General Dynamics operates as aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The company was founded in 1899 and is based in Falls Church, Virginia.
GD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for General Dynamics Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that General Dynamics Corp ranked in the 31th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for GD, they are:
In the past 5.5 years, General Dynamics Corp has a compound free cash flow growth rate of -0.05%; that's higher than just 16.42% of free cash flow generating stocks in the Industrials sector.
General Dynamics Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 12% of tickers in our DCF set.
GD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than only 12% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GD, try IEX, MSA, HSII, LAWS, and MRCY.
General Dynamics Information Technology, a business unit of General Dynamics ([[GD]] -0.4%), is selected as one of three prime contractors on the U.S. Department of State's Global Support Strategy 2.0 indefinite delivery, indefinite quantity contract ((IDIQ)) vehicle.The IDIQ awarded in Q4 has a total estimated value of up to $3.3B...
FALLS CHURCH, Va., Jan. 22, 2021 /PRNewswire/ -- General Dynamics Information Technology (GDIT), a business unit of General Dynamics (NYSE:GD), announced today that it has been selected as one of three prime contractors on the U.S. Department of State's Global Support Strategy (GSS) 2.0…
General Dynamics Information Technology (GDIT), a business unit of General Dynamics (NYSE:GD), announced today it has been awarded the United States Army Europe (USAREUR) Enterprise Mission Information Technology Services (EMITS) task order by the General Services Administration (GSA). The task order, awarded in fourth-quarter 2020, has a total estimated value of $695 million over a five-year period, inclusive of a three-month transition, one-year base period and four one-year options.