The Boeing Company (BA) Stock Valuation — DCF Analysis
Aerospace & Defense · NYSE
Current Price
$219.05
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Dominant Commercial Aircraft Manufacturer
Boeing holds a duopoly in large commercial aircraft manufacturing, creating significant barriers to entry for new competitors. This entrenched position allows for substantial pricing power and long-term customer relationships.
↑Extensive Defense Contracts
Long-standing relationships and classified technology in defense programs provide a stable revenue stream and high switching costs for governments. These contracts are difficult for rivals to penetrate.
↑Global Aftermarket Services Network
Boeing's established global network for parts, maintenance, and support creates a sticky ecosystem for its aircraft. This comprehensive service offering is a significant advantage for operators.
INVESTMENT RISKS
↓Production Quality and Safety Concerns
Recent quality control issues and safety incidents have led to increased scrutiny and regulatory oversight. This can impact production rates, delivery schedules, and customer confidence.
↓Intense Competition and Market Shifts
While a duopoly exists, Airbus remains a formidable competitor. Emerging technologies and potential new entrants in niche markets could challenge Boeing's dominance.
↓Geopolitical and Economic Volatility
Global economic downturns, trade disputes, and geopolitical tensions can significantly impact airline demand and defense spending. Fuel cost fluctuations also affect airline profitability and aircraft orders.
Customize the BA valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for The Boeing Company respond.
Open DCF Calculator for BACompany Overview
The Boeing Company is a global aerospace powerhouse specializing in the design, development, manufacture, sale, and comprehensive support of commercial airliners, military aircraft, satellites, missile defense systems, human space flight, and launch technologies, along with related services across the globe. Its operations are organized into four key segments. The Commercial Airplanes division delivers commercial jet aircraft for passenger and cargo transport, alongside essential fleet support services. The Defense, Space & Security segment concentrates on the research, development, production, and modification of manned and unmanned military aircraft, advanced weapons systems, strategic defense and intelligence solutions (including missile defense, command, control, communications, computers, intelligence, surveillance, and reconnaissance, cyber, and information solutions), and satellite systems for both governmental and commercial use, encompassing space exploration. The Global Services segment provides a vast array of support, such as supply chain and logistics management, engineering, maintenance, upgrades, spare parts, pilot and maintenance training, technical documentation, and data analytics for its commercial and defense clientele. Lastly, the Boeing Capital segment offers financing services, overseeing a portfolio of equipment under various lease and financing structures. Founded in 1916, the company is headquartered in Chicago, Illinois.
Financial Metrics — BA Stock Valuation Data
Revenue/Share (TTM)
$112.67
FCF/Share (TTM)
$-1.27
ROIC (TTM)
-7.7%
ROE (TTM)
-8723.1%
P/FCF
n/m
EV/EBITDA
28.7x
FCF Yield
-0.60%
Debt/Equity
7.89x
BA currently has negative free cash flow, so cash-flow ratios such as P/FCF and FCF yield do not give a meaningful read on whether the stock is cheap or expensive. A DCF valuation is unreliable until cash generation turns positive — focus on the path to profitability instead.
Frequently Asked Questions
What is the intrinsic value of BA?
The Boeing Company currently generates $-1.27 in free cash flow per share. At the current price of $219.05, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is BA undervalued?
BA currently has negative free cash flow, so its P/FCF ratio is not meaningful and cannot tell you whether the stock is cheap or expensive. With cash flow negative, a DCF-based undervalued or overvalued judgment is unreliable — look at the path back to positive cash generation instead.
How do I value BA stock using DCF?
To perform a DCF valuation on The Boeing Company: (1) Start with the trailing free cash flow per share ($-1.27) as the base, (2) project future FCF growth over 5-10 years based on Aerospace & Defense industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BA's risk profile — with a debt-to-equity of 7.89x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to BA?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The Boeing Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Aerospace & Defense trends, then discounting those amounts to today's dollars. BA's ROIC of -7.7% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect BA stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BA, with a debt-to-equity ratio of 7.89x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 28.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See BA PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Industrials valuationsDCF and P/E value BA with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.