General Stock Valuation

GD
 Stock
  

USD 223.86  2.61  1.18%   

What is the value of General Dynamics today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as General Dynamics, is its stock price multiplied by the total number of shares outstanding, calculating General Dynamics' enterprise value requires a different approach. It uses General Dynamics' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Tangible Asset Value is expected to grow to about 28.2 B, whereas Free Cash Flow is forecasted to decline to about 3.4 B.
General Dynamics Corp retains a regular Real Value of $230.1 per share. The prevalent price of the firm is $223.86. At this time, the firm appears to be fairly valued. Our model calculates the value of General Dynamics Corp from evaluating the firm fundamentals such as Return On Asset of 5.43 %, current valuation of 75.83 B, and Return On Equity of 19.66 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
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General Dynamics Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as General Dynamics's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

General Most Recent Valuation Data

Price Book
3.45
Enterprise Value
72.3 B
Enterprise Value Ebitda
13.99
Price Sales
1.62
Forward PE
18.38
Trailing PE
19.17
Enterprise Value Revenue
1.88
Fairly Valued
Today 223.86
Please note that General Dynamics' price fluctuation is very steady at this time. Calculation of the real value of General Dynamics Corp is based on 3 months time horizon. Increasing General Dynamics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for General Dynamics Corp is useful when determining the fair value of the General stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of General Dynamics. Since General Dynamics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of General Stock. However, General Dynamics' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
201.47
Downside
230.10
Real Value
231.71
Upside
Estimating the potential upside or downside of General Dynamics Corp helps investors to forecast how General stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of General Dynamics more accurately as focusing exclusively on General Dynamics' fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
11.5011.5311.60
Details
Hype
Prediction
LowEstimated ValueHigh
221.66223.27224.88
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.400.400.40
Details
12 Analysts
Consensus
LowTarget PriceHigh
210.00234.70247.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use General Dynamics' intrinsic value based on its ongoing forecasts of General Dynamics' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against General Dynamics' closest peers. When choosing an evaluation method for General Dynamics Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

General Valuation Drivers Correlation

Many accounts on the financial statements of General Dynamics Corp are highly interrelated and sometimes correlated. Consequently, when conducting General's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of General
Click cells to compare fundamentals

General Valuation Trend

Knowing General Dynamics' actual value is paramount for traders to make sound investment determinations. General Dynamics' real value is not only important for the investor to make better decisions but also for a more accurate overall view of General Dynamics' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both General Dynamics' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

General Market Cap

General Dynamics Corp is one of the top stocks in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is currently estimated at about 3.1 Trillion. General Dynamics holds roughly 62.08 Billion in market capitalization claiming about 2.0% of stocks in Aerospace & Defense industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

General Dynamics Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining General Dynamics's current stock value. Our valuation model uses many indicators to compare General Dynamics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across General Dynamics competition to find correlations between indicators driving General Dynamics's intrinsic value. More Info.
General Dynamics Corp is one of the top stocks in five year return category among related companies. It is one of the top stocks in beta category among related companies totaling about  0.45  of Beta per Five Year Return. The ratio of Five Year Return to Beta for General Dynamics Corp is roughly  2.23 . Comparative valuation analysis is a catch-all model that can be used if you cannot value General Dynamics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for General Dynamics' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the General Dynamics' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates General Dynamics' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in General Dynamics and how it compares across the competition.

About General Dynamics Valuation

The equity valuation mechanism determines the current worth of General Dynamics Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of General Dynamics Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of General Dynamics Corp based exclusively on its fundamental and basic technical indicators. By analyzing General Dynamics's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of General Dynamics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of General Dynamics. We calculate exposure to General Dynamics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to General Dynamics's related companies.
Last ReportedProjected for 2022
Gross Profit6.4 B6.9 B
Profit Margin 0.09  0.09 
General Dynamics Corporation operates as an aerospace and defense company worldwide. General Dynamics Corporation was founded in 1899 and is headquartered in Reston, Virginia. General Dynamics operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 103100 people.

General Dynamics Quarterly Enterprise Value

77.24 Billion

Share
General Dynamics' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether General Dynamics' value is low or high relative to the company's performance and growth projections. Determining the market value of General Dynamics can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of General Dynamics represents a small ownership stake in the entity. As a stockholder of General, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

General Dynamics Dividends Analysis For Valuation

Please note that General Dynamics has scaled down on payment of dividends at this time. General Dynamics Price to Earnings Ratio are projected to increase significantly based on the last few years of reporting. The past year's Price to Earnings Ratio were at 17.96. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 5 B, whereas Earnings per Basic Share are forecasted to decline to 11.05.
There are various types of dividends General Dynamics can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of General shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from General Dynamics Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When General pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of General Dynamics by the value of the dividends paid out.

General Dynamics Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as General Dynamics does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.98
Earnings Quarterly Growth3.10%
Payout Ratio51.54%
Enterprise Value To Ebitda14.39
Earnings Growth5.20%
Enterprise Value To Revenue1.97

General Dynamics Current Valuation Indicators

Valuation refers to the process of determining the present value of General Dynamics Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value General we look at many different elements of the entity such as General's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. General Dynamics' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final General Dynamics' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as General Dynamics, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use General Dynamics' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes General Dynamics' worth.
Please check Risk vs Return Analysis. Note that the General Dynamics Corp information on this page should be used as a complementary analysis to other General Dynamics' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Complementary Tools for General Stock analysis

When running General Dynamics Corp price analysis, check to measure General Dynamics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy General Dynamics is operating at the current time. Most of General Dynamics' value examination focuses on studying past and present price action to predict the probability of General Dynamics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move General Dynamics' price. Additionally, you may evaluate how the addition of General Dynamics to your portfolios can decrease your overall portfolio volatility.
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Is General Dynamics' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of General Dynamics. If investors know General will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about General Dynamics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.052
Market Capitalization
62.2 B
Return On Assets
0.0543
Return On Equity
0.2
The market value of General Dynamics Corp is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General Dynamics' value that differs from its market value or its book value, called intrinsic value, which is General Dynamics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because General Dynamics' market value can be influenced by many factors that don't directly affect General Dynamics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between General Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine General Dynamics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General Dynamics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.