Stock Analysis on Net

RTX Corp. (NYSE:RTX)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

RTX Corp., current price multiples

Microsoft Excel
RTX Corp. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International Inc. Lockheed Martin Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $123.93
No. shares of common stock outstanding 1,330,239,366
Growth rate (g) 2.05%
 
Earnings per share (EPS) $2.40
Next year expected EPS $2.45
Operating profit per share $2.68
Sales per share $51.81
Book value per share (BVPS) $44.95
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 51.60 18.86 42.23 22.56 24.80 20.81 29.77 28.77
Price to next year expected earnings 50.56 15.40 39.64 22.20 21.38 13.18 29.71 29.11
Price-earnings-growth (PEG) 25.13 0.84 6.46 13.73 1.55 0.36 152.18
Price to operating profit (P/OP) 46.30 15.03 34.98 37.81 19.81 16.93 26.54 24.47
Price to sales (P/S) 2.39 1.20 3.05 5.86 3.21 3.83 2.13 2.68 2.46
Price to book value (P/BV) 2.76 10.00 7.14 7.57 8.85 21.07 8.24 7.92

Based on: 10-K (reporting date: 2023-12-31).

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)

RTX Corp., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 38.31 27.59 36.79 24.41
Price to operating profit (P/OP) 34.37 26.48 28.68 15.07
Price to sales (P/S) 1.78 2.14 2.21 1.95 1.75
Price to book value (P/BV) 2.05 1.97 1.95 1.53 3.24

Based on: 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), 10-K (reporting date: 2019-12-31).

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. RTX Corp. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 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. RTX Corp. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 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. RTX Corp. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.
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. RTX Corp. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

RTX Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,326,826,896 1,464,954,584 1,492,330,987 1,519,478,134 865,308,981
Selected Financial Data (US$)
Net income (loss) attributable to common shareowners (in millions) 3,195 5,197 3,864 (3,519) 5,537
Earnings per share (EPS)2 2.41 3.55 2.59 -2.32 6.40
Share price1, 3 92.24 97.87 95.27 72.49 156.20
Valuation Ratio
P/E ratio4 38.31 27.59 36.79 24.41
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 15.55 19.15 16.82 36.80 12.36
Eaton Corp. plc 35.88 27.93 27.77 37.46 18.06
GE Aerospace 16.18 19.67
Honeywell International Inc. 22.73 26.97 23.14 29.63 20.97
Lockheed Martin Corp. 15.35 20.48 16.70 13.44 19.87
P/E Ratio, Sector
Capital Goods 25.10 40.21 57.31 123.55 39.03
P/E Ratio, Industry
Industrials 25.76 36.38 33.32 161.96 49.05

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income (loss) attributable to common shareowners ÷ No. shares of common stock outstanding
= 3,195,000,000 ÷ 1,326,826,896 = 2.41

3 Closing price as at the filing date of RTX Corp. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 92.24 ÷ 2.41 = 38.31

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. RTX Corp. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

RTX Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,326,826,896 1,464,954,584 1,492,330,987 1,519,478,134 865,308,981
Selected Financial Data (US$)
Operating profit (loss) (in millions) 3,561 5,414 4,958 (1,889) 8,966
Operating profit per share2 2.68 3.70 3.32 -1.24 10.36
Share price1, 3 92.24 97.87 95.27 72.49 156.20
Valuation Ratio
P/OP ratio4 34.37 26.48 28.68 15.07
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 12.40 16.25 15.87 24.23 9.08
Eaton Corp. plc 29.72 22.78 19.33 25.83 13.95
GE Aerospace 27.11 19.88 17.46 25.64 9.22
Honeywell International Inc. 18.15 20.84 20.68 24.86 18.81
Lockheed Martin Corp. 12.49 14.06 11.56 10.63 14.49
P/OP Ratio, Sector
Capital Goods 22.37 25.20 22.96 70.31 17.55
P/OP Ratio, Industry
Industrials 21.90 20.37 21.72 48.99 19.39

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating profit (loss) ÷ No. shares of common stock outstanding
= 3,561,000,000 ÷ 1,326,826,896 = 2.68

3 Closing price as at the filing date of RTX Corp. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 92.24 ÷ 2.68 = 34.37

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. RTX Corp. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Sales (P/S)

RTX Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,326,826,896 1,464,954,584 1,492,330,987 1,519,478,134 865,308,981
Selected Financial Data (US$)
Net sales (in millions) 68,920 67,074 64,388 56,587 77,046
Sales per share2 51.94 45.79 43.15 37.24 89.04
Share price1, 3 92.24 97.87 95.27 72.49 156.20
Valuation Ratio
P/S ratio4 1.78 2.14 2.21 1.95 1.75
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.66 1.90 1.87 1.96 2.34
Caterpillar Inc. 2.52 2.27 2.26 2.83 1.48
Eaton Corp. plc 4.98 3.31 3.03 2.96 1.87
GE Aerospace 2.30 1.20 1.50 1.41 1.18
Honeywell International Inc. 3.51 3.78 3.73 4.34 3.51
Lockheed Martin Corp. 1.57 1.78 1.57 1.40 2.07
P/S Ratio, Sector
Capital Goods 2.26 2.09 2.09 2.11 1.92
P/S Ratio, Industry
Industrials 2.21 1.90 2.13 2.17 1.88

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 68,920,000,000 ÷ 1,326,826,896 = 51.94

3 Closing price as at the filing date of RTX Corp. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 92.24 ÷ 51.94 = 1.78

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. RTX Corp. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

RTX Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,326,826,896 1,464,954,584 1,492,330,987 1,519,478,134 865,308,981
Selected Financial Data (US$)
Shareowners’ equity (in millions) 59,798 72,632 73,068 72,163 41,774
Book value per share (BVPS)2 45.07 49.58 48.96 47.49 48.28
Share price1, 3 92.24 97.87 95.27 72.49 156.20
Valuation Ratio
P/BV ratio4 2.05 1.97 1.95 1.53 3.24
Benchmarks
P/BV Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 8.25 8.09 6.62 7.20 5.16
Eaton Corp. plc 6.07 4.04 3.63 3.54 2.48
GE Aerospace 5.43 2.43 2.64 2.89 3.66
Honeywell International Inc. 8.11 8.02 6.91 8.07 6.97
Lockheed Martin Corp. 15.54 12.67 9.62 15.27 39.60
P/BV Ratio, Sector
Capital Goods 6.94 5.31 4.77 5.05 6.91
P/BV Ratio, Industry
Industrials 7.09 5.60 5.49 5.98 6.61

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Shareowners’ equity ÷ No. shares of common stock outstanding
= 59,798,000,000 ÷ 1,326,826,896 = 45.07

3 Closing price as at the filing date of RTX Corp. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 92.24 ÷ 45.07 = 2.05

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. RTX Corp. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.