Highly Regarded

Is The Boeing Company (BA) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Industrials sector peers in our coverage

156% Premium TTM fundamentals · sector averages from covered peers

BA trades at 83.8× TTM earnings — a 156% premium to its Industrials sector average of 32.8× in our coverage.

The Numbers

P/E (TTM)

83.8×

Sector avg: 32.8×

P/S (TTM)

1.8×

Sector avg: 4.8×

Market Cap

$163.20B

EPS (TTM): $2.48

Revenue (TTM)

$89.46B

Net income: $2.24B

Industrials Peer Comparison

How BA's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
BA This page $207.80 83.8×
CAT $798.14 41.0×
GE $335.58 41.2×
UPS $104.27 16.1×

Is the Premium Justified?

August 30, 2026

Boeing's P/E of 84.6x, significantly above the industrial sector average of 46.0x, suggests investor confidence in a future recovery despite current challenges. While the company secured a substantial F-15 contract ceiling and reported a record $695 billion backlog with increased deliveries in Q1 2026, its commercial airplane division continues to post operating losses due to supply chain issues and regulatory hurdles. The current valuation likely prices in expectations for improved profitability and cash flow generation as production stabilizes and long-term defense contracts materialize, rather than reflecting current earnings performance, which remains pressured by operational inefficiencies.

Sources

Frequently Asked Questions

Is BA overvalued or undervalued?
On trailing-twelve-month earnings, BA trades at 83.8x versus a Industrials sector average of 32.8x in our coverage — a 155.7% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing BA with its own Industrials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Industrials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Industrials peers

GE UPS CAT