Is Lockheed Martin Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Lockheed Martin Corp. has moved from very expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 20, an EV to EBITDA of 14.67, and a Price to Book Value of 16.89. In comparison to peers, RTX Corp. has a P/E of 37.08, while General Dynamics Corp. shows a more attractive P/E of 36.68, indicating that Lockheed Martin is positioned competitively within its industry.
Despite a recent decline in stock performance, Lockheed Martin's YTD return of -2.54% contrasts with the S&P 500's gain of 12.22%, suggesting underperformance in the short term. However, over a three-year horizon, Lockheed Martin's return of 14.32% is significantly lower than the S&P 500's 70.41%, which may indicate potential for improvement in the long term.