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 positive shift in its valuation outlook. The company is currently considered undervalued, supported by a P/E ratio of 19, a PEG ratio of 0.24, and an EV to EBITDA ratio 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% over the past week, Northrop Grumman has outperformed the S&P 500 year-to-date with a return of 26.68% compared to the index's 13.30%. This performance, combined with its attractive valuation metrics, reinforces the view that Northrop Grumman is currently undervalued in the aerospace and defense sector.