Boeing Co (BA) is overvalued and General Dynamics Corp (GD) is slightly undervalued.
Against our estimates of intrinsic value, GD trades at the wider discount: a margin of safety of +12%, against -295% for BA.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $50.02; the price of $197.72 is 295% above that value, and 72% of that value comes from beyond year five.
Leak Score 29/100 on 9 of 12 signals
Discounting its cash flows at 7.6% (average of 3 methods) values the shares at $389.09; the price of $343.39 is 12% below that value, and 81% of that value comes from beyond year five.
Leak Score 68/100 on 10 of 12 signals
| Metric | BA | GD |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $197.72 | $343.39 |
| Intrinsic value | $50.02 | $389.09 |
| Margin of safety | -295% | +12% |
| Leak Score | 29/100 (9/12) | 68/100 (10/12) |
| Market cap | $156.3B | $92.9B |
| Revenue growth, 5 years | 9.0% | 6.7% |
| Operating margin | -5.4% | 10.3% |
| Net margin | 2.2% | 8.2% |
| Return on equity | 173.6% | 17.8% |
| Debt to equity | 7.52 | 0.35 |
| P/E | 90.0x | 20.9x |
| Forward P/E | 50.0x | 18.5x |
| P/B | 25.6x | 3.5x |
| Dividend yield | 0.0% | 1.8% |