The Boeing Company (BA) Stock Valuation — PE Analysis
Aerospace & Defense · NYSE
Current Price
$220.32
PE Ratio (TTM)
82.5x
Intrinsic Value
$165.18
-33.4% margin of safety
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 PE valuation
At a current price of $220.32, the base case PE valuation puts BA fair value near $165.18 per share. That figure assumes 9.4% yearly earnings growth, a target PE multiple of 50x, and a 10% discount rate.
Intrinsic Value
$165.18
Margin of safety
-33.4%
Expected annual return
-5.6%
Base case assumptions: 9.4% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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)
82.5x
PEG Ratio
0.44
Earnings Yield
1.40%
ROE (TTM)
104.8%
Revenue/Share (TTM)
$118.82
Debt/Equity
7.52x
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 82.5x combined with a PEG ratio of 0.44 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 BA stock using PE ratio?
To value The Boeing Company using PE: (1) Compare the current PE (82.5x) against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio (0.44) 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 0.44, calculated by dividing the PE ratio (82.5x) 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 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 BA, with a strong ROE of 104.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.