Latest Ratios: P/E Ratio 18.8x · EV/EBITDA 16.2x · ROE 26.2%. (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 | $77.8B | $82.0B | $69.1B | $71.2B | $84.9B | $62.3B | $51.1B | $58.5B | $42.8B | $53.9B | $42.0B |
| Enterprise Value | $93.1B | $97.3B | $85.0B | $86.0B | $99.1B | $75.0B | $64.1B | $73.1B | $55.6B | $57.9B | $46.5B |
| P/E Ratio → | 18.84 | 19.61 | 16.56 | 34.60 | 17.34 | 8.89 | 16.01 | 26.02 | 13.24 | 26.76 | 19.08 |
| P/S Ratio | 1.85 | 1.95 | 1.68 | 1.81 | 2.32 | 1.75 | 1.39 | 1.73 | 1.42 | 2.09 | 1.71 |
| P/B Ratio | 4.72 | 4.92 | 4.52 | 4.81 | 5.54 | 4.82 | 4.83 | 6.63 | 5.22 | 7.65 | 7.98 |
| P/FCF | 23.53 | 24.79 | 26.37 | 33.88 | 57.91 | 28.94 | 17.70 | 19.28 | 16.59 | 31.98 | 22.18 |
| P/OCF | 16.35 | 17.24 | 15.75 | 18.36 | 29.26 | 17.46 | 11.86 | 13.61 | 11.17 | 20.63 | 14.92 |
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 | — | 2.32 | 2.07 | 2.19 | 2.71 | 2.10 | 1.74 | 2.16 | 1.85 | 2.25 | 1.90 |
| EV / EBITDA | 16.19 | 16.92 | 14.80 | 22.19 | 20.06 | 10.88 | 12.02 | 13.96 | 12.14 | 15.35 | 12.75 |
| EV / EBIT | 21.76 | 16.98 | 15.54 | 29.74 | 15.63 | 10.01 | 14.84 | 24.61 | 12.91 | 13.01 | 15.60 |
| EV / FCF | — | 29.43 | 32.42 | 40.95 | 67.63 | 34.85 | 22.22 | 24.09 | 21.56 | 34.38 | 24.57 |
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 | 19.8% | 19.8% | 20.4% | 16.7% | 20.4% | 20.4% | 20.3% | 21.5% | 22.6% | 23.1% | 23.6% |
| Operating Margin | 10.2% | 10.2% | 10.7% | 6.5% | 9.8% | 15.8% | 11.0% | 11.7% | 12.6% | 12.8% | 13.0% |
| Net Profit Margin | 10.0% | 10.0% | 10.2% | 5.2% | 13.4% | 19.6% | 8.7% | 6.6% | 10.7% | 7.8% | 9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 26.2% | 26.2% | 27.7% | 13.7% | 34.7% | 59.6% | 32.9% | 26.4% | 42.4% | 32.7% | 40.8% |
| ROA | 8.3% | 8.3% | 8.7% | 4.6% | 11.3% | 16.1% | 7.5% | 5.7% | 8.9% | 6.7% | 8.8% |
| ROIC | 10.2% | 10.2% | 10.8% | 6.4% | 9.8% | 17.2% | 13.0% | 13.4% | 17.7% | 23.7% | 24.6% |
| ROCE | 11.8% | 11.8% | 12.5% | 7.6% | 11.0% | 16.6% | 12.2% | 13.0% | 13.2% | 13.8% | 16.4% |
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 | 1.18 | 1.18 | 1.32 | 1.21 | 1.10 | 1.26 | 1.70 | 1.91 | 1.76 | 2.17 | 1.34 |
| Debt / EBITDA | 3.43 | 3.43 | 3.52 | 4.63 | 3.40 | 2.36 | 3.37 | 3.22 | 3.14 | 4.05 | 1.94 |
| Net Debt / Equity | — | 0.92 | 1.04 | 1.00 | 0.93 | 0.98 | 1.23 | 1.65 | 1.57 | 0.57 | 0.86 |
| Net Debt / EBITDA | 2.67 | 2.67 | 2.76 | 3.83 | 2.88 | 1.85 | 2.45 | 2.79 | 2.80 | 1.07 | 1.24 |
| Debt / FCF | — | 4.64 | 6.04 | 7.06 | 9.72 | 5.91 | 4.52 | 4.81 | 4.97 | 2.40 | 2.39 |
| Interest Coverage | 8.62 | 8.62 | 8.81 | 5.30 | 12.53 | 13.48 | 7.29 | 5.62 | 7.66 | 12.37 | 9.91 |
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 | 1.09 | 1.09 | 1.00 | 1.13 | 1.06 | 1.28 | 1.58 | 1.12 | 1.17 | 2.38 | 1.22 |
| Quick Ratio | 0.99 | 0.99 | 0.89 | 1.04 | 0.98 | 1.20 | 1.50 | 1.04 | 1.09 | 2.27 | 1.07 |
| Cash Ratio | 0.32 | 0.32 | 0.31 | 0.26 | 0.22 | 0.37 | 0.51 | 0.24 | 0.19 | 1.61 | 0.45 |
| Asset Turnover | — | 0.82 | 0.83 | 0.84 | 0.84 | 0.84 | 0.83 | 0.82 | 0.80 | 0.74 | 0.96 |
| Inventory Turnover | 25.70 | 25.70 | 22.45 | 29.52 | 29.78 | 35.02 | 38.63 | 33.95 | 35.63 | 25.45 | 22.95 |
| Days Sales Outstanding | — | 76.93 | 68.47 | 80.33 | 74.73 | 71.22 | 65.87 | 71.83 | 78.52 | 63.92 | 49.13 |
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% | 1.6% | 1.7% | 1.6% | 1.2% | 1.6% | 1.9% | 1.5% | 1.9% | 1.3% | 1.5% |
| Payout Ratio | 30.9% | 30.9% | 28.4% | 54.3% | 21.5% | 14.0% | 29.9% | 39.1% | 25.4% | 34.2% | 29.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 5.1% | 6.0% | 2.9% | 5.8% | 11.2% | 6.2% | 3.8% | 7.6% | 3.7% | 5.2% |
| FCF Yield | 4.3% | 4.0% | 3.8% | 3.0% | 1.7% | 3.5% | 5.6% | 5.2% | 6.0% | 3.1% | 4.5% |
| Buyback Yield | 2.1% | 2.0% | 3.6% | 2.1% | 1.8% | 5.9% | 1.0% | 1.4% | 3.0% | 0.7% | 3.7% |
| Total Shareholder Yield | 3.7% | 3.6% | 5.4% | 3.7% | 3.0% | 7.5% | 2.8% | 2.9% | 4.9% | 2.0% | 5.2% |
| Shares Outstanding | — | $144M | $147M | $152M | $156M | $161M | $168M | $170M | $175M | $176M | $181M |
Sentinel program execution risk
According to current market data, Northrop Grumman trades at a forward P/E of 17.90, which suggests investors are paying a premium for its unique role in the nuclear triad compared to more diversified industrial peers that lack such specialized, sole-source defense program exposure.
The current valuation appears to bake in an expectation of long-term stability from the B-21 and Sentinel programs, despite the inherent risks of cost-plus contract structures. Investors should monitor whether this multiple remains sustainable if the Sentinel program faces further Nunn-McCurdy cost breaches that could force a re-evaluation of future earnings growth.
Based on reported figures, the company's operating margin of 10.0% in 2026Q1 highlights the ongoing pressure from high fixed-cost overheads and the transition of major development programs into production, which often carries lower initial margins than mature, legacy defense platforms.
The fluctuation in gross margins, which dipped to 19.8% in the most recent quarter, suggests that Northrop is currently absorbing inefficiencies as it scales production. This trend warrants further investigation into whether management can successfully improve cost absorption as these programs reach full-rate production status.
As reported in financial statements, the ROIC of 3.0% in 2026Q1 remains relatively low, reflecting the massive capital intensity required to maintain the specialized facilities and secure infrastructure necessary for the company's high-end aerospace and space systems portfolio.
The modest return on capital suggests that while the company possesses a strong competitive moat, the sheer scale of investment required to maintain that moat limits the immediate compounding of returns. Investors should consider that this metric is heavily influenced by the amortization of past acquisitions, which may mask the underlying operational efficiency of the core business.
Based on quarterly data, the cash conversion cycle remains sensitive to project-based milestones, with DSO reaching 83 days in 2026Q1, indicating that the company's working capital efficiency is heavily dependent on the timing of government payments for long-cycle defense contracts.
The variability in the cash conversion cycle suggests that Northrop's liquidity is subject to the lumpy nature of milestone-based revenue recognition. This creates a structural reliance on effective working capital management to ensure that cash inflows remain aligned with the high fixed-cost requirements of its manufacturing operations.
The P/E ratio is frequently misapplied to Northrop Grumman because it fails to account for the significant FAS/CAS pension spread, which can cause headline earnings to diverge sharply from the actual cash-generating power of the business across different fiscal periods.
Analysts should prioritize free cash flow and adjusted operating margins over P/E multiples to better understand the company's true earning power. Relying solely on GAAP earnings may obscure the impact of non-operational pension adjustments and the timing of milestone-based payments that define the company's actual financial health.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NOC stock.
Northrop Grumman Corporation's current P/E ratio is 18.8x. The historical average is 16.5x. This places it at the 69th percentile of its historical range.
Northrop Grumman Corporation's current EV/EBITDA is 16.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.5x.
Northrop Grumman Corporation's return on equity (ROE) is 26.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 19.6%.
Based on historical data, Northrop Grumman Corporation is trading at a P/E of 18.8x. This is at the 69th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Northrop Grumman Corporation's current dividend yield is 1.64% with a payout ratio of 30.9%.
Northrop Grumman Corporation has 19.8% gross margin and 10.2% operating margin. Operating margin between 10-20% is typical for established companies.
Northrop Grumman Corporation's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.