Is It Too Late To Consider Northrop Grumman (NOC) After A 52% One Year Rally?

Simply Wall St.03-13 14:30

Investors may be wondering if Northrop Grumman's current share price reflects its underlying value, or if the stock might be priced away from its fundamentals. The stock last closed at US$736.30, with...

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The stock last closed at US$736.30, with...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-noc/northrop-grumman/news/is-it-too-late-to-consider-northrop-grumman-noc-after-a-52-o\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late To Consider Northrop Grumman (NOC) After A 52% One Year Rally?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late To Consider Northrop Grumman (NOC) After A 52% One Year Rally?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-13 14:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-noc/northrop-grumman/news/is-it-too-late-to-consider-northrop-grumman-noc-after-a-52-o><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Investors may be wondering if Northrop Grumman's current share price reflects its underlying value, or if the stock might be priced away from its fundamentals. The stock last closed at US$736.30, with...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-noc/northrop-grumman/news/is-it-too-late-to-consider-northrop-grumman-noc-after-a-52-o\">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":"IE00BBT3K403.USD","symbol_name":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-noc/northrop-grumman/news/is-it-too-late-to-consider-northrop-grumman-noc-after-a-52-o","article_id":"2619084165","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/97199-main-header/1756253542416"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-noc/northrop-grumman/news/is-it-too-late-to-consider-northrop-grumman-noc-after-a-52-o","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2619084165","pubTimestamp":1773383432,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Investors may be wondering if Northrop Grumman's current share price reflects its underlying value, or if the stock might be priced away from its fundamentals.\nThe stock last closed at US$736.30, with returns of 7.5% over 30 days, 25.7% year to date and 52.5% over the past year.\nRecent coverage has focused on Northrop Grumman's role as a major U.S. defense contractor and its exposure to long term government programs. This helps frame how investors think about the stock's risk and cash flow...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","NOC":"诺斯罗普格鲁曼","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","BK4588":"碎股","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","BK4585":"ETF&股票定投概念","BK4516":"特朗普概念","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","BK4564":"太空概念","BK4532":"文艺复兴科技持仓","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4187":"航天航空与国防","BK4603":"无人机概念股","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD"},"translate_title":"诺斯罗普·格鲁曼公司(NOC)一年上涨52%后，现在考虑是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"NOC":1.5},"content_text":"Investors may be wondering if Northrop Grumman's current share price reflects its underlying value, or if the stock might be priced away from its fundamentals. The stock last closed at US$736.30, with returns of 7.5% over 30 days, 25.7% year to date and 52.5% over the past year. Recent coverage has focused on Northrop Grumman's role as a major U.S. defense contractor and its exposure to long term government programs. This helps frame how investors think about the stock's risk and cash flow profile. Market commentary has also highlighted how defense names like Northrop Grumman can move when sentiment around government spending, geopolitical tension or defense priorities shifts. On Simply Wall St's valuation checks, Northrop Grumman scores 3 out of 6. Below, we look at what different valuation approaches say about the stock and then finish with a way to tie those methods together into a clearer picture.  Find out why Northrop Grumman's 52.5% return over the last year is lagging behind its peers. AdvertisementApproach 1: Northrop Grumman Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model takes estimates of the cash a business could generate in the future and discounts those amounts back to today, so you can compare that value with the current share price. For Northrop Grumman, the model uses a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month free cash flow is about $3.0b. Analysts supply explicit forecasts for several years, and Simply Wall St then extends these out further. By 2030, the model uses a projected free cash flow of around $4.0b, with intermediate annual projections between 2026 and 2035 discounted back to today. When all those discounted cash flows are added up and divided by the number of shares, the DCF model produces an estimated intrinsic value of about $513.34 per share. Compared with the recent share price of $736.30, this set of assumptions indicates the stock is 43.4% overvalued. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Northrop Grumman may be overvalued by 43.4%. Discover 47 high quality undervalued stocks or create your own screener to find better value opportunities. NOC Discounted Cash Flow as at Mar 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Northrop Grumman. Approach 2: Northrop Grumman Price vs Earnings For a profitable company like Northrop Grumman, the P/E ratio is a straightforward way to see how much investors are currently paying for each dollar of earnings. It connects directly to what the business is earning today, which many investors find easier to relate to than long range cash flow models. What counts as a “normal” or “fair” P/E depends on how fast earnings are expected to grow and how risky those earnings are perceived to be. Higher expected growth or lower perceived risk can justify higher P/E multiples, while slower growth or higher risk usually pulls them lower. Northrop Grumman currently trades on a P/E of 24.99x, compared with an Aerospace & Defense industry average of 42.34x and a peer group average of 50.70x. Simply Wall St also calculates a proprietary “Fair Ratio” of 34.97x for Northrop Grumman, which is the P/E you might expect given factors like its earnings profile, margins, industry, market value and key risks. Because this Fair Ratio is tailored to the company, it can be more informative than a simple comparison to broad industry or peer averages. With the current P/E below the Fair Ratio, this approach indicates that the shares appear undervalued on earnings. Result: UNDERVALUED NYSE:NOC P/E Ratio as at Mar 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies. Upgrade Your Decision Making: Choose your Northrop Grumman Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce Narratives, a simple way for you to set out your own story for Northrop Grumman, link that story to forecasts for revenue, earnings and margins, and arrive at a fair value you can compare with the current price on Simply Wall St’s Community page, where Narratives are updated automatically when new information like earnings or news arrives and where different investors can reasonably land far apart. For example, one Narrative might lean toward the higher analyst price target of US$690.00 based on confidence in defense budgets, while another might sit closer to US$510.00 because of concerns about program risk and sanctions. This gives you a clear, numbers backed way to decide whether the price looks attractive, stretched, or somewhere in between. Do you think there's more to the story for Northrop Grumman? Head over to our Community to see what others are saying! NYSE:NOC 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.Valuation is complex, but we're here to simplify it.Discover if Northrop Grumman might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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