The Boeing Company (BA) Intrinsic Value & DCF Valuation
Aerospace & Defense · NYSE
Current Price
$214.01
Intrinsic Value
Outside reliable range
What Is The Boeing Company's Intrinsic Value?
The base-case DCF model produces an intrinsic value estimate for The Boeing Company (BA) that falls outside its reliable range, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is The Boeing Company (BA) Undervalued?
Because the model output for BA is outside the reliable range, no undervalued or overvalued read is given here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Dominant Commercial Aircraft Duopoly
Boeing, alongside Airbus, forms a duopoly in the large commercial aircraft market. This limits competition and creates high barriers to entry for new manufacturers.
↑Long-Term Defense Contracts
Significant, multi-year defense contracts provide predictable revenue streams and leverage Boeing's established relationships with governments worldwide.
↑Extensive Global Service Network
A vast network for maintenance, repair, and spare parts creates high switching costs for airlines and ensures continued revenue post-sale.
INVESTMENT RISKS
↓Regulatory Scrutiny and Oversight
Increased government oversight and potential penalties stemming from safety investigations can disrupt production and impact financial performance.
↓Supply Chain Volatility
Disruptions in the global supply chain for critical components can lead to production delays and increased costs for aircraft manufacturing.
↓Geopolitical Instability and Defense Budgets
Changes in global defense spending and geopolitical tensions can affect the demand for military aircraft and related services.
Base case
BA base case valuation
Base case assumptions: 9.8% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
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)
$118.82
FCF/Share (TTM)
$0.31
ROIC (TTM)
-7.7%
ROE (TTM)
104.8%
P/FCF
690.4x
EV/EBITDA
29.9x
FCF Yield
0.14%
Debt/Equity
7.52x
On a trailing twelve-month basis, BA generates free cash flow per share of $0.31 alongside a ROIC of -7.7%, both central inputs for a DCF valuation. Its P/FCF ratio of 690.4x and FCF yield of 0.14% then frame how BA is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of BA?
The Boeing Company currently generates $0.31 in free cash flow per share. At the current price of $214.01, 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 trades at a P/FCF ratio of 690.4x with a free cash flow yield of 0.14%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of future growth. However, whether BA is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
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 ($0.31) 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 7.52x, 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% means the company's return on invested capital sits below the level that typically clears 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 7.52x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 29.9x, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.