General Dynamics Corporation (GD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-7.2%

$342.72

vs $369.47 price

Levered DCF

$490.80

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.34

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.53×	19.08×	21.39×	20.16×	17.96×	13.48×	14.59×	13.88×
P/B	3.55×	3.31×	3.33×	3.68×	3.31×	2.73×	3.74×	3.96×
P/S	1.73×	1.53×	1.68×	1.73×	1.52×	1.13×	1.29×	1.28×
EV / EBITDA	15.51×	14.11×	15.27×	14.91×	13.48×	10.7×	11.52×	11.08×
Gross margin	15.1%	15.4%	15.8%	16.8%	16.7%	16.7%	17.8%	18.4%
Operating margin	10.2%	10.1%	10.0%	10.7%	10.8%	10.9%	11.6%	12.1%
Net margin	8.0%	7.9%	7.8%	8.6%	8.5%	8.4%	8.9%	9.2%
Current ratio	1.44×	1.37×	1.44×	1.37×	1.43×	1.35×	1.21×	1.23×
Debt / equity	0.38×	0.48×	0.52×	0.65×	0.75×	0.94×	0.99×	1.06×
Interest coverage	17.06×	12.2×	10.64×	10.77×	9.66×	8.45×	9.68×	11.75×
Dividend yield	1.8%	2.1%	2.0%	2.0%	2.2%	2.9%	2.3%	2.3%
Payout ratio	37.8%	40.4%	43.1%	40.4%	40.4%	39.2%	33.1%	32.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.4%	17.1%	15.6%	18.3%	18.5%	20.2%	25.7%	28.5%
Return on invested capital	10.6%	10.0%	9.0%	9.4%	9.4%	9.1%	10.6%	11.4%
Return on assets	7.4%	6.8%	6.0%	6.6%	6.5%	6.2%	7.1%	7.4%
Free cash flow yield	4.4%	4.4%	5.4%	5.1%	5.8%	6.8%	3.9%	5.3%
Earnings yield	4.6%	5.2%	4.7%	5.0%	5.6%	7.4%	6.9%	7.2%
Enterprise value	$98.3B	$82.1B	$80.1B	$79.2B	$70B	$54.6B	$63.4B	$57.9B
Net debt / EBITDA	1.18×	1.54×	1.75×	2.05×	2.23×	2.33×	2.28×	2.19×
Cash conversion cycle (days)	129	144	151	142	134	140	141	139