RTX Corporation (RTX) 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

+2.6%

$207.21

vs $201.86 price

Levered DCF

$185.60

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.81

Grey zone

Rating

B+

Overall 3 / 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	36.53×	32.32×	37.56×	28.67×	33.49×	-27.61×	13.63×	9.54×
P/B	3.77×	2.56×	2.01×	2.05×	1.77×	1.35×	1.81×	1.31×
P/S	2.78×	1.91×	1.74×	2.22×	2.01×	1.72×	1.67×	1.45×
EV / EBITDA	18.61×	15.28×	16.35×	15.29×	14.05×	37.88×	13.47×	16.06×
Gross margin	20.1%	19.1%	17.5%	20.4%	19.4%	15.1%	23.7%	20.9%
Operating margin	10.5%	8.1%	5.2%	8.2%	8.0%	-3.3%	10.8%	8.3%
Net margin	7.6%	5.9%	4.6%	7.7%	6.0%	-6.2%	12.2%	15.2%
Current ratio	1.03×	0.99×	1.04×	1.09×	1.19×	1.21×	1.32×	1.13×
Debt / equity	0.61×	0.71×	0.76×	0.46×	0.45×	0.46×	1.07×	1.18×
Interest coverage	5.07×	3.32×	2.15×	4.23×	3.86×	-1.34×	2.87×	2.43×
Dividend yield	1.5%	2.1%	2.7%	2.1%	2.3%	2.8%	3.2%	4.3%
Payout ratio	53.1%	67.4%	101.4%	60.2%	76.5%	-77.6%	44.1%	41.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.3%	7.9%	5.3%	7.2%	5.3%	-4.9%	13.3%	13.7%
Return on invested capital	6.5%	4.6%	2.7%	4.0%	3.3%	-1.5%	4.5%	1.5%
Return on assets	3.9%	2.9%	2.0%	3.3%	2.4%	-2.2%	4.0%	3.9%
Free cash flow yield	3.0%	2.9%	3.9%	3.0%	3.7%	1.7%	8.3%	8.0%
Earnings yield	2.7%	3.1%	2.7%	3.5%	3.0%	-3.6%	7.3%	10.5%
Enterprise value	$278.1B	$191.5B	$158.6B	$176.2B	$154.5B	$121.6B	$115.5B	$89.6B
Net debt / EBITDA	2.15×	2.98×	3.98×	2.37×	2.3×	7.64×	4.66×	7.06×
Cash conversion cycle (days)	118	115	129	117	122	130	119	174