GD General Dynamics PE ratio, current and historical analysis
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- NYSE: GD
- PE Ratio
The current price-to-earnings ratio for General Dynamics stock as of Jun 10, 2025 is 19.02. This is calculated based on the current EPS of $14.58 and the stock price of $277.37 per share. The PE ratio has decreased by 8% from the past four quarters average of 20.6.
GD PE ratio history
The average historical PE ratio of General Dynamics for the last ten years is 17.75. The current P/E ratio of 19.02 is 7% higher than the historical average. In the past ten years, GD's PE ratio peaked in the Mar 2024 quarter at 22.78, when the stock price was $282.49 and the EPS was $12.4. The lowest point was in the Mar 2020 quarter, when it reached 10.88 with a price of $130.07 and an EPS of $11.95.
General Dynamics PE ratio history chart
General Dynamics PE ratio by year
Maximum annual increase: 40.72% in 2016
Maximum annual decrease: -33.62% in 2018
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2024 | 19.08 | -10.8% | $263.49 | $13.81 |
| 2023 | 21.39 | 6.1% | $259.67 | $12.14 |
| 2022 | 20.16 | 12.25% | $248.11 | $12.31 |
| 2021 | 17.96 | 33.23% | $208.47 | $11.61 |
| 2020 | 13.48 | -7.61% | $148.82 | $11.04 |
| 2019 | 14.59 | 5.12% | $176.35 | $12.09 |
| 2018 | 13.88 | -33.62% | $157.21 | $11.33 |
| 2017 | 20.91 | 2.2% | $203.45 | $9.73 |
| 2016 | 20.46 | 40.72% | $172.66 | $8.44 |
| 2015 | 14.54 | -20.11% | $137.36 | $9.45 |
| 2014 | 18.2 | 27.99% | $137.62 | $7.56 |
| 2013 | 14.22 | N/A | $95.55 | $6.72 |
| 2012 | N/A | N/A | $69.27 | -$0.94 |
| 2011 | 9.57 | -7.18% | $66.41 | $6.94 |
| 2010 | 10.31 | -6.1% | $70.96 | $6.88 |
General Dynamics PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2025 | 18.46 | -3.25% | $269.08 | $14.58 |
| Dec 2024 | 19.08 | -15.46% | $263.49 | $13.81 |
| Sep 2024 | 22.57 | 0.98% | $300.13 | $13.3 |
| Jun 2024 | 22.35 | -1.89% | $290.14 | $12.98 |
| Mar 2024 | 22.78 | 6.5% | $282.49 | $12.4 |
| Dec 2023 | 21.39 | 16.82% | $259.67 | $12.14 |
| Oct 2023 | 18.31 | 4.57% | $220.97 | $12.07 |
| Jul 2023 | 17.51 | -5.3% | $215.15 | $12.29 |
| Apr 2023 | 18.49 | -8.28% | $228.21 | $12.34 |
| Dec 2022 | 20.16 | 14.87% | $248.11 | $12.31 |
| Oct 2022 | 17.55 | -6.8% | $212.17 | $12.09 |
| Jul 2022 | 18.83 | -8.77% | $223.86 | $11.89 |
| Apr 2022 | 20.64 | 14.92% | $242.51 | $11.75 |
| Dec 2021 | 17.96 | 6.08% | $208.47 | $11.61 |
| Oct 2021 | 16.93 | 3.55% | $198.22 | $11.71 |
GD Price vs fair value
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
Fair P/E calculation
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. The fair P/E value is capped at 100 to prevent distortions caused by extreme EPS growth rates, such as those resulting from large percentage increases from a low base.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed vs Dynamic
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
GD average PE ratio chart
GD's current P/E ratio is above the 5 and 10-year averages, but it is lower than the 3-year average.
PE vs average
GD PE vs peers
In comparison to its peers HON and LMT, GD's PE ratio is lower, but it is higher than TXT's. General Dynamics's PE ratio is trading below the peer group average of 20.75.
| Stock name | PE ratio | Market cap |
|---|---|---|
| TXT Textron Inc | 17.38 | $14.05B |
| GD General Dynamics Corp | 19.02 | $74.45B |
| NOC Northrop Grumman Corp | 19.26 | $70.35B |
| LMT Lockheed Martin Corp | 20.49 | $111.74B |
| HON Honeywell International Inc | 25.86 | $145.41B |
| KTOS Kratos Defense & Security Solutions Inc | 302.31 | $6.03B |
| BA Boeing Co | N/A | $162.66B |
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Frequently asked questions
What is General Dynamics's PE ratio?
The price to earnings ratio for GD stock is 19.02 as of Jun 10, 2025.
What is the 3-year average PE ratio for General Dynamics (GD)?
As an average over the last 3 years, GD stock has a PE ratio of 19.79.
What is the 5-year average PE ratio for General Dynamics (GD)?
As an average over the last 5 years, GD stock has a PE ratio of 18.23.
What is the highest PE ratio for GD?
Over the last ten years, the quarterly PE ratio reached a historic high of 22.78 in the Mar 2024 quarter.
How does the current PE ratio for GD compare to its historical average?
The current price to earnings ratio of GD is 7% higher than the 10-year historical average.
How is GD's PE ratio calculated (General Dynamics PE ratio formula)?
The P/E ratio is calculated by taking the latest stock price and dividing it by the EPS for the last 12 months. As of today (Jun 10, 2025), General Dynamics's stock price is $277.37. The earnings per share for the trailing twelve months (TTM) ending Mar 2025 is $14.58. Therefore, General Dynamics's PE ratio for today is 19.02. PE RATIO(19.02) = STOCK PRICE($277.37) / TTM EPS($14.58)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.