Highly Regarded

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

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

150% Premium TTM fundamentals · sector averages from covered peers

BA trades at 76.1× TTM earnings — a 150% premium to its Industrials sector average of 30.4× in our coverage.

The Numbers

P/E (TTM)

76.1×

Sector avg: 30.4×

P/S (TTM)

1.7×

Sector avg: 4.5×

Market Cap

$148.21B

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 $188.72 76.1×
CAT $735.56 37.8×
GE $312.03 38.3×
UPS $97.84 15.1×

Is the Premium Justified?

October 4, 2026

The Boeing Company's P/E of 78.0x significantly exceeds the Industrials sector average of 43.5x, despite the company reporting a GAAP loss per share of ($0.67) in Q2 2026. This premium valuation appears to be driven by strong long-term demand and a record total company backlog of $715 billion, including over 6,200 commercial airplanes. While the Commercial Airplanes unit still recorded a negative operating margin of -2.7% in Q2 2026, the market may be anticipating a substantial recovery in profitability and cash flow as production rates for key aircraft like the 737 increase and new variants achieve certification and begin deliveries in 2027.

Sources

Frequently Asked Questions

Is BA overvalued or undervalued?
On trailing-twelve-month earnings, BA trades at 76.1x versus a Industrials sector average of 30.4x in our coverage — a 150.3% 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

UPS CAT GE