Huntington Ingalls Industries, Inc. (HII) Stock Valuation — PE Analysis
Aerospace & Defense · NYSE
Current Price
$279.26
PE Ratio (TTM)
16.6x
Intrinsic Value
$311.84
+10.4% margin of safety
COMPETITIVE MOAT
↑Nuclear Shipbuilding Expertise
HII possesses unique, highly specialized expertise in nuclear shipbuilding, a capability few nations and companies possess. This creates significant barriers to entry for potential competitors.
↑Long-Term Government Contracts
The company benefits from long-term, multi-year contracts with the U.S. Navy and other government entities. These contracts provide revenue visibility and stability, making it difficult for rivals to displace HII.
↑AUKUS Submarine Program
HII's involvement in the AUKUS submarine program signifies a critical role in a major international defense initiative. This deepens its strategic importance and locks in future demand.
INVESTMENT RISKS
↓Government Budgetary Constraints
HII's revenue is heavily reliant on U.S. defense spending. Any significant cuts or shifts in government priorities could negatively impact its order book and profitability.
↓Program Delays and Cost Overruns
Large, complex shipbuilding projects are inherently prone to delays and cost overruns. These issues can strain financial performance and damage HII's reputation with its primary customer.
↓Supply Chain Disruptions
The intricate nature of defense manufacturing makes HII vulnerable to disruptions in its global supply chain. Shortages of critical components or materials can halt production and increase costs.
Base case
HII base case PE valuation
A base case PE valuation for HII estimates a fair value of about $311.84 per share, against a current price of $279.26. The model assumes 6.4% annual earnings growth, a 16.69x target PE multiple, and a 10% discount rate.
Intrinsic Value
$311.84
Margin of safety
+10.4%
Expected annual return
+2.2%
Base case assumptions: 6.4% annual earnings growth, 16.69x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HII PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Huntington Ingalls Industries, Inc. respond.
Open PE Calculator for HIICompany Overview
Huntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their design, construction, modernization, and maintenance. The company's diverse operations are segmented into three core divisions: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. HII is a primary builder of non-nuclear ships, delivering amphibious assault ships, expeditionary warfare vessels, surface combatants, and national security cutters to both the U.S. Navy and U.S. Coast Guard. Furthermore, it plays a critical role in providing nuclear-powered ships, including aircraft carriers and submarines, along with essential associated services such as refueling, extensive overhauls, and inactivation procedures. Beyond direct shipbuilding, Huntington Ingalls Industries offers specialized naval nuclear support services, covering the full spectrum from design and construction to maintenance and disposal for active U.S. Navy nuclear fleets, in addition to maintaining nuclear reactor prototypes. Its broader technical and support portfolio includes life-cycle sustainment services for the U.S. Navy fleet and other maritime clients; sophisticated information technology and mission-specific solutions for defense, intelligence, and federal civilian agencies; nuclear facility management, operational support, and environmental remediation services for various government bodies and private sector entities; comprehensive defense and federal solutions; and the development of cutting-edge unmanned systems. Established in 1886, Huntington Ingalls Industries, Inc. is headquartered in Newport News, Virginia.
Financial Metrics — HII PE Stock Valuation Data
PE Ratio (TTM)
16.6x
PEG Ratio
0.65
Earnings Yield
5.99%
ROE (TTM)
12.9%
Revenue/Share (TTM)
$333.80
Dividend Yield
1.98%
Debt/Equity
0.55x
Frequently Asked Questions
What is the PE ratio of HII?
The trailing twelve-month PE ratio of HII reflects how much investors pay per dollar of Huntington Ingalls Industries, Inc.'s earnings. This metric is most useful when compared to Aerospace & Defense peers and the company's own historical range.
Is HII overvalued based on PE ratio?
HII's PE of 16.6x combined with a PEG ratio of 0.65 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Aerospace & Defense, a DCF analysis may be more appropriate.
How do I value HII stock using PE ratio?
To value Huntington Ingalls Industries, Inc. using PE: (1) Compare the current PE (16.6x) against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio (0.65) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of HII?
HII's PEG ratio is 0.65, calculated by dividing the PE ratio (16.6x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HII stock valuation?
PE ratio gives a quick relative read — how HII is priced versus Aerospace & Defense peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See HII DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value HII with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.