GE Aerospace (GE) is overvalued and Northrop Grumman Corp (NOC) is overvalued.
Both trade above our estimate of their intrinsic value. NOC is the closer of the two: -25%, against -329% for GE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.1% (average of 3 methods) values the shares at $74.38; the price of $319.22 is 329% above that value, and 68% of that value comes from beyond year five.
Leak Score 51/100 on 9 of 12 signals
Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $408.92; the price of $509.86 is 25% above that value, and 72% of that value comes from beyond year five.
Leak Score 38/100 on 10 of 12 signals
| Metric | GE | NOC |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $319.22 | $509.86 |
| Intrinsic value | $74.38 | $408.92 |
| Margin of safety | -329% | -25% |
| Leak Score | 51/100 (9/12) | 38/100 (10/12) |
| Market cap | $331.2B | $72.4B |
| Revenue growth, 5 years | -9.6% | 2.7% |
| Operating margin | 18.5% | 10.7% |
| Net margin | 17.7% | 10.5% |
| Return on equity | 48.8% | 27.0% |
| Debt to equity | 1.15 | 0.95 |
| P/E | 37.6x | 16.2x |
| Forward P/E | 35.1x | 16.7x |
| P/B | 18.8x | 4.0x |
| Dividend yield | 0.6% | 1.9% |