Intrinsic value of General Dynamics - GD

Previous Close

$192.63

  Intrinsic Value

$410.67

stock screener

  Rating & Target

str. buy

+113%

Previous close

$192.63

 
Intrinsic value

$410.67

 
Up/down potential

+113%

 
Rating

str. buy

We calculate the intrinsic value of GD stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 57.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  19.70
  18.23
  16.91
  15.72
  14.64
  13.68
  12.81
  12.03
  11.33
  10.70
  10.13
  9.61
  9.15
  8.74
  8.36
  8.03
  7.72
  7.45
  7.21
  6.99
  6.79
  6.61
  6.45
  6.30
  6.17
  6.06
  5.95
  5.85
  5.77
  5.69
Revenue, $m
  37,075
  43,833
  51,244
  59,298
  67,982
  77,282
  87,184
  97,673
  108,737
  120,366
  132,554
  145,297
  158,594
  172,449
  186,871
  201,870
  217,463
  233,667
  250,506
  268,006
  286,196
  305,109
  324,781
  345,252
  366,563
  388,759
  411,890
  436,005
  461,159
  487,410
Variable operating expenses, $m
  32,303
  37,962
  44,167
  50,910
  58,181
  65,967
  74,258
  83,040
  92,303
  102,040
  110,983
  121,652
  132,785
  144,386
  156,461
  169,020
  182,075
  195,642
  209,741
  224,393
  239,623
  255,458
  271,929
  289,068
  306,911
  325,496
  344,862
  365,053
  386,114
  408,093
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  32,303
  37,962
  44,167
  50,910
  58,181
  65,967
  74,258
  83,040
  92,303
  102,040
  110,983
  121,652
  132,785
  144,386
  156,461
  169,020
  182,075
  195,642
  209,741
  224,393
  239,623
  255,458
  271,929
  289,068
  306,911
  325,496
  344,862
  365,053
  386,114
  408,093
Operating income, $m
  4,772
  5,872
  7,078
  8,388
  9,801
  11,315
  12,926
  14,633
  16,433
  18,326
  21,571
  23,644
  25,808
  28,063
  30,410
  32,851
  35,388
  38,025
  40,765
  43,613
  46,573
  49,651
  52,852
  56,184
  59,652
  63,264
  67,028
  70,952
  75,046
  79,317
EBITDA, $m
  6,420
  7,590
  8,874
  10,268
  11,772
  13,383
  15,097
  16,914
  18,829
  20,843
  22,954
  25,160
  27,463
  29,862
  32,360
  34,957
  37,657
  40,463
  43,379
  46,409
  49,559
  52,834
  56,241
  59,786
  63,476
  67,320
  71,325
  75,501
  79,857
  84,403
Interest expense (income), $m
  83
  215
  466
  745
  1,050
  1,381
  1,739
  2,122
  2,530
  2,961
  3,417
  3,896
  4,398
  4,922
  5,470
  6,040
  6,634
  7,251
  7,893
  8,561
  9,254
  9,974
  10,723
  11,502
  12,312
  13,155
  14,032
  14,946
  15,898
  16,891
  17,927
Earnings before tax, $m
  4,557
  5,405
  6,333
  7,338
  8,420
  9,576
  10,804
  12,103
  13,472
  14,909
  17,675
  19,247
  20,886
  22,593
  24,370
  26,217
  28,137
  30,132
  32,205
  34,359
  36,599
  38,928
  41,350
  43,872
  46,497
  49,232
  52,082
  55,054
  58,154
  61,391
Tax expense, $m
  1,230
  1,459
  1,710
  1,981
  2,273
  2,585
  2,917
  3,268
  3,637
  4,025
  4,772
  5,197
  5,639
  6,100
  6,580
  7,079
  7,597
  8,136
  8,695
  9,277
  9,882
  10,511
  11,165
  11,845
  12,554
  13,293
  14,062
  14,865
  15,702
  16,575
Net income, $m
  3,326
  3,946
  4,623
  5,357
  6,146
  6,990
  7,887
  8,835
  9,835
  10,884
  12,903
  14,050
  15,247
  16,493
  17,790
  19,138
  20,540
  21,996
  23,510
  25,082
  26,717
  28,417
  30,186
  32,026
  33,943
  35,939
  38,020
  40,189
  42,453
  44,815

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  41,940
  49,585
  57,969
  67,079
  76,903
  87,423
  98,624
  110,489
  123,006
  136,161
  149,948
  164,363
  179,405
  195,078
  211,393
  228,360
  245,999
  264,329
  283,378
  303,174
  323,751
  345,146
  367,400
  390,556
  414,664
  439,773
  465,938
  493,218
  521,673
  551,369
Adjusted assets (=assets-cash), $m
  41,940
  49,585
  57,969
  67,079
  76,903
  87,423
  98,624
  110,489
  123,006
  136,161
  149,948
  164,363
  179,405
  195,078
  211,393
  228,360
  245,999
  264,329
  283,378
  303,174
  323,751
  345,146
  367,400
  390,556
  414,664
  439,773
  465,938
  493,218
  521,673
  551,369
Revenue / Adjusted assets
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
  0.884
Average production assets, $m
  11,604
  13,720
  16,039
  18,560
  21,278
  24,189
  27,288
  30,572
  34,035
  37,675
  41,489
  45,478
  49,640
  53,977
  58,491
  63,185
  68,066
  73,138
  78,408
  83,886
  89,579
  95,499
  101,657
  108,064
  114,734
  121,682
  128,921
  136,470
  144,343
  152,559
Working capital, $m
  2,706
  3,200
  3,741
  4,329
  4,963
  5,642
  6,364
  7,130
  7,938
  8,787
  9,676
  10,607
  11,577
  12,589
  13,642
  14,737
  15,875
  17,058
  18,287
  19,564
  20,892
  22,273
  23,709
  25,203
  26,759
  28,379
  30,068
  31,828
  33,665
  35,581
Total debt, $m
  8,638
  13,791
  19,442
  25,582
  32,203
  39,294
  46,844
  54,841
  63,277
  72,144
  81,436
  91,151
  101,290
  111,854
  122,850
  134,286
  146,174
  158,529
  171,368
  184,710
  198,579
  212,999
  227,998
  243,606
  259,854
  276,778
  294,413
  312,800
  331,979
  351,994
Total liabilities, $m
  28,267
  33,420
  39,071
  45,211
  51,832
  58,923
  66,473
  74,470
  82,906
  91,773
  101,065
  110,780
  120,919
  131,483
  142,479
  153,915
  165,803
  178,158
  190,997
  204,339
  218,208
  232,628
  247,627
  263,235
  279,483
  296,407
  314,042
  332,429
  351,608
  371,623
Total equity, $m
  13,672
  16,165
  18,898
  21,868
  25,070
  28,500
  32,151
  36,020
  40,100
  44,389
  48,883
  53,582
  58,486
  63,596
  68,914
  74,445
  80,196
  86,171
  92,381
  98,835
  105,543
  112,518
  119,772
  127,321
  135,180
  143,366
  151,896
  160,789
  170,066
  179,746
Total liabilities and equity, $m
  41,939
  49,585
  57,969
  67,079
  76,902
  87,423
  98,624
  110,490
  123,006
  136,162
  149,948
  164,362
  179,405
  195,079
  211,393
  228,360
  245,999
  264,329
  283,378
  303,174
  323,751
  345,146
  367,399
  390,556
  414,663
  439,773
  465,938
  493,218
  521,674
  551,369
Debt-to-equity ratio
  0.630
  0.850
  1.030
  1.170
  1.280
  1.380
  1.460
  1.520
  1.580
  1.630
  1.670
  1.700
  1.730
  1.760
  1.780
  1.800
  1.820
  1.840
  1.860
  1.870
  1.880
  1.890
  1.900
  1.910
  1.920
  1.930
  1.940
  1.950
  1.950
  1.960
Adjusted equity ratio
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,326
  3,946
  4,623
  5,357
  6,146
  6,990
  7,887
  8,835
  9,835
  10,884
  12,903
  14,050
  15,247
  16,493
  17,790
  19,138
  20,540
  21,996
  23,510
  25,082
  26,717
  28,417
  30,186
  32,026
  33,943
  35,939
  38,020
  40,189
  42,453
  44,815
Depreciation, amort., depletion, $m
  1,648
  1,719
  1,796
  1,880
  1,971
  2,068
  2,171
  2,281
  2,396
  2,517
  1,383
  1,516
  1,655
  1,799
  1,950
  2,106
  2,269
  2,438
  2,614
  2,796
  2,986
  3,183
  3,389
  3,602
  3,824
  4,056
  4,297
  4,549
  4,811
  5,085
Funds from operations, $m
  4,975
  5,665
  6,419
  7,237
  8,117
  9,058
  10,058
  11,116
  12,231
  13,401
  14,286
  15,566
  16,902
  18,292
  19,740
  21,245
  22,809
  24,434
  26,123
  27,879
  29,703
  31,601
  33,574
  35,628
  37,767
  39,995
  42,317
  44,738
  47,264
  49,900
Change in working capital, $m
  445
  493
  541
  588
  634
  679
  723
  766
  808
  849
  890
  930
  971
  1,011
  1,053
  1,095
  1,138
  1,183
  1,229
  1,277
  1,328
  1,381
  1,436
  1,494
  1,556
  1,620
  1,689
  1,760
  1,836
  1,916
Cash from operations, $m
  4,529
  5,171
  5,878
  6,649
  7,483
  8,379
  9,335
  10,350
  11,423
  12,552
  13,396
  14,636
  15,931
  17,281
  18,687
  20,150
  21,670
  23,251
  24,894
  26,601
  28,375
  30,220
  32,138
  34,134
  36,211
  38,375
  40,629
  42,978
  45,428
  47,984
Maintenance CAPEX, $m
  -323
  -387
  -457
  -535
  -619
  -709
  -806
  -910
  -1,019
  -1,134
  -1,256
  -1,383
  -1,516
  -1,655
  -1,799
  -1,950
  -2,106
  -2,269
  -2,438
  -2,614
  -2,796
  -2,986
  -3,183
  -3,389
  -3,602
  -3,824
  -4,056
  -4,297
  -4,549
  -4,811
New CAPEX, $m
  -1,923
  -2,115
  -2,320
  -2,521
  -2,718
  -2,911
  -3,099
  -3,283
  -3,463
  -3,640
  -3,815
  -3,988
  -4,162
  -4,337
  -4,514
  -4,695
  -4,880
  -5,072
  -5,271
  -5,477
  -5,693
  -5,920
  -6,157
  -6,407
  -6,670
  -6,948
  -7,240
  -7,548
  -7,873
  -8,217
Cash from investing activities, $m
  -2,246
  -2,502
  -2,777
  -3,056
  -3,337
  -3,620
  -3,905
  -4,193
  -4,482
  -4,774
  -5,071
  -5,371
  -5,678
  -5,992
  -6,313
  -6,645
  -6,986
  -7,341
  -7,709
  -8,091
  -8,489
  -8,906
  -9,340
  -9,796
  -10,272
  -10,772
  -11,296
  -11,845
  -12,422
  -13,028
Free cash flow, $m
  2,284
  2,669
  3,101
  3,594
  4,147
  4,759
  5,430
  6,158
  6,941
  7,777
  8,325
  9,265
  10,253
  11,289
  12,374
  13,505
  14,684
  15,910
  17,185
  18,510
  19,886
  21,314
  22,798
  24,338
  25,939
  27,603
  29,333
  31,132
  33,005
  34,956
Issuance/(repayment) of debt, $m
  4,656
  5,153
  5,650
  6,140
  6,621
  7,091
  7,549
  7,997
  8,436
  8,867
  9,292
  9,715
  10,138
  10,564
  10,996
  11,436
  11,888
  12,355
  12,839
  13,343
  13,869
  14,420
  14,999
  15,608
  16,248
  16,924
  17,636
  18,387
  19,179
  20,015
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  4,656
  5,153
  5,650
  6,140
  6,621
  7,091
  7,549
  7,997
  8,436
  8,867
  9,292
  9,715
  10,138
  10,564
  10,996
  11,436
  11,888
  12,355
  12,839
  13,343
  13,869
  14,420
  14,999
  15,608
  16,248
  16,924
  17,636
  18,387
  19,179
  20,015
Total cash flow (excl. dividends), $m
  6,940
  7,822
  8,752
  9,734
  10,768
  11,850
  12,979
  14,155
  15,377
  16,644
  17,618
  18,980
  20,391
  21,854
  23,369
  24,941
  26,572
  28,265
  30,024
  31,853
  33,755
  35,734
  37,797
  39,946
  42,187
  44,526
  46,968
  49,519
  52,184
  54,971
Retained Cash Flow (-), $m
  -2,237
  -2,492
  -2,733
  -2,970
  -3,202
  -3,430
  -3,651
  -3,868
  -4,080
  -4,289
  -4,495
  -4,699
  -4,904
  -5,110
  -5,318
  -5,531
  -5,750
  -5,976
  -6,210
  -6,454
  -6,708
  -6,975
  -7,255
  -7,549
  -7,859
  -8,186
  -8,530
  -8,893
  -9,276
  -9,681
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  4,703
  5,330
  6,019
  6,764
  7,565
  8,420
  9,328
  10,287
  11,296
  12,356
  13,123
  14,281
  15,488
  16,744
  18,051
  19,410
  20,822
  22,289
  23,814
  25,399
  27,046
  28,760
  30,542
  32,397
  34,328
  36,341
  38,438
  40,626
  42,908
  45,290
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  4,509
  4,879
  5,238
  5,570
  5,864
  6,111
  6,302
  6,430
  6,489
  6,478
  6,232
  6,094
  5,889
  5,621
  5,299
  4,932
  4,531
  4,105
  3,667
  3,227
  2,797
  2,386
  2,002
  1,650
  1,335
  1,060
  825
  629
  468
  341
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair. It operates through four business groups: Aerospace, Combat Systems, Information Systems and Technology, and Marine Systems. Its Aerospace group offers aircraft design; cockpit and cabin systems, and product service and support. Its Combat Systems group offers combat vehicles, weapons systems and munitions. The Information Systems and Technology group provides technologies, products and services in support of various programs. The Marine Systems group is a designer and builder of nuclear-powered submarines, surface combatants and auxiliary and combat-logistics ships.

FINANCIAL RATIOS  of  General Dynamics (GD)

Valuation Ratios
P/E Ratio 19.7
Price to Sales 1.9
Price to Book 5.6
Price to Tangible Book
Price to Cash Flow 27.1
Price to Free Cash Flow 33.2
Growth Rates
Sales Growth Rate -0.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -31.1%
Cap. Spend. - 3 Yr. Gr. Rate -2.1%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 29%
Total Debt to Equity 37.7%
Interest Coverage 52
Management Effectiveness
Return On Assets 9.3%
Ret/ On Assets - 3 Yr. Avg. 8.5%
Return On Total Capital 20.9%
Ret/ On T. Cap. - 3 Yr. Avg. 18.5%
Return On Equity 28.1%
Return On Equity - 3 Yr. Avg. 24.5%
Asset Turnover 1
Profitability Ratios
Gross Margin 19.9%
Gross Margin - 3 Yr. Avg. 19.5%
EBITDA Margin 15.2%
EBITDA Margin - 3 Yr. Avg. 14.8%
Operating Margin 13.7%
Oper. Margin - 3 Yr. Avg. 13.2%
Pre-Tax Margin 13.5%
Pre-Tax Margin - 3 Yr. Avg. 13%
Net Profit Margin 9.4%
Net Profit Margin - 3 Yr. Avg. 9%
Effective Tax Rate 27.6%
Eff/ Tax Rate - 3 Yr. Avg. 28.3%
Payout Ratio 30.8%

GD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GD stock intrinsic value calculation we used $30973 million for the last fiscal year's total revenue generated by General Dynamics. The default revenue input number comes from 0001 income statement of General Dynamics. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our GD stock valuation model: a) initial revenue growth rate of 19.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for GD is calculated based on our internal credit rating of General Dynamics, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of General Dynamics.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of GD stock the variable cost ratio is equal to 87.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for GD stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for General Dynamics.

Corporate tax rate of 27% is the nominal tax rate for General Dynamics. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the GD stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for GD are equal to 31.3%.

Life of production assets of 36 years is the average useful life of capital assets used in General Dynamics operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for GD is equal to 7.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $11435 million for General Dynamics - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 296.281 million for General Dynamics is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of General Dynamics at the current share price and the inputted number of shares is $57.1 billion.

RELATED COMPANIES Price Int.Val. Rating
NOC Northrop Grumm 305.60 544.75  str.buy
LMT Lockheed Marti 331.24 112.63  str.sell
KTOS Kratos Defense 13.52 2.73  str.sell
HRS Harris Corp. 173.25 107.02  sell
LLL L3 Technologie 220.91 259.41  buy
BA Boeing 358.88 146.32  str.sell
ESLT Elbit Systems 117.58 99.71  hold

COMPANY NEWS

▶ L3, Harris to merge in deal creating sixth prime defense giant   [Oct-14-18 09:44PM  American City Business Journals]
▶ Maximus inks deal to acquire GDIT's call center business   [Oct-09-18 02:32PM  American City Business Journals]
▶ Ex-GDIT exec lands at ManTech   [02:59PM  American City Business Journals]
▶ General Dynamics Delivers Submarine South Dakota   [Sep-26-18 10:00AM  PR Newswire]
▶ These 8 local defense contractors just received millions from the government   [Sep-24-18 02:33PM  American City Business Journals]
▶ Exclusive: GDIT executive team loses defense, intel leads   [Sep-14-18 02:49PM  American City Business Journals]
▶ Why the timing is right for SAIC's $2.5B deal to acquire Engility   [02:10PM  American City Business Journals]
▶ Perspecta lands $787 million Navy contract extension   [Sep-06-18 02:13PM  American City Business Journals]
▶ [$$] Nordam and Gulfstream Reach Deal on Business Jet Parts Dispute   [Sep-04-18 04:33PM  The Wall Street Journal]
▶ Our 5 Best Stocks to Invest In for a Wild September   [Aug-30-18 11:33AM  InvestorPlace]
▶ CACI sees General Dynamics acquisition enhancing long history of U.S. Navy work   [Aug-16-18 02:43PM  American City Business Journals]
▶ For Perspecta, the stakes are high for a huge Navy contract recompete   [Aug-15-18 05:43PM  American City Business Journals]
▶ How Spirit AeroSystems pay compares to other public aerospace companies   [Aug-14-18 03:23PM  American City Business Journals]
▶ Correction: PepsiCo-CEO-Women-Glance story   [Aug-07-18 06:57PM  Associated Press]
▶ SwRI gets slice of a $794M U.S. Navy contract   [Aug-03-18 03:22PM  American City Business Journals]
▶ An Investor's Primer on the Defense Sector   [Aug-02-18 04:50PM  Motley Fool]
▶ General Dynamics Board Declares Dividend   [04:40PM  PR Newswire]
▶ Booz Allen Hamilton expands San Antonio offices, hiring   [Jul-31-18 12:24PM  American City Business Journals]
▶ Why one analyst sees cause for concern over the GDIT-CSRA merger   [Jul-26-18 05:00AM  American City Business Journals]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.