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. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 22, a Price to Book Value of 2.49, and an EV to EBITDA of 18.51. In comparison, peers such as Textron, Inc. have a lower P/E ratio of 17.37 and an EV to EBITDA of 14.32, suggesting that Huntington Ingalls may be priced higher relative to its industry peers.
Despite its fair valuation, the company's recent stock performance has been mixed; it has returned 48.18% year-to-date, significantly outperforming the S&P 500's 13.30% return in the same period, but it has lagged over longer horizons, particularly in the 3-year and 5-year returns. This performance highlights the potential for growth, yet the valuation metrics suggest that the stock is currently neither undervalued nor overvalued.