HII holds a near-monopoly in U.S. aircraft carrier and amphibious assault ship construction. This deep expertise and specialized infrastructure create immense barriers to entry for competitors.

↑Long-Term Government Contracts

The company benefits from multi-year, high-value contracts with the U.S. Navy. These predictable revenue streams and the lengthy shipbuilding cycles provide significant stability.

↑Skilled Workforce & Training

HII's investment in programs like WAVES and its Master Shipbuilder recognition highlight a commitment to developing and retaining a highly skilled, specialized workforce essential for complex naval projects.

INVESTMENT RISKS

↓Government Budget Volatility

While a 355-ship navy is proposed, actual defense spending can fluctuate. Changes in political priorities or economic downturns could impact HII's order book.

↓Program Delays and Cost Overruns

Large, complex shipbuilding projects are inherently prone to delays and cost increases. These can negatively affect profitability and investor sentiment, as seen in recent stock performance.

↓Technological Disruption

The advancement of unmanned systems, like HII's ROMULUS USV, while an opportunity, also signals a potential shift in naval warfare that could alter future shipbuilding needs.

Base case

HII base case PE valuation

A base case PE valuation for HII estimates a fair value of about $412.05 per share, against a current price of $298.45. The model assumes 12.6% annual earnings growth, a 19x target PE multiple, and a 10% discount rate.

Intrinsic Value

$412.05

Margin of safety

+27.6%

Expected annual return

+6.7%

Base case assumptions: 12.6% annual earnings growth, 19x 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 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 HII

Or try DCF Valuation for HII →

Company 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)

19.4x

PEG Ratio

1.78

Earnings Yield

5.16%

ROE (TTM)

12.0%

Revenue/Share (TTM)

$326.95

Dividend Yield

1.84%

Debt/Equity

0.57x

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 19.4x combined with a PEG ratio of 1.78 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by 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 (19.4x) against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio (1.78) 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 1.78, calculated by dividing the PE ratio (19.4x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. 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

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P/E and DCF value HII with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.