Is Lockheed Martin Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lockheed Martin Corp. has moved from very expensive to fair, indicating a shift towards a more favorable assessment. The company appears to be fairly valued at this time. Key valuation 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, RTX Corp. has a P/E of 37.08, while General Dynamics Corp. shows a more attractive P/E of 36.68, highlighting Lockheed Martin's relative valuation position within the aerospace and defense sector.
Despite the recent adjustments in valuation, Lockheed Martin's stock has underperformed compared to the S&P 500, with a 1-year return of -18.78% versus the index's 14.08%. This performance, coupled with its fair valuation grade, suggests that while the stock may not be undervalued, it also does not appear to be overvalued, reflecting a cautious outlook in the current market environment.