Is RTX Corp. overvalued or undervalued?

As of 16 June 2025, the valuation grade for RTX Corp. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company is still considered overvalued. Key ratios include a P/E ratio of 44, an EV to EBITDA of 21.74, and a PEG ratio of 1.30, which suggest that RTX Corp. is trading at a premium compared to its earnings growth potential.
In comparison to its peers, RTX Corp. has a higher P/E ratio of 46.92 compared to Honeywell International's fair valuation P/E of 32.76 and Lockheed Martin's fair P/E of 20.24. This highlights that RTX Corp. is priced significantly higher than some of its competitors, which further supports the conclusion of being overvalued. Additionally, while RTX Corp. has outperformed the S&P 500 with a year-to-date return of 26.00% compared to the index's 2.44%, this strong performance does not negate the current overvaluation based on fundamental metrics.