Is RTX Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RTX Corp. has moved from very attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 44, which is significantly higher than peers like Lockheed Martin Corp. with a P/E of 25.66 and Honeywell International, Inc. at 30.10. Additionally, the EV to EBITDA ratio for RTX Corp. is 21.74, compared to General Dynamics Corp. at 25.88, suggesting a competitive positioning in terms of earnings relative to enterprise value.
In terms of returns, RTX Corp. has outperformed the S&P 500 year-to-date with a return of 36.49% compared to the index's 13.30%. However, over the longer term, particularly in the 10-year period, RTX Corp.'s return of 155.79% lags behind the S&P 500's impressive 227.77%. This mixed performance, along with the current valuation ratios, indicates that while RTX Corp. is fairly valued, it may not present a compelling investment opportunity compared to its peers.