Ship & Boat Building & Repairing · SIC 3730

GENERAL DYNAMICS CORP

GD

Watch

Latest revenue

$13.48B

as of 2026-04-05

Latest net income

$1.13B

as of 2026-04-05

Net margin

8.3%

as of 2026-04-05

Community sentiment

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GD vs S&P 500 · rebased to 100

+13.5% / yr 6.2 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 65.1% total
Compare:

Live market

delayed ≤15 min
$345.69
1.42%
Market cap
$93.49B
Enterprise value
$97.85B
P/E (trailing)
22.2×
Forward P/E
P/B
3.58×
Dividend yield
2.2%
52-wk high
$369.70
52-wk low
$268.10
Beta
Shares out
270.4M

What this company does

AI

ITEM 1. BUSINESS (Dollars in millions, unless otherwise noted) BUSINESS OVERVIEW General Dynamics is a global aerospace and defense company that specializes in high-end design, engineering and manufacturing to deliver state-of-the-art solutions to our customers. We offer a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapon systems and munitions; and technology products and services. Our leadership positions in attractive business aviation and defense markets enable us to deliver superior and enduring capabilities to our customers and returns to our shareholders. Our company consists of 10 business units, which are…

AI summary unavailable — showing raw filing excerpt

Generated from GD's filing dated 2026-01-30

Key risks

AI

ITEM 1A. RISK FACTORS An investment in our common stock or debt securities is subject to risks and uncertainties. Investors should consider the following factors, in addition to the other information contained in this annual report on Form 10-K, before deciding whether to purchase our securities. Investment risks can be market-wide as well as unique to a specific industry or company. The market risks faced by an investor in our securities are similar to the uncertainties faced by investors in a broad range of industries. There are some risks that apply more specifically to our business. Our revenue is concentrated with the U.S. government. This customer relationship involves some specific…

AI summary unavailable — showing raw filing excerpt

Generated from GD's filing dated 2026-01-30

7.7
of 10

ActaClear Score

Above avg
#1 of 7 in Ship & Boat Building & Repairing
+0.1 · 5d
Profitability·25%
10.0
Growth·15%
8.3
Value·20%
6.7
Quality·20%
3.3
Momentum·20%
10.0

Computed from 5 years of SEC fundamentals + latest market data, ranked within Ship & Boat Building & Repairing (7 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

1.16
Price / FV

Fair value · DCF

Overvalued
~14% downside at this growth
6.7% / yr
-5%30%
Terminal growthWACC 9.4% · 10y forecast
Market-implied growth at today's price: 8.6% / yrfor 10 years, holding WACC 9.4% and terminal 2.5%.
Current price
$346
DCF fair value
$299
FCF base (last FY)
$4.21B
Net debt
$4.67B
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does GD's current valuation compare to its own past?

Current P/E
22.2×
Own 5y average
20.5×
Own 5y median
20.4×
vs. own average
+8%
Industry 5y avg P/E
15.9×
Median P/E across the top 7 peers in Ship & Boat Building & Repairing by market cap, then averaged across 5 years.
vs. industry
+40%
PEG (this co.)
3.29
5y revenue CAGR
6.7%
Industry PEG
2.80
Industry 5y avg growth
5.7%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.