General Dynamics Corp (GD) is slightly undervalued and RTX Corp (RTX) is overvalued.
Against our estimates of intrinsic value, GD trades at the wider discount: a margin of safety of +12%, against -24% for RTX.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 7.3% (average of 3 methods) values the shares at $154.18; the price of $190.99 is 24% above that value, and 82% of that value comes from beyond year five.
Leak Score 55/100 on 10 of 12 signals
| Metric | GD | RTX |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $343.39 | $190.99 |
| Intrinsic value | $389.09 | $154.18 |
| Margin of safety | +12% | -24% |
| Leak Score | 68/100 (10/12) | 55/100 (10/12) |
| Market cap | $92.9B | $257.4B |
| Revenue growth, 5 years | 6.7% | 9.3% |
| Operating margin | 10.3% | 10.7% |
| Net margin | 8.2% | 8.3% |
| Return on equity | 17.8% | 12.0% |
| Debt to equity | 0.35 | 0.59 |
| P/E | 20.9x | 33.6x |
| Forward P/E | 18.5x | 24.2x |
| P/B | 3.5x | 3.9x |
| Dividend yield | 1.8% | 1.5% |