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, supported by key ratios such as a P/E ratio of 19, a PEG ratio of 0.24, and an EV to EBITDA of 15.82. In comparison to peers, RTX Corp. has a higher P/E of 37.08, while General Dynamics Corp. shows an attractive valuation with a P/E of 36.68.
Despite a recent decline of 4.65% in the past week compared to a 1.70% gain in the S&P 500, Northrop Grumman has delivered a solid year-to-date return of 26.68%, outperforming the index's 13.30%. This performance, along with its attractive valuation metrics, suggests that the stock may present a compelling investment opportunity.