The Boeing Company (BA) Stock Valuation — PE Analysis
Aerospace & Defense · NYSE
Current Price
$229.04
PE Ratio (TTM)
82.6x
Intrinsic Value
$232.11
+1.3% margin of safety
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.
Base case
BA base case PE valuation
A base case PE valuation for BA estimates a fair value of about $232.11 per share, against a current price of $229.04. The model assumes 20.0% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$232.11
Margin of safety
+1.3%
Expected annual return
+0.3%
Base case assumptions: 20.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
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 BA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Boeing Company respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
82.6x
PEG Ratio
0.46
Earnings Yield
1.21%
ROE (TTM)
-8723.1%
Revenue/Share (TTM)
$112.67
Debt/Equity
7.89x
Frequently Asked Questions
What is the PE ratio of BA?
The trailing twelve-month PE ratio of BA reflects how much investors pay per dollar of The Boeing Company's earnings. This metric is most useful when compared to Aerospace & Defense peers and the company's own historical range.
Is BA overvalued based on PE ratio?
BA's PE of 82.6x combined with a PEG ratio of 0.46 provides a growth-adjusted perspective. A PEG below 1.0 suggests BA may be undervalued relative to its 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 BA stock using PE ratio?
To value The Boeing Company using PE: (1) Compare the current PE (82.6x) against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio (0.46) 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 BA?
BA's PEG ratio is 0.46, calculated by dividing the PE ratio (82.6x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for BA stock valuation?
PE ratio gives a quick relative read — how BA 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 BA 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 BA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.