Is General Dynamics (GD) Fairly Priced After Strong Five Year Share Price Performance

Simply Wall St.01-10

If you are wondering whether General Dynamics is offering fair value at around US$353.89 per share, you are not alone. This article is intended to help you frame that question clearly before you make ...

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This article is intended to help you frame that question clearly before you make ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-gd/general-dynamics/news/is-general-dynamics-gd-fairly-priced-after-strong-five-year\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4187","symbol_name":"航天航空与国防","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-gd/general-dynamics/news/is-general-dynamics-gd-fairly-priced-after-strong-five-year","article_id":"2602684585","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/274561-main-header/1756254842479"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-gd/general-dynamics/news/is-general-dynamics-gd-fairly-priced-after-strong-five-year","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602684585","pubTimestamp":1768012103,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether General Dynamics is offering fair value at around US$353.89 per share, you are not alone. This article is intended to help you frame that question clearly before you make any decisions.\nThe stock has returned 3.1% over the last week, 3.4% over the last month, 3.1% year to date and 39.2% over the past year, with longer term returns of 57.0% over three years and 156.5% over five years.\nRecent attention on General Dynamics has centered on its role as a major U.S...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4187":"航天航空与国防","BK4588":"碎股","GD":"通用动力","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","BK4566":"资本集团","BK4550":"红杉资本持仓","BK4516":"特朗普概念"},"translate_title":"通用动力(GD)在五年强劲的股价表现后定价合理吗","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GD":1.5,"DCF":1},"content_text":"If you are wondering whether General Dynamics is offering fair value at around US$353.89 per share, you are not alone. This article is intended to help you frame that question clearly before you make any decisions. The stock has returned 3.1% over the last week, 3.4% over the last month, 3.1% year to date and 39.2% over the past year, with longer term returns of 57.0% over three years and 156.5% over five years. Recent attention on General Dynamics has centered on its role as a major U.S. defense contractor, with investors closely watching government defense priorities, contract activity and sector sentiment for cues on long term demand. These factors give important context to the share price performance you see today and help frame the questions around what you might reasonably pay for the stock. On our valuation checks, General Dynamics scores 4 out of 6 for being assessed as undervalued. This sets up a closer look at how different valuation methods line up, and how an even more complete way of thinking about value fits in at the end of this article.  Find out why General Dynamics's 39.2% return over the last year is lagging behind its peers. AdvertisementApproach 1: General Dynamics Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model takes estimates of a company’s future cash flows and discounts them back to today using a required return. This gives an estimate of what the whole business might be worth right now. For General Dynamics, the latest twelve month free cash flow is about $4.65b. Analysts have provided explicit forecasts out to 2029, with Simply Wall St extending those estimates further using a 2 Stage Free Cash Flow to Equity approach. By 2029, projected free cash flow is $5.01b, with additional estimates running through 2035 and then tapering growth assumptions in the later years. Bringing all those projected cash flows back to today, this DCF model suggests an intrinsic value of about $369.26 per share. Compared with a recent share price around $353.89, the model indicates roughly a 4.2% discount, which sits in the “close enough” range rather than a clear bargain or clear premium. Result: ABOUT RIGHT General Dynamics is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. GD Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for General Dynamics. Approach 2: General Dynamics Price vs Earnings For a profitable company like General Dynamics, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings. It ties the share price directly to the earnings power of the business, which many investors treat as a core anchor for value. What counts as a “normal” P/E often reflects how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can justify a higher multiple, while slower expected growth or higher risk usually calls for a lower one. General Dynamics currently trades on a P/E of 22.65x. That sits below the Aerospace & Defense industry average of about 38.99x and a peer average of 38.62x. Simply Wall St’s Fair Ratio for General Dynamics is 27.89x, which is its own estimate of an appropriate P/E given the company’s earnings growth profile, industry, profit margins, market cap and risk factors. This Fair Ratio can be more informative than a straight comparison with peers or industry averages because it tries to adjust for General Dynamics’ specific characteristics rather than assuming every company deserves the same multiple. With the current P/E at 22.65x compared with a Fair Ratio of 27.89x, the shares screen as undervalued on this metric. Result: UNDERVALUED NYSE:GD P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your General Dynamics Narrative Earlier we mentioned that there is an even better way to think about value, so let us introduce Narratives, which let you set out your own story for General Dynamics, link that story to specific forecasts for revenue, earnings and margins, and then connect those forecasts to a fair value you can compare against the current price, all within an easy tool on Simply Wall St’s Community page that updates as new news or earnings arrive and that can look very different from one investor to the next. For example, one Narrative might lean toward the higher fair value view around US$384 based on stronger Marine and technology contributions, while another leans closer to the lower end of analyst targets around US$280 if you are more cautious about buyback constraints and contract risks. This gives you a clear, numbers backed way to decide whether the price you see today fits your own outlook. Do you think there's more to the story for General Dynamics? Head over to our Community to see what others are saying! NYSE:GD 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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