ÷ 22.67 = 20.18
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trend from 2020 to 2024. Starting at $327.93 in 2020, it increased significantly to $387.17 in 2021 and further to $459.81 in 2022. There was a slight decrease in 2023 to $439.67, followed by a moderate rebound to $457.45 in 2024.
- Earnings Per Share (EPS) Trend
- The EPS showed some fluctuations during the period. It started relatively high at $24.39 in 2020, then declined steadily to $23.19 in 2021 and $22.45 in 2022. There was a notable increase in 2023, reaching $28.64, before falling back to $22.67 in 2024, closer to the earlier lower levels.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio generally increased from 13.44 in 2020 to a peak of 20.48 in 2022, indicating that market valuations increased relative to earnings during this interval. In 2023, the ratio declined to 15.35, suggesting a market correction or improved earnings. In 2024, it rose again to 20.18, indicating elevated valuation relative to earnings despite a drop in EPS.
- Overall Observations
- The data reflect a rising share price trend with a peak in 2022 followed by some volatility. EPS experienced a declining phase until 2022, a short-term spike in 2023, and then a fall in 2024. The P/E ratio mirrors these changes, with increased valuation through 2022, a dip in 2023, and a rebound in 2024. This suggests market expectations and stock valuation have been responsive to fluctuating earnings performance and external factors influencing investor sentiment over these years.
Price to Operating Profit (P/OP)
Lockheed Martin Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | 280,103,431 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 7,013) | 8,507) | 8,348) | 9,123) | 8,644) | |
| Operating profit per share2 | 29.79 | 35.20 | 32.70 | 33.50 | 30.86 | |
| Share price1, 3 | 457.45 | 439.67 | 459.81 | 387.17 | 327.93 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 15.35 | 12.49 | 14.06 | 11.56 | 10.63 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 12.92 | 12.40 | 16.25 | 15.87 | 24.23 | |
| Eaton Corp. plc | 24.57 | 29.72 | 22.78 | 19.33 | 25.83 | |
| GE Aerospace | 26.78 | 27.11 | 19.88 | 17.46 | 25.64 | |
| Honeywell International Inc. | 17.71 | 18.15 | 20.84 | 20.68 | 24.86 | |
| RTX Corp. | 26.47 | 34.37 | 26.48 | 28.68 | — | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | 28.93 | 22.37 | 25.20 | 22.96 | 70.31 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.03 | 20.78 | 19.86 | 22.38 | 68.31 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 7,013,000,000 ÷ 235,385,902 = 29.79
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 457.45 ÷ 29.79 = 15.35
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory from December 31, 2020, to December 31, 2024. Starting at $327.93, it increased steadily each year, reaching a peak of $459.81 in 2022. Although there was a slight decrease to $439.67 in 2023, the price rebounded to $457.45 by the end of 2024, signaling overall positive investor sentiment and market valuation growth during the period.
- Operating Profit Per Share (OPPS) Trend
- The operating profit per share showed some fluctuation across the years. It increased from $30.86 in 2020 to $33.50 in 2021 but then experienced a minor decline to $32.70 in 2022. The OPPS rose again to $35.20 in 2023 before declining sharply to $29.79 in 2024. This variability suggests some operational challenges or cost pressures impacting profitability in the later period.
- Price-to-Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio, reflecting the market price relative to operating profit per share, demonstrated an increasing trend. It started at 10.63 in 2020 and rose moderately to 11.56 in 2021, then climbed significantly to 14.06 in 2022. After a moderate decrease to 12.49 in 2023, the ratio surged to 15.35 in 2024, the highest level in the observed timeframe. This indicates that market valuations have become more expensive relative to operating profits, especially notable in the latest year amid declining operating profit per share.
- Summary Insights
- Overall, the market valuation as indicated by share price and P/OP ratio increased steadily, notwithstanding the fluctuations and eventual decline in operating profit per share in 2024. The divergence between the rising P/OP ratio and falling operating profit per share toward the end of the period may suggest heightened investor expectations or speculative factors not fully supported by operational earnings growth.
Price to Sales (P/S)
Lockheed Martin Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | 280,103,431 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 71,043) | 67,571) | 65,984) | 67,044) | 65,398) | |
| Sales per share2 | 301.82 | 279.63 | 258.46 | 246.19 | 233.48 | |
| Share price1, 3 | 457.45 | 439.67 | 459.81 | 387.17 | 327.93 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.52 | 1.57 | 1.78 | 1.57 | 1.40 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 1.98 | 1.66 | 1.90 | 1.87 | 1.96 | |
| Caterpillar Inc. | 2.75 | 2.52 | 2.27 | 2.26 | 2.83 | |
| Eaton Corp. plc | 4.58 | 4.98 | 3.31 | 3.03 | 2.96 | |
| GE Aerospace | 6.24 | 2.30 | 1.20 | 1.50 | 1.41 | |
| Honeywell International Inc. | 3.42 | 3.51 | 3.78 | 3.73 | 4.34 | |
| RTX Corp. | 2.14 | 1.78 | 2.14 | 2.21 | 1.95 | |
| P/S Ratio, Sector | ||||||
| Capital Goods | 2.77 | 2.26 | 2.09 | 2.09 | 2.11 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.29 | 2.06 | 1.80 | 2.07 | 2.14 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 71,043,000,000 ÷ 235,385,902 = 301.82
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 457.45 ÷ 301.82 = 1.52
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory from 2020 through 2022, rising from $327.93 to $459.81. This was followed by a slight decline in 2023 to $439.67, before increasing again moderately to $457.45 in 2024. Overall, the share price demonstrated significant growth over the five-year period, with a brief dip in the penultimate year.
- Sales Per Share Trend
- Sales per share increased steadily every year, moving from $233.48 in 2020 to $301.82 in 2024. This consistent growth indicates an improving revenue generation ability on a per-share basis, reflecting positively on operational performance and revenue expansion.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio began at 1.4 in 2020 and increased to reach a peak of 1.78 in 2022. Subsequently, it decreased to 1.57 in 2023 and further to 1.52 in 2024. This pattern suggests that while the share price and sales per share both increased over the period, the market valuation relative to sales became more conservative after 2022, indicating a potential revaluation by investors or market adjustment to sales growth.
- Overall Insights
- The data indicates robust growth in sales per share, signifying strengthening business fundamentals. The strong rise in share price up to 2022 aligns with increasing sales, although the slight dip in share price and P/S ratio adjustments in subsequent years could reflect market recalibrations in valuation. The decreasing P/S ratio after 2022, despite continued sales growth, might suggest that the share price growth did not fully keep pace with sales, implying a more cautious investor sentiment or normalization of valuation multiples.
Price to Book Value (P/BV)
Lockheed Martin Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 235,385,902 | 241,643,304 | 255,297,298 | 272,326,925 | 280,103,431 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 6,333) | 6,835) | 9,266) | 10,959) | 6,015) | |
| Book value per share (BVPS)2 | 26.90 | 28.29 | 36.29 | 40.24 | 21.47 | |
| Share price1, 3 | 457.45 | 439.67 | 459.81 | 387.17 | 327.93 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 17.00 | 15.54 | 12.67 | 9.62 | 15.27 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 8.66 | 8.25 | 8.09 | 6.62 | 7.20 | |
| Eaton Corp. plc | 6.16 | 6.07 | 4.04 | 3.63 | 3.54 | |
| GE Aerospace | 11.33 | 5.43 | 2.43 | 2.64 | 2.89 | |
| Honeywell International Inc. | 7.08 | 8.11 | 8.02 | 6.91 | 8.07 | |
| RTX Corp. | 2.88 | 2.05 | 1.97 | 1.95 | 1.53 | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | 7.55 | 6.94 | 5.31 | 4.77 | 5.05 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 6.68 | 6.85 | 5.50 | 5.44 | 5.89 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 6,333,000,000 ÷ 235,385,902 = 26.90
3 Closing price as at the filing date of Lockheed Martin Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 457.45 ÷ 26.90 = 17.00
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated an overall increasing trend across the observed period. It rose significantly from $327.93 at the end of 2020 to a peak of $459.81 in 2022. Following this peak, a slight decline occurred in 2023 to $439.67, with a modest recovery to $457.45 by the end of 2024.
- Book Value Per Share (BVPS)
- Book value per share exhibited considerable variability. It increased sharply from $21.47 in 2020 to $40.24 in 2021. However, from 2021 onward, BVPS experienced a consistent decline, dropping to $36.29 in 2022, further decreasing to $28.29 in 2023, and continuing to fall to $26.90 in 2024.
- Price-to-Book Value Ratio (P/BV)
- The price-to-book value ratio displayed fluctuating behavior, reflecting the inverse relationship between share price and book value changes. Initially, P/BV declined markedly from 15.27 in 2020 to 9.62 in 2021, likely due to the substantial increase in book value per share. Subsequently, P/BV reversed direction, rising steadily to 12.67 in 2022, then further increasing to 15.54 in 2023, and reaching its highest point of 17.00 in 2024.
- Insights
- The data suggest that while the market value of shares generally increased, the intrinsic book value per share weakened after 2021. The rising P/BV ratio after 2021 indicates growing investor expectations or market valuation premiums relative to the company’s book value. The decline in BVPS could indicate asset devaluation, share repurchases, or increased liabilities, warranting further investigation. The share price's resilience despite falling book values may reflect positive market sentiment or future growth prospects perceived by investors.