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. Based on the current metrics, the company appears to be 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. When compared to peers, Lockheed Martin's P/E ratio of 20 is significantly lower than RTX Corp.'s 37.08 and Honeywell International's 30.10, indicating a more attractive valuation relative to these competitors.
Despite the fair valuation, Lockheed Martin has underperformed against the S&P 500 over various periods, notably with a 1-year return of -18.78% compared to the S&P 500's 14.08%. This underperformance may suggest market concerns that could impact future growth, but the current valuation ratios indicate that the stock is reasonably priced within its industry context.