Is Lockheed Martin Corp. overvalued or undervalued?

As of 28 January 2025, Lockheed Martin Corp. has moved from a very attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 20, while the EV to EBITDA ratio is 14.67, and the ROE is notably high at 83.04%.
In comparison to peers, RTX Corp. is considered expensive with a P/E of 46.92, while General Dynamics Corp. is rated very attractive with a P/E of 32.81. Lockheed Martin's valuation reflects a competitive position within the industry, although it does not present significant undervaluation at this time. Additionally, the company's recent stock performance has lagged behind the S&P 500 over the past year, which may suggest a cautious outlook for investors.