Latest Ratios: P/E Ratio 24.2x · EV/EBITDA 18.0x · ROE 17.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $101.3B | $92.2B | $73.1B | $71.6B | $69.0B | $58.8B | $42.8B | $51.3B | $47.0B | $62.0B | $53.6B |
| Enterprise Value | $108.8B | $99.7B | $82.1B | $80.8B | $79.9B | $70.4B | $54.8B | $63.8B | $58.5B | $63.0B | $55.1B |
| P/E Ratio → | 24.23 | 21.78 | 19.33 | 21.60 | 20.35 | 18.05 | 13.53 | 14.72 | 14.06 | 21.28 | 20.83 |
| P/S Ratio | 1.93 | 1.75 | 1.53 | 1.69 | 1.75 | 1.53 | 1.13 | 1.30 | 1.30 | 2.00 | 1.75 |
| P/B Ratio | 4.00 | 3.60 | 3.31 | 3.36 | 3.72 | 3.33 | 2.74 | 3.78 | 4.01 | 5.42 | 4.88 |
| P/FCF | 25.59 | 23.29 | 22.88 | 18.81 | 19.92 | 17.37 | 14.82 | 25.72 | 19.14 | 17.96 | 29.68 |
| P/OCF | 19.79 | 18.01 | 17.78 | 15.20 | 15.07 | 13.77 | 11.11 | 17.21 | 14.94 | 15.98 | 24.38 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.90 | 1.72 | 1.91 | 2.03 | 1.83 | 1.44 | 1.62 | 1.62 | 2.03 | 1.80 |
| EV / EBITDA | 18.02 | 16.51 | 14.45 | 15.81 | 15.68 | 13.93 | 10.93 | 11.82 | 11.34 | 13.46 | 13.14 |
| EV / EBIT | 20.31 | 18.40 | 16.64 | 18.43 | 18.05 | 16.35 | 12.95 | 13.65 | 13.12 | 15.01 | 14.69 |
| EV / FCF | — | 25.17 | 25.69 | 21.22 | 23.06 | 20.79 | 18.94 | 32.01 | 23.80 | 18.25 | 30.54 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.1% | 15.1% | 15.4% | 15.8% | 16.8% | 16.7% | 16.7% | 17.8% | 18.4% | 20.2% | 18.5% |
| Operating Margin | 10.2% | 10.2% | 10.1% | 10.0% | 10.7% | 10.8% | 10.9% | 11.6% | 12.1% | 13.7% | 12.3% |
| Net Profit Margin | 8.0% | 8.0% | 7.9% | 7.8% | 8.6% | 8.5% | 8.4% | 8.9% | 9.2% | 9.4% | 8.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.7% | 17.7% | 17.4% | 16.6% | 18.7% | 19.6% | 21.7% | 27.5% | 28.9% | 26.0% | 23.7% |
| ROA | 7.4% | 7.4% | 6.8% | 6.2% | 6.7% | 6.4% | 6.3% | 7.4% | 8.3% | 8.6% | 7.9% |
| ROIC | 12.5% | 12.5% | 11.7% | 10.6% | 10.8% | 11.0% | 11.5% | 13.9% | 18.5% | 25.5% | 23.5% |
| ROCE | 13.6% | 13.6% | 12.5% | 11.4% | 11.6% | 11.7% | 12.3% | 14.6% | 16.7% | 20.2% | 18.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.38 | 0.38 | 0.48 | 0.52 | 0.65 | 0.75 | 0.94 | 0.99 | 1.06 | 0.35 | 0.35 |
| Debt / EBITDA | 1.62 | 1.62 | 1.88 | 2.17 | 2.38 | 2.61 | 2.94 | 2.49 | 2.41 | 0.85 | 0.93 |
| Net Debt / Equity | — | 0.29 | 0.41 | 0.43 | 0.59 | 0.66 | 0.76 | 0.92 | 0.98 | 0.09 | 0.14 |
| Net Debt / EBITDA | 1.24 | 1.24 | 1.58 | 1.80 | 2.13 | 2.29 | 2.38 | 2.32 | 2.22 | 0.21 | 0.37 |
| Debt / FCF | — | 1.88 | 2.81 | 2.41 | 3.14 | 3.42 | 4.12 | 6.28 | 4.66 | 0.29 | 0.86 |
| Interest Coverage | 17.25 | 17.25 | 12.55 | 10.98 | 11.32 | 9.99 | 8.64 | 9.90 | 11.92 | 35.85 | 37.93 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.37 | 1.44 | 1.37 | 1.43 | 1.35 | 1.21 | 1.23 | 1.40 | 1.20 |
| Quick Ratio | 0.89 | 0.89 | 0.82 | 0.92 | 0.96 | 1.05 | 0.99 | 0.83 | 0.83 | 0.99 | 0.52 |
| Cash Ratio | 0.14 | 0.14 | 0.10 | 0.12 | 0.08 | 0.11 | 0.18 | 0.05 | 0.07 | 0.23 | 0.18 |
| Asset Turnover | — | 0.92 | 0.85 | 0.77 | 0.76 | 0.77 | 0.74 | 0.81 | 0.80 | 0.89 | 0.93 |
| Inventory Turnover | 4.83 | 4.83 | 4.15 | 4.15 | 5.19 | 6.00 | 5.50 | 5.13 | 4.94 | 4.66 | 2.83 |
| Days Sales Outstanding | — | 74.92 | 85.86 | 94.99 | 109.32 | 109.48 | 107.65 | 105.75 | 104.23 | 104.37 | 90.90 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 1.7% | 2.1% | 2.0% | 2.0% | 2.2% | 2.9% | 2.2% | 2.3% | 1.6% | 1.7% |
| Payout Ratio | 37.8% | 37.8% | 40.4% | 43.1% | 40.4% | 40.4% | 39.2% | 33.1% | 32.1% | 33.9% | 35.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.6% | 5.2% | 4.6% | 4.9% | 5.5% | 7.4% | 6.8% | 7.1% | 4.7% | 4.8% |
| FCF Yield | 3.9% | 4.3% | 4.4% | 5.3% | 5.0% | 5.8% | 6.7% | 3.9% | 5.2% | 5.6% | 3.4% |
| Buyback Yield | 0.6% | 0.7% | 2.1% | 0.6% | 1.8% | 3.1% | 1.4% | 0.5% | 3.8% | 2.5% | 3.7% |
| Total Shareholder Yield | 2.2% | 2.4% | 4.1% | 2.6% | 3.8% | 5.3% | 4.3% | 2.7% | 6.0% | 4.1% | 5.4% |
| Shares Outstanding | — | $274M | $277M | $276M | $278M | $282M | $288M | $291M | $299M | $305M | $310M |
Submarine production labor constraints
Based on current market data, General Dynamics trades at a forward P/E of 20.77, which appears to price in a successful ramp-up of the G700/G800 aircraft programs and sustained defense spending, though this valuation sits at a premium relative to historical averages for the industrial sector.
The current P/FCF of 23.68 suggests that investors are willing to pay a significant multiple for the company's long-term cash flow visibility, despite the inherent lumpiness of defense contract milestones. This valuation implies that the market expects margin expansion as the Aerospace segment transitions from heavy R&D investment to high-margin delivery phases.
According to reported financial data, ROIC has remained compressed between 2.5% and 3.4% over the last ten quarters, suggesting that the massive capital requirements for nuclear-certified shipbuilding and aerospace infrastructure are currently outpacing the incremental returns generated by these long-cycle, project-based defense and business jet programs.
The low ROIC relative to peers like Lockheed Martin indicates that General Dynamics is currently in a heavy investment cycle that suppresses short-term returns. Investors should monitor whether the completion of the Columbia-class submarine infrastructure allows for a meaningful inflection in capital efficiency as the asset base matures.
As reported in recent quarterly filings, the cash conversion cycle has fluctuated significantly, peaking at 156 days in 2024Q1 and settling at 132 days in 2026Q1, which highlights the structural difficulty of managing inventory and receivables across diverse, long-lead-time defense and aerospace manufacturing segments.
The high DIO and DSO figures suggest that the company carries substantial inventory and unbilled receivables, which is typical for government-contracted work but creates persistent pressure on liquidity. The inability to consistently compress this cycle indicates that working capital management remains a primary operational challenge for the firm.
Based on the provided balance sheet figures, General Dynamics has successfully reduced its debt-to-equity ratio to 0.31 as of 2026Q1, demonstrating a disciplined approach to capital structure that provides a significant buffer against the volatility inherent in its large-scale, multi-year defense and aerospace project commitments.
With interest coverage ratios consistently remaining in the double digits, the company appears to face minimal refinancing risk in the near term. This conservative stance suggests management prioritizes balance sheet strength to navigate potential delays in government appropriations or unexpected shifts in the business jet market.
The P/E ratio is frequently misapplied to General Dynamics, as it obscures the impact of non-cash accounting adjustments and the lumpy nature of milestone-based revenue recognition inherent in the company's long-cycle defense contracts, which can lead to distorted perceptions of the firm's true underlying earnings power.
Analysts should instead focus on FCF yield and backlog conversion metrics, as these provide a more accurate reflection of the company's ability to generate cash from its massive, multi-year project pipeline. Relying solely on P/E risks misinterpreting temporary earnings volatility as a structural change in the business model.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GD stock.
General Dynamics Corporation's current P/E ratio is 24.2x. The historical average is 16.4x. This places it at the 100th percentile of its historical range.
General Dynamics Corporation's current EV/EBITDA is 18.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
General Dynamics Corporation's return on equity (ROE) is 17.7%. The historical average is 21.1%.
Based on historical data, General Dynamics Corporation is trading at a P/E of 24.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
General Dynamics Corporation's current dividend yield is 1.55% with a payout ratio of 37.8%.
General Dynamics Corporation has 15.1% gross margin and 10.2% operating margin. Operating margin between 10-20% is typical for established companies.
General Dynamics Corporation's Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.