Is General Dynamics Corp. overvalued or undervalued?

As of 24 July 2024, the valuation grade for General Dynamics Corp. has moved from fair to very attractive, indicating a strong improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 32, an EV to EBITDA of 23.16, and a ROE of 17.89%.
In comparison to its peers, General Dynamics Corp. has a P/E ratio that is lower than RTX Corp. at 46.92 and slightly higher than Honeywell International, Inc. at 32.76, which is categorized as fair. While General Dynamics has a PEG ratio of 1.69, indicating reasonable growth expectations, its dividend yield of 1.22% also adds to its attractiveness. Notably, the stock has outperformed the S&P 500 in the past week and month, reinforcing its valuation story.