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
RTX Corp., current price multiples
| 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) | $194.00 | |||||||||||
| No. shares of common stock outstanding | 1,342,287,676 | |||||||||||
| Growth rate (g) | 2.06% | |||||||||||
| Earnings per share (EPS) | $5.02 | |||||||||||
| Next year expected EPS | $5.12 | |||||||||||
| Operating profit per share | $6.93 | |||||||||||
| Sales per share | $66.01 | |||||||||||
| Book value per share (BVPS) | $48.61 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 38.68 | 81.62 | 37.53 | 35.51 | 35.02 | 29.78 | 27.98 | 36.94 | 28.04 | |||
| Price to next year expected earnings | 37.90 | 15,928.58 | 28.41 | 32.53 | 34.42 | 26.07 | 20.45 | 35.04 | 25.52 | |||
| Price-earnings-growth (PEG) | 18.76 | — | 1.17 | 3.88 | 20.12 | 2.09 | 0.76 | 6.82 | 2.83 | |||
| Price to operating profit (P/OP) | 28.00 | 36.03 | 29.90 | 27.86 | 27.67 | 25.27 | 18.16 | 27.26 | 22.52 | |||
| Price to sales (P/S) | 2.94 | 1.72 | 5.21 | 5.29 | 7.20 | 3.76 | 1.87 | 3.49 | 2.67 | |||
| Price to book value (P/BV) | 3.99 | 28.28 | 15.64 | 7.47 | 16.32 | 10.13 | 20.89 | 9.81 | 7.70 | |||
Based on: 10-K (reporting date: 2025-12-31).
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
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit varied trends over the five-year period. Generally, ratios demonstrate increased volatility in later years, particularly from 2024 onwards. Several ratios increased significantly between 2023 and 2025, suggesting a potential shift in market perception or underlying fundamentals.
- Price to Earnings (P/E)
- The Price to Earnings ratio fluctuated considerably. It decreased from 36.79 in 2021 to 27.59 in 2022, then increased to 38.31 in 2023. A slight decrease to 36.25 was observed in 2024, followed by a notable increase to 39.61 in 2025. This suggests the market’s willingness to pay for each dollar of earnings has been dynamic, with a recent upward trend.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio showed relative stability between 2021 and 2023, ranging from 26.48 to 34.37. A decrease was noted in 2024 to 26.47, and then a rise to 28.67 in 2025. This ratio’s movements generally mirrored those of the P/E ratio, though with less pronounced fluctuations.
- Price to Sales (P/S)
- The Price to Sales ratio decreased from 2.21 in 2021 to 1.78 in 2023, indicating a declining valuation relative to revenue. However, the ratio rebounded to 2.14 in 2024 and increased substantially to 3.01 in 2025. This significant increase suggests a potentially changing market outlook regarding the company’s revenue generation capabilities.
- Price to Book Value (P/BV)
- The Price to Book Value ratio exhibited a consistent, albeit gradual, increase from 1.95 in 2021 to 2.05 in 2023. A more substantial increase was observed in 2024, reaching 2.88, and continued to rise sharply to 4.09 in 2025. This indicates a growing premium placed on the company’s net asset value by the market, potentially reflecting increased confidence in future profitability or asset utilization.
Overall, the observed trends suggest a strengthening valuation, particularly in the most recent year, across all considered price multiples. The increases in P/S and P/BV from 2023 to 2025 are particularly noteworthy and warrant further investigation.
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Price to Earnings (P/E)
RTX Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,342,287,676 | 1,332,122,758 | 1,326,826,896 | 1,464,954,584 | 1,492,330,987 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to common shareowners (in millions) | 6,732) | 4,774) | 3,195) | 5,197) | 3,864) | |
| Earnings per share (EPS)2 | 5.02 | 3.58 | 2.41 | 3.55 | 2.59 | |
| Share price1, 3 | 198.66 | 129.92 | 92.24 | 97.87 | 95.27 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 39.61 | 36.25 | 38.31 | 27.59 | 36.79 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | 97.12 | — | — | — | — | |
| Caterpillar Inc. | 40.55 | 15.65 | 15.55 | 19.15 | 16.82 | |
| Eaton Corp. plc | 35.55 | 30.00 | 35.88 | 27.93 | 27.77 | |
| GE Aerospace | 36.01 | 33.42 | 16.18 | — | — | |
| Honeywell International Inc. | 32.62 | 23.10 | 22.73 | 26.97 | 23.14 | |
| Lockheed Martin Corp. | 28.55 | 20.18 | 15.35 | 20.48 | 16.70 | |
| P/E Ratio, Sector | ||||||
| Capital Goods | 39.12 | 41.71 | 25.10 | 40.21 | 57.31 | |
| P/E Ratio, Industry | ||||||
| Industrials | 29.14 | 28.42 | 24.85 | 36.06 | 35.59 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income attributable to common shareowners ÷ No. shares of common stock outstanding
= 6,732,000,000 ÷ 1,342,287,676 = 5.02
3 Closing price as at the filing date of RTX Corp. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 198.66 ÷ 5.02 = 39.61
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuations over the five-year period. Initially, the P/E ratio decreased from 2021 to 2022, then increased in 2023, followed by a slight decrease in 2024, and a further increase in 2025. This movement occurred in conjunction with changes in both share price and earnings per share.
- Share Price
- The share price demonstrated an initial increase from 2021 to 2022, followed by a decline in 2023. A substantial increase occurred between 2023 and 2024, and this upward trend continued, accelerating between 2024 and 2025.
- Earnings Per Share (EPS)
- Earnings per share increased from 2021 to 2022. A decrease was observed in 2023, but EPS recovered in 2024 and experienced significant growth between 2024 and 2025.
- P/E Ratio Trend
- The P/E ratio began at 36.79 in 2021, decreased to 27.59 in 2022, and then rose to 38.31 in 2023. It slightly decreased to 36.25 in 2024 before increasing to 39.61 in 2025. The fluctuations in the P/E ratio largely reflect the combined effect of changes in share price and earnings per share. The most significant increase in the P/E ratio occurred between 2024 and 2025, coinciding with a substantial increase in share price and a notable increase in EPS.
The relationship between share price and EPS appears to be the primary driver of the P/E ratio’s movements. While the P/E ratio remained relatively stable between 36 and 39 for most of the period, the final year showed a clear increase, suggesting investors were willing to pay a higher premium for each dollar of earnings.
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Price to Operating Profit (P/OP)
RTX Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,342,287,676 | 1,332,122,758 | 1,326,826,896 | 1,464,954,584 | 1,492,330,987 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 9,300) | 6,538) | 3,561) | 5,414) | 4,958) | |
| Operating profit per share2 | 6.93 | 4.91 | 2.68 | 3.70 | 3.32 | |
| Share price1, 3 | 198.66 | 129.92 | 92.24 | 97.87 | 95.27 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 28.67 | 26.47 | 34.37 | 26.48 | 28.68 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | 42.88 | — | — | — | — | |
| Caterpillar Inc. | 32.30 | 12.92 | 12.40 | 16.25 | 15.87 | |
| Eaton Corp. plc | 27.89 | 24.57 | 29.72 | 22.78 | 19.33 | |
| GE Aerospace | 28.45 | 26.78 | 27.11 | 19.88 | 17.46 | |
| Honeywell International Inc. | 27.68 | 17.71 | 18.15 | 20.84 | 20.68 | |
| Lockheed Martin Corp. | 18.53 | 15.35 | 12.49 | 14.06 | 11.56 | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | 28.87 | 28.93 | 22.37 | 25.20 | 22.96 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.41 | 23.03 | 20.78 | 19.86 | 22.38 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 9,300,000,000 ÷ 1,342,287,676 = 6.93
3 Closing price as at the filing date of RTX Corp. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 198.66 ÷ 6.93 = 28.67
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio for the analyzed period exhibits fluctuations, generally correlating with movements in the share price and operating profit per share. Initial values demonstrate a period of relative stability, followed by more pronounced changes in later years.
- Share Price
- The share price experienced a modest increase from 2021 to 2022, followed by a decrease in 2023. A significant increase is then observed in 2024 and continues into 2025, representing substantial growth over the period.
- Operating Profit Per Share
- Operating profit per share increased from 2021 to 2022, but then decreased in 2023. Similar to the share price, operating profit per share shows a substantial increase from 2023 to 2025.
- P/OP Ratio
- The P/OP ratio began at 28.68 in 2021 and decreased to 26.48 in 2022, coinciding with a relatively stable share price and increasing operating profit per share. In 2023, the ratio increased to 34.37, driven by a decrease in operating profit per share despite a slight share price decline. The ratio then decreased to 26.47 in 2024, as both the share price and operating profit per share increased. Finally, the P/OP ratio increased slightly to 28.67 in 2025, reflecting continued growth in the share price and operating profit per share.
- The fluctuations in the P/OP ratio suggest a dynamic relationship between investor sentiment, perceived future profitability, and actual operating performance. The increase in 2023, despite a falling share price, indicates that investors may have anticipated further declines in operating profit. The subsequent decreases in 2024 and 2025, alongside rising share prices and operating profit, suggest increasing investor confidence.
Overall, the P/OP ratio demonstrates sensitivity to changes in both share price and operating profit per share. The latter years of the period are characterized by significant growth in both metrics, resulting in a P/OP ratio that remains within a relatively consistent range despite the substantial increases in absolute values.
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Price to Sales (P/S)
RTX Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,342,287,676 | 1,332,122,758 | 1,326,826,896 | 1,464,954,584 | 1,492,330,987 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 88,603) | 80,738) | 68,920) | 67,074) | 64,388) | |
| Sales per share2 | 66.01 | 60.61 | 51.94 | 45.79 | 43.15 | |
| Share price1, 3 | 198.66 | 129.92 | 92.24 | 97.87 | 95.27 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.01 | 2.14 | 1.78 | 2.14 | 2.21 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 2.05 | 1.98 | 1.66 | 1.90 | 1.87 | |
| Caterpillar Inc. | 5.63 | 2.75 | 2.52 | 2.27 | 2.26 | |
| Eaton Corp. plc | 5.29 | 4.58 | 4.98 | 3.31 | 3.03 | |
| GE Aerospace | 7.41 | 6.24 | 2.30 | 1.20 | 1.50 | |
| Honeywell International Inc. | 4.12 | 3.42 | 3.51 | 3.78 | 3.73 | |
| Lockheed Martin Corp. | 1.91 | 1.52 | 1.57 | 1.78 | 1.57 | |
| P/S Ratio, Sector | ||||||
| Capital Goods | 3.69 | 2.77 | 2.26 | 2.09 | 2.09 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.78 | 2.29 | 2.06 | 1.80 | 2.07 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 88,603,000,000 ÷ 1,342,287,676 = 66.01
3 Closing price as at the filing date of RTX Corp. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 198.66 ÷ 66.01 = 3.01
5 Click competitor name to see calculations.
The price to sales ratio exhibited fluctuating behavior over the five-year period. Initial values decreased before increasing substantially in later years. Share price and sales per share both demonstrated an overall upward trajectory, though not consistently year-over-year.
- Price to Sales Ratio
- The price to sales ratio began at 2.21 in 2021, declining slightly to 2.14 in 2022. A decrease to 1.78 was observed in 2023, representing the lowest value within the observed timeframe. The ratio then increased to 2.14 in 2024, followed by a significant rise to 3.01 in 2025. This suggests a growing premium investors were willing to pay for each dollar of sales generated by the end of the period.
- Share Price
- The share price experienced a modest increase from US$95.27 in 2021 to US$97.87 in 2022. A subsequent decline to US$92.24 occurred in 2023. However, a substantial increase was noted in 2024, reaching US$129.92, and continued upward to US$198.66 in 2025. This indicates a strong positive trend in investor valuation of the company’s stock over the latter part of the period.
- Sales per Share
- Sales per share showed consistent growth throughout the period. It increased from US$43.15 in 2021 to US$45.79 in 2022, then to US$51.94 in 2023. Further growth was observed in 2024, reaching US$60.61, and continued to US$66.01 in 2025. This consistent increase suggests improving revenue generation relative to the number of outstanding shares.
The increasing price to sales ratio in 2025, coupled with the rising share price and sales per share, suggests positive market sentiment and potentially increased investor confidence in the company’s future growth prospects. The dip in the price to sales ratio in 2023, despite increasing sales per share, warrants further investigation to understand the underlying factors contributing to this divergence.
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Price to Book Value (P/BV)
RTX Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,342,287,676 | 1,332,122,758 | 1,326,826,896 | 1,464,954,584 | 1,492,330,987 | |
| Selected Financial Data (US$) | ||||||
| Shareowners’ equity (in millions) | 65,245) | 60,156) | 59,798) | 72,632) | 73,068) | |
| Book value per share (BVPS)2 | 48.61 | 45.16 | 45.07 | 49.58 | 48.96 | |
| Share price1, 3 | 198.66 | 129.92 | 92.24 | 97.87 | 95.27 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 4.09 | 2.88 | 2.05 | 1.97 | 1.95 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | 33.65 | — | — | — | — | |
| Caterpillar Inc. | 16.90 | 8.66 | 8.25 | 8.09 | 6.62 | |
| Eaton Corp. plc | 7.48 | 6.16 | 6.07 | 4.04 | 3.63 | |
| GE Aerospace | 16.78 | 11.33 | 5.43 | 2.43 | 2.64 | |
| Honeywell International Inc. | 11.09 | 7.08 | 8.11 | 8.02 | 6.91 | |
| Lockheed Martin Corp. | 21.31 | 17.00 | 15.54 | 12.67 | 9.62 | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | 10.39 | 7.55 | 6.94 | 5.31 | 4.77 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 8.00 | 6.68 | 6.85 | 5.50 | 5.44 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Shareowners’ equity ÷ No. shares of common stock outstanding
= 65,245,000,000 ÷ 1,342,287,676 = 48.61
3 Closing price as at the filing date of RTX Corp. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 198.66 ÷ 48.61 = 4.09
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibited a consistent upward trend over the five-year period. Initially, the ratio demonstrated relative stability, followed by a period of accelerating growth.
- Initial Stability (2021-2023)
- From December 31, 2021, to December 31, 2023, the P/BV ratio remained relatively stable, fluctuating between 1.95 and 2.05. This suggests a consistent market valuation of the company’s net asset value during this timeframe. While there was a slight increase from 1.95 in 2021 to 2.05 in 2023, the change was incremental.
- Accelerated Growth (2023-2025)
- Beginning December 31, 2023, the P/BV ratio experienced a significant increase. It rose to 2.88 by December 31, 2024, and further increased to 4.09 by December 31, 2025. This represents a substantial shift in market perception regarding the company’s value relative to its book value. The acceleration in the ratio’s growth suggests increasing investor confidence or a reassessment of the company’s future earnings potential.
- Share Price and Book Value Per Share Trends
- The share price demonstrated an overall upward trajectory, though not consistently. A notable increase occurred between December 31, 2023, and December 31, 2025, mirroring the increase in the P/BV ratio. The book value per share experienced a slight decrease between 2021 and 2023, followed by a recovery and modest growth through 2025. The combined effect of the share price increase and the relatively stable book value per share contributed to the observed increase in the P/BV ratio.
The increasing P/BV ratio indicates that the market is placing a progressively higher premium on the company’s net assets. This could be due to anticipated future growth, improved profitability, or changes in investor sentiment. Further investigation into the underlying drivers of these changes would be necessary to fully understand the implications of this trend.
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