Is Huntington Ingalls Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Huntington Ingalls Industries, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 22, while the EV to EBITDA ratio is 18.51, and the Price to Book Value is 2.49. In comparison, peers such as Textron, Inc. have a P/E of 17.37 and an EV to EBITDA of 14.32, suggesting that Huntington Ingalls may be priced higher relative to its industry counterparts.
Recent performance shows that Huntington Ingalls has delivered a year-to-date return of 48.18%, significantly outperforming the S&P 500's return of 13.30% over the same period. However, over longer time frames, such as three years and five years, the company has lagged behind the S&P 500, with returns of 22.81% and 89.20%, respectively, compared to 81.19% and 91.29% for the index. This mixed performance reinforces the notion that while the company is currently fairly valued, its long-term growth may be challenged relative to broader market trends.