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BAE Systems PLC
LSE:BA

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BAE Systems PLC
LSE:BA
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Price: 2 113 GBX -1.49% Market Closed
Market Cap: £63.3B

EV/EBIT

25.4
Current
35%
More Expensive
vs 3-y average of 18.8

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
25.4
=
Enterprise Value
GBX73.8B
/
EBIT
£2.7B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
25.4
=
Enterprise Value
GBX73.8B
/
EBIT
£2.7B

Valuation Scenarios

BAE Systems PLC is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (18.8), the stock would be worth GBX1 565.49 (26% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
66%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 25.4 GBX2 113
0%
3-Year Average 18.8 GBX1 565.49
-26%
5-Year Average 15.3 GBX1 267.2
-40%
Industry Average 0 GBX0.87
-100%
Country Average 0 GBX2.44
-100%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
GBX73.8B
/
Jan 2026
£2.7B
=
25.4
Current
GBX73.8B
/
Dec 2026
£3.7B
=
19.9
Forward
GBX73.8B
/
Dec 2027
£4.1B
=
17.9
Forward
GBX73.8B
/
Dec 2028
£4.5B
=
16.4
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
UK
BAE Systems PLC
LSE:BA
63.4B GBP 25.4 30.8
US
Raytheon Technologies Corp
NYSE:RTX
242.6B USD 29.1 36
US
RTX Corp
LSE:0R2N
245.4B USD 29.3 36.4
US
Boeing Co
NYSE:BA
181.5B USD -36.5 96
NL
Airbus SE
PAR:AIR
130.9B EUR 21.7 25.1
FR
Safran SA
PAR:SAF
113.6B EUR 25 15.8
US
Lockheed Martin Corp
NYSE:LMT
127.2B USD 18.4 25.4
UK
Rolls-Royce Holdings PLC
LSE:RR
96.1B GBP 21 16.5
US
Howmet Aerospace Inc
NYSE:HWM
96.7B USD 46.3 64.2
US
General Dynamics Corp
NYSE:GD
86.7B USD 17.2 20.6
US
Northrop Grumman Corp
NYSE:NOC
83.7B USD 22 20
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
UK
BAE Systems PLC
LSE:BA
Average EV/EBIT: 25.5
25.4
19%
1.3
US
Raytheon Technologies Corp
NYSE:RTX
29.1
17%
1.7
US
RTX Corp
LSE:0R2N
29.3
17%
1.7
US
Boeing Co
NYSE:BA
Negative Multiple: -36.5 N/A N/A
NL
Airbus SE
PAR:AIR
21.7
25%
0.9
FR
Safran SA
PAR:SAF
25
20%
1.2
US
Lockheed Martin Corp
NYSE:LMT
18.4
11%
1.7
UK
Rolls-Royce Holdings PLC
LSE:RR
21
4%
5.2
US
Howmet Aerospace Inc
NYSE:HWM
46.3
17%
2.7
US
General Dynamics Corp
NYSE:GD
17.2
8%
2.1
US
Northrop Grumman Corp
NYSE:NOC
22
8%
2.7

Market Distribution

Higher than 96% of companies in United Kingdom
Percentile
96th
Based on 1 864 companies
96th percentile
25.4
Low
0 — 0
Typical Range
0 — 0.1
High
0.1 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0.1
Max 1 015

BAE Systems PLC
Glance View

In the realm of global defense and aerospace, BAE Systems PLC stands as a formidable player, seamlessly merging cutting-edge technology with strategic defense solutions. Headquartered in London, this colossal entity has woven itself into the fabric of international defense by providing an extensive portfolio of products and services. From high-tech military aircraft and naval vessels to advanced cybersecurity frameworks, BAE Systems addresses the multifaceted needs of nation-states and corporations alike. Its operations span the globe, harnessing a broad spectrum of engineering and technological expertise to create sophisticated defense mechanisms. The company's relentless focus on innovation ensures that its offerings are not just reactive, but proactive measures anticipating the ever-evolving nature of global security threats. BAE Systems derives its revenue predominantly from long-term contracts with government entities across the world, particularly the United States, United Kingdom, and Saudi Arabia. By fostering strategic partnerships and alliances, BAE leverages its comprehensive expertise in defense, aerospace, and cyber solutions. The company’s vast network also includes joint ventures that allow it to expand its capabilities and adapt to the dynamic demands of defense technology. Through these collaborative endeavors, it secures a continuous stream of income, balancing the precision of engineering with astute financial acumen. In essence, BAE Systems not only builds the hardware that protects nations but also curates a holistic ecosystem of defense strategies that translates into robust financial performance.

BA Intrinsic Value
1 378.92 GBX
Overvaluation 35%
Intrinsic Value
Price GBX2 113
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