Is RTX Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RTX Corp. has moved from very attractive to fair, indicating a shift in market perception. Based on the current metrics, RTX Corp. appears to be fairly valued. The P/E ratio stands at 44, which is significantly higher than peers like Lockheed Martin Corp. at 25.66 and Honeywell International, Inc. at 30.10. Additionally, the EV to EBITDA ratio for RTX Corp. is 21.74, while General Dynamics Corp. has a higher ratio of 25.88, suggesting RTX is trading at a premium compared to some peers.
In terms of performance, RTX Corp. has shown strong returns year-to-date at 36.49%, outperforming the S&P 500's 13.30% during the same period. However, over the last 10 years, RTX Corp.'s return of 155.79% lags behind the S&P 500's impressive 227.77%. Overall, the company's valuation ratios and performance metrics suggest that while RTX Corp. is currently fairly valued, it faces competitive pressures from its peers in the aerospace and defense sector.