Northrop Grumman Corp (NOC) is overvalued and RTX Corp (RTX) is overvalued.
Both trade above our estimate of their intrinsic value. RTX is the closer of the two: -24%, against -25% for NOC.
Values as of the 22 Sept 2026 close.
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
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 | NOC | RTX |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $509.86 | $190.99 |
| Intrinsic value | $408.92 | $154.18 |
| Margin of safety | -25% | -24% |
| Leak Score | 38/100 (10/12) | 55/100 (10/12) |
| Market cap | $72.4B | $257.4B |
| Revenue growth, 5 years | 2.7% | 9.3% |
| Operating margin | 10.7% | 10.7% |
| Net margin | 10.5% | 8.3% |
| Return on equity | 27.0% | 12.0% |
| Debt to equity | 0.95 | 0.59 |
| P/E | 16.2x | 33.6x |
| Forward P/E | 16.7x | 24.2x |
| P/B | 4.0x | 3.9x |
| Dividend yield | 1.9% | 1.5% |