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 20th 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:
Its compound free cash flow growth rate, as measured over the past 5.56 years, is -0.06% -- higher than merely 20.46% of stocks in our DCF forecasting set.
GD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 25.49% of tickers in our DCF set.
The weighted average cost of capital for the company is 7. This value is greater than just 24.8% stocks in the Industrials sector that generate free cash flow.
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 BV, DXPE, EVI, FSS, and JCI.