Intrinsic value of General Dynamics - GD

Previous Close

$195.28

  Intrinsic Value

$162.31

stock screener

  Rating & Target

hold

-17%

Previous close

$195.28

 
Intrinsic value

$162.31

 
Up/down potential

-17%

 
Rating

hold

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 2017), $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 58.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  31,592
  32,319
  33,150
  34,082
  35,115
  36,249
  37,484
  38,820
  40,260
  41,805
  43,458
  45,221
  47,099
  49,095
  51,213
  53,457
  55,833
  58,345
  61,000
  63,803
  66,760
  69,879
  73,166
  76,630
  80,278
  84,119
  88,162
  92,417
  96,892
  101,600
Variable operating expenses, $m
  27,713
  28,321
  29,017
  29,798
  30,663
  31,612
  32,645
  33,764
  34,970
  36,263
  36,386
  37,862
  39,435
  41,106
  42,879
  44,758
  46,747
  48,851
  51,073
  53,420
  55,896
  58,507
  61,260
  64,160
  67,215
  70,430
  73,815
  77,378
  81,125
  85,067
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
  27,713
  28,321
  29,017
  29,798
  30,663
  31,612
  32,645
  33,764
  34,970
  36,263
  36,386
  37,862
  39,435
  41,106
  42,879
  44,758
  46,747
  48,851
  51,073
  53,420
  55,896
  58,507
  61,260
  64,160
  67,215
  70,430
  73,815
  77,378
  81,125
  85,067
Operating income, $m
  3,880
  3,998
  4,133
  4,285
  4,453
  4,637
  4,838
  5,056
  5,290
  5,541
  7,072
  7,359
  7,665
  7,989
  8,334
  8,699
  9,086
  9,495
  9,927
  10,383
  10,864
  11,372
  11,907
  12,470
  13,064
  13,689
  14,347
  15,039
  15,768
  16,534
EBITDA, $m
  6,759
  6,914
  7,092
  7,291
  7,512
  7,755
  8,019
  8,305
  8,613
  8,943
  9,297
  9,674
  10,076
  10,503
  10,956
  11,436
  11,944
  12,482
  13,050
  13,649
  14,282
  14,949
  15,653
  16,394
  17,174
  17,996
  18,861
  19,771
  20,728
  21,736
Interest expense (income), $m
  83
  215
  241
  271
  305
  343
  386
  432
  483
  538
  598
  661
  729
  802
  879
  961
  1,049
  1,141
  1,239
  1,342
  1,452
  1,567
  1,689
  1,817
  1,952
  2,095
  2,245
  2,403
  2,570
  2,745
  2,929
Earnings before tax, $m
  3,664
  3,757
  3,862
  3,980
  4,110
  4,252
  4,406
  4,572
  4,752
  4,944
  6,411
  6,630
  6,863
  7,110
  7,373
  7,651
  7,945
  8,256
  8,584
  8,931
  9,297
  9,683
  10,089
  10,518
  10,969
  11,444
  11,943
  12,469
  13,023
  13,604
Tax expense, $m
  989
  1,014
  1,043
  1,075
  1,110
  1,148
  1,190
  1,235
  1,283
  1,335
  1,731
  1,790
  1,853
  1,920
  1,991
  2,066
  2,145
  2,229
  2,318
  2,411
  2,510
  2,614
  2,724
  2,840
  2,962
  3,090
  3,225
  3,367
  3,516
  3,673
Net income, $m
  2,675
  2,743
  2,819
  2,905
  3,000
  3,104
  3,216
  3,338
  3,469
  3,609
  4,680
  4,840
  5,010
  5,190
  5,382
  5,585
  5,800
  6,027
  6,267
  6,520
  6,787
  7,069
  7,365
  7,678
  8,007
  8,354
  8,719
  9,103
  9,506
  9,931

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
  35,738
  36,560
  37,500
  38,555
  39,723
  41,006
  42,402
  43,914
  45,543
  47,290
  49,160
  51,156
  53,280
  55,538
  57,933
  60,472
  63,160
  66,002
  69,004
  72,175
  75,521
  79,049
  82,768
  86,686
  90,813
  95,158
  99,731
  104,544
  109,607
  114,932
Adjusted assets (=assets-cash), $m
  35,738
  36,560
  37,500
  38,555
  39,723
  41,006
  42,402
  43,914
  45,543
  47,290
  49,160
  51,156
  53,280
  55,538
  57,933
  60,472
  63,160
  66,002
  69,004
  72,175
  75,521
  79,049
  82,768
  86,686
  90,813
  95,158
  99,731
  104,544
  109,607
  114,932
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
  16,175
  16,547
  16,973
  17,450
  17,979
  18,560
  19,192
  19,876
  20,613
  21,404
  22,250
  23,153
  24,115
  25,137
  26,221
  27,370
  28,587
  29,873
  31,232
  32,667
  34,181
  35,778
  37,461
  39,235
  41,103
  43,069
  45,139
  47,317
  49,609
  52,019
Working capital, $m
  2,148
  2,198
  2,254
  2,318
  2,388
  2,465
  2,549
  2,640
  2,738
  2,843
  2,955
  3,075
  3,203
  3,338
  3,482
  3,635
  3,797
  3,967
  4,148
  4,339
  4,540
  4,752
  4,975
  5,211
  5,459
  5,720
  5,995
  6,284
  6,589
  6,909
Total debt, $m
  4,458
  5,012
  5,646
  6,357
  7,145
  8,009
  8,950
  9,969
  11,067
  12,245
  13,505
  14,850
  16,282
  17,803
  19,418
  21,129
  22,941
  24,856
  26,880
  29,017
  31,272
  33,650
  36,156
  38,797
  41,579
  44,507
  47,590
  50,833
  54,246
  57,835
Total liabilities, $m
  24,087
  24,641
  25,275
  25,986
  26,774
  27,638
  28,579
  29,598
  30,696
  31,874
  33,134
  34,479
  35,911
  37,432
  39,047
  40,758
  42,570
  44,485
  46,509
  48,646
  50,901
  53,279
  55,785
  58,426
  61,208
  64,136
  67,219
  70,462
  73,875
  77,464
Total equity, $m
  11,651
  11,919
  12,225
  12,569
  12,950
  13,368
  13,823
  14,316
  14,847
  15,417
  16,026
  16,677
  17,369
  18,105
  18,886
  19,714
  20,590
  21,517
  22,495
  23,529
  24,620
  25,770
  26,982
  28,260
  29,605
  31,021
  32,512
  34,081
  35,732
  37,468
Total liabilities and equity, $m
  35,738
  36,560
  37,500
  38,555
  39,724
  41,006
  42,402
  43,914
  45,543
  47,291
  49,160
  51,156
  53,280
  55,537
  57,933
  60,472
  63,160
  66,002
  69,004
  72,175
  75,521
  79,049
  82,767
  86,686
  90,813
  95,157
  99,731
  104,543
  109,607
  114,932
Debt-to-equity ratio
  0.380
  0.420
  0.460
  0.510
  0.550
  0.600
  0.650
  0.700
  0.750
  0.790
  0.840
  0.890
  0.940
  0.980
  1.030
  1.070
  1.110
  1.160
  1.190
  1.230
  1.270
  1.310
  1.340
  1.370
  1.400
  1.430
  1.460
  1.490
  1.520
  1.540
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
  2,675
  2,743
  2,819
  2,905
  3,000
  3,104
  3,216
  3,338
  3,469
  3,609
  4,680
  4,840
  5,010
  5,190
  5,382
  5,585
  5,800
  6,027
  6,267
  6,520
  6,787
  7,069
  7,365
  7,678
  8,007
  8,354
  8,719
  9,103
  9,506
  9,931
Depreciation, amort., depletion, $m
  2,879
  2,916
  2,959
  3,007
  3,060
  3,118
  3,181
  3,249
  3,323
  3,402
  2,225
  2,315
  2,411
  2,514
  2,622
  2,737
  2,859
  2,987
  3,123
  3,267
  3,418
  3,578
  3,746
  3,923
  4,110
  4,307
  4,514
  4,732
  4,961
  5,202
Funds from operations, $m
  5,554
  5,659
  5,778
  5,912
  6,059
  6,221
  6,397
  6,587
  6,792
  7,011
  6,905
  7,155
  7,421
  7,704
  8,004
  8,322
  8,658
  9,014
  9,390
  9,787
  10,205
  10,646
  11,111
  11,601
  12,118
  12,661
  13,233
  13,834
  14,467
  15,133
Change in working capital, $m
  42
  49
  56
  63
  70
  77
  84
  91
  98
  105
  112
  120
  128
  136
  144
  153
  162
  171
  181
  191
  201
  212
  224
  236
  248
  261
  275
  289
  304
  320
Cash from operations, $m
  5,512
  5,610
  5,722
  5,848
  5,989
  6,144
  6,313
  6,496
  6,694
  6,906
  6,792
  7,035
  7,294
  7,568
  7,860
  8,169
  8,497
  8,843
  9,209
  9,596
  10,004
  10,434
  10,888
  11,366
  11,869
  12,400
  12,958
  13,545
  14,163
  14,813
Maintenance CAPEX, $m
  -1,587
  -1,618
  -1,655
  -1,697
  -1,745
  -1,798
  -1,856
  -1,919
  -1,988
  -2,061
  -2,140
  -2,225
  -2,315
  -2,411
  -2,514
  -2,622
  -2,737
  -2,859
  -2,987
  -3,123
  -3,267
  -3,418
  -3,578
  -3,746
  -3,923
  -4,110
  -4,307
  -4,514
  -4,732
  -4,961
New CAPEX, $m
  -309
  -372
  -425
  -477
  -529
  -580
  -632
  -684
  -737
  -791
  -846
  -903
  -961
  -1,022
  -1,084
  -1,149
  -1,216
  -1,286
  -1,359
  -1,435
  -1,514
  -1,597
  -1,683
  -1,773
  -1,868
  -1,967
  -2,070
  -2,178
  -2,292
  -2,410
Cash from investing activities, $m
  -1,896
  -1,990
  -2,080
  -2,174
  -2,274
  -2,378
  -2,488
  -2,603
  -2,725
  -2,852
  -2,986
  -3,128
  -3,276
  -3,433
  -3,598
  -3,771
  -3,953
  -4,145
  -4,346
  -4,558
  -4,781
  -5,015
  -5,261
  -5,519
  -5,791
  -6,077
  -6,377
  -6,692
  -7,024
  -7,371
Free cash flow, $m
  3,617
  3,620
  3,642
  3,674
  3,715
  3,766
  3,825
  3,893
  3,969
  4,054
  3,806
  3,907
  4,017
  4,135
  4,262
  4,398
  4,543
  4,698
  4,863
  5,038
  5,223
  5,419
  5,627
  5,846
  6,078
  6,323
  6,581
  6,853
  7,140
  7,442
Issuance/(repayment) of debt, $m
  476
  554
  633
  711
  788
  864
  941
  1,019
  1,098
  1,178
  1,260
  1,345
  1,432
  1,522
  1,615
  1,711
  1,811
  1,915
  2,024
  2,137
  2,255
  2,378
  2,507
  2,641
  2,781
  2,929
  3,082
  3,244
  3,412
  3,589
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  
  476
  554
  633
  711
  788
  864
  941
  1,019
  1,098
  1,178
  1,260
  1,345
  1,432
  1,522
  1,615
  1,711
  1,811
  1,915
  2,024
  2,137
  2,255
  2,378
  2,507
  2,641
  2,781
  2,929
  3,082
  3,244
  3,412
  3,589
Total cash flow (excl. dividends), $m
  4,093
  4,174
  4,275
  4,385
  4,503
  4,630
  4,766
  4,912
  5,067
  5,232
  5,066
  5,252
  5,449
  5,657
  5,877
  6,109
  6,355
  6,614
  6,887
  7,175
  7,478
  7,797
  8,133
  8,487
  8,860
  9,251
  9,663
  10,097
  10,552
  11,031
Retained Cash Flow (-), $m
  -216
  -268
  -306
  -344
  -381
  -418
  -455
  -493
  -531
  -570
  -610
  -650
  -693
  -736
  -781
  -828
  -876
  -926
  -979
  -1,034
  -1,091
  -1,150
  -1,212
  -1,277
  -1,345
  -1,416
  -1,491
  -1,569
  -1,651
  -1,736
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
  124
  126
  129
  133
  136
  140
  145
  150
  155
  161
  167
  174
  181
  188
  196
  205
  214
  223
  233
  244
  255
  267
  280
  293
  307
  321
  336
  353
  370
  388
Cash available for distribution, $m
  3,877
  3,906
  3,969
  4,041
  4,122
  4,212
  4,311
  4,419
  4,536
  4,662
  4,456
  4,601
  4,756
  4,921
  5,096
  5,282
  5,479
  5,687
  5,908
  6,141
  6,387
  6,647
  6,921
  7,210
  7,514
  7,835
  8,172
  8,528
  8,902
  9,295
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
  3,718
  3,576
  3,454
  3,327
  3,195
  3,057
  2,912
  2,762
  2,606
  2,444
  2,116
  1,964
  1,808
  1,652
  1,496
  1,342
  1,192
  1,047
  910
  780
  661
  552
  454
  367
  292
  229
  175
  132
  97
  70
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 19.9
Price to Sales 1.9
Price to Book 5.7
Price to Tangible Book
Price to Cash Flow 27.5
Price to Free Cash Flow 33.6
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 2017 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 2% 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 0.4%.

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 51.2%.

Life of production assets of 10 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 6.8%. 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 299 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 $58.4 billion.

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COMPANY NEWS

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▶ How government contractors are weathering a storm over Trumps immigration policy   [Jun-22-18 02:32PM  American City Business Journals]
▶ The GSA has prevailed in a court battle over this massive IT contract   [01:02PM  American City Business Journals]
▶ General Dynamics Board Declares Dividend   [Jun-06-18 04:46PM  PR Newswire]
▶ Exclusive: GDIT taps new chief growth officer   [Jun-04-18 06:00PM  American City Business Journals]
▶ Is General Dynamics Corporation (GD) a Buy?   [Jun-01-18 09:17AM  Motley Fool]
▶ For Booz Allen, attracting and retaining talent will drive growth more than M&A   [May-29-18 02:40PM  American City Business Journals]
▶ Defense Sector Gets Downgrade But Boeing Is Still A Winner   [May-22-18 04:22PM  Investor's Business Daily]
▶ Is General Dynamics Corporation (NYSE:GD) Undervalued?   [May-12-18 06:27PM  Simply Wall St.]
▶ What will Engility's private equity owners do next as lock-up period ends?   [May-09-18 03:00PM  American City Business Journals]
▶ This government contracting executives pay has jumped 67 percent in four years   [May-03-18 12:13PM  American City Business Journals]
▶ [$$] Submarine Maker Gets $83 Million Incentive From Connecticut   [May-01-18 11:59PM  The Wall Street Journal]
▶ Submarine Maker Gets $83 Million Incentive From Connecticut   [04:09PM  The Wall Street Journal]
▶ This government contracting executives pay has jumped 67 percent in four years   [Apr-30-18 08:53PM  American City Business Journals]
▶ Ex-CSRA executive lands at SAIC   [10:13AM  American City Business Journals]
▶ General Dynamics Hits an Air Pocket   [Apr-26-18 03:01PM  TheStreet.com]
▶ BAE Systems mulling office consolidation, HQ move   [02:41PM  American City Business Journals]
▶ Edwards Lifesciences, General Dynamics slip; Comcast rises   [Apr-25-18 04:43PM  Associated Press]
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