Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Northrop Grumman Corp. (NYSE:NOC)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Northrop Grumman Corp., current price multiples

Microsoft Excel LibreOffice Calc
Northrop Grumman Corp. Boeing Co. General Dynamics Corp. Lockheed Martin Corp. Raytheon Technologies Corp. Aerospace & Defense Industrials
Selected Financial Data
Current share price (P) $309.84
No. shares of common stock outstanding 166,715,982
Growth rate (g) 23.51%
 
Earnings per share (EPS) $13.48
Next year expected EPS $16.65
Operating profit per share $23.81
Sales per share $202.99
Book value per share (BVPS) $52.90
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 22.98 11.41 16.55 16.78 22.43 27.19
Price to next year expected earnings 18.60 9.65 8.50 15.18 18.50 24.88
Price-earnings-growth (PEG) 0.98 0.62 0.17 1.59 1.06 2.93
Price to operating profit (P/OP) 13.01 8.55 12.07 10.36 15.66 15.13
Price to sales (P/S) 1.53 1.19 1.01 1.72 1.21 1.32 2.00
Price to book value (P/BV) 5.86 2.93 32.98 2.22 6.44 6.84

Based on: 10-K (filing date: 2020-01-30).

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)

Northrop Grumman Corp., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 28.70 14.48 29.23 18.21 17.15
Price to operating profit (P/OP) 16.26 12.37 17.85 12.55 11.10
Price to sales (P/S) 1.91 1.55 2.28 1.63 1.45
Price to book value (P/BV) 7.32 5.71 8.36 7.62 6.18

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

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. Northrop Grumman Corp.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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. Northrop Grumman Corp.’s P/OP ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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. Northrop Grumman Corp.’s P/S ratio decreased from 2017 to 2018 but then slightly increased 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. Northrop Grumman Corp.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Earnings (P/E)

Northrop Grumman Corp., historical P/E 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 167,637,130 169,737,507 174,087,585 174,599,406 180,943,220
Selected Financial Data (US$)
Net earnings (in millions) 2,248  3,229  2,015  2,200  1,990 
Earnings per share (EPS)2 13.41 19.02 11.57 12.60 11.00
Share price1, 3 384.87 275.55 338.34 229.48 188.64
Valuation Ratio
P/E ratio4 28.70 14.48 29.23 18.21 17.15
Benchmarks
P/E Ratio, Competitors5
Boeing Co. 21.87 24.68 20.50 14.89
General Dynamics Corp. 15.48 14.95 21.37 18.75 13.88
Lockheed Martin Corp. 19.87 16.88 48.70 14.14 18.36
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 29.20 28.34 26.14 22.94 24.42

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 2,248,000,000 ÷ 167,637,130 = 13.41

3 Closing price as at the filing date of Northrop Grumman Corp.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 384.87 ÷ 13.41 = 28.70

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. Northrop Grumman Corp.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Operating Profit (P/OP)

Northrop Grumman 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 167,637,130 169,737,507 174,087,585 174,599,406 180,943,220
Selected Financial Data (US$)
Operating income (in millions) 3,969  3,780  3,299  3,193  3,076 
Operating profit per share2 23.68 22.27 18.95 18.29 17.00
Share price1, 3 384.87 275.55 338.34 229.48 188.64
Valuation Ratio
P/OP ratio4 16.26 12.37 17.85 12.55 11.10
Benchmarks
P/OP Ratio, Competitors5
Boeing Co. 19.08 19.69 17.20 10.36
General Dynamics Corp. 11.61 11.22 14.90 12.86 9.85
Lockheed Martin Corp. 14.49 11.62 16.47 13.51 12.17
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 16.25 13.65 15.18 15.32 12.52

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 3,969,000,000 ÷ 167,637,130 = 23.68

3 Closing price as at the filing date of Northrop Grumman Corp.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 384.87 ÷ 23.68 = 16.26

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. Northrop Grumman Corp.’s P/OP ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Sales (P/S)

Northrop Grumman 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 167,637,130 169,737,507 174,087,585 174,599,406 180,943,220
Selected Financial Data (US$)
Sales (in millions) 33,841  30,095  25,803  24,508  23,526 
Sales per share2 201.87 177.30 148.22 140.37 130.02
Share price1, 3 384.87 275.55 338.34 229.48 188.64
Valuation Ratio
P/S ratio4 1.91 1.55 2.28 1.63 1.45
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 2.34 2.26 2.17 1.06 0.80
General Dynamics Corp. 1.37 1.38 2.01 1.77 1.31
Lockheed Martin Corp. 2.07 1.58 1.91 1.59 1.43
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 2.15 1.93 2.11 1.98 1.71

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 33,841,000,000 ÷ 167,637,130 = 201.87

3 Closing price as at the filing date of Northrop Grumman Corp.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 384.87 ÷ 201.87 = 1.91

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. Northrop Grumman Corp.’s P/S ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Book Value (P/BV)

Northrop Grumman 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 167,637,130 169,737,507 174,087,585 174,599,406 180,943,220
Selected Financial Data (US$)
Shareholders’ equity (in millions) 8,819  8,187  7,048  5,259  5,522 
Book value per share (BVPS)2 52.61 48.23 40.49 30.12 30.52
Share price1, 3 384.87 275.55 338.34 229.48 188.64
Valuation Ratio
P/BV ratio4 7.32 5.71 8.36 7.62 6.18
Benchmarks
P/BV Ratio, Competitors5
Boeing Co. 674.83 569.92 122.80 12.17
General Dynamics Corp. 3.97 4.26 5.44 5.05 3.83
Lockheed Martin Corp. 39.60 61.11 49.61 21.37
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 7.35 6.80 6.24 5.70 4.29

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 8,819,000,000 ÷ 167,637,130 = 52.61

3 Closing price as at the filing date of Northrop Grumman Corp.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 384.87 ÷ 52.61 = 7.32

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. Northrop Grumman Corp.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.