BAE Systems PLC
LSE:BA
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EV/EBIT
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.
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.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (18.8), the stock would be worth GBX1 565.49 (26% downside from current price).
| 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%
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| 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
|
= |
|
|
GBX73.8B
|
/ |
Dec 2026
£3.7B
|
= |
|
|
GBX73.8B
|
/ |
Dec 2027
£4.1B
|
= |
|
|
GBX73.8B
|
/ |
Dec 2028
£4.5B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| 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 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0.1 |
| Max | 1 015 |
Other Multiples
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.