Is Northrop Grumman Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Northrop Grumman Corp. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued based on its key ratios, including a P/E ratio of 19, a PEG ratio of 0.24, and an EV to EBITDA ratio of 15.82. In comparison, RTX Corp. has a P/E of 37.08, while General Dynamics Corp. shows an attractive valuation with a P/E of 36.68, suggesting that Northrop Grumman is positioned favorably within its industry.
Despite a recent 1-week stock return of -4.65%, Northrop Grumman has outperformed the S&P 500 on a year-to-date basis with a return of 26.68% compared to the S&P's 13.30%. This performance, coupled with its attractive valuation ratios, reinforces the view that Northrop Grumman is currently undervalued in the market.