Highly Regarded

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

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

144% Premium TTM fundamentals · sector averages from covered peers

BA trades at 86.3× TTM earnings — a 144% premium to its Industrials sector average of 35.4× in our coverage.

The Numbers

P/E (TTM)

86.3×

Sector avg: 35.4×

P/S (TTM)

1.9×

Sector avg: 5.2×

Market Cap

$168.13B

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 $214.09 86.3×
CAT $880.22 45.2×
GE $348.74 42.8×
UPS $117.71 18.2×

Is the Premium Justified?

July 12, 2026

The Boeing Company's P/E ratio of 89.6x is significantly higher than the Industrials sector average of 50.0x. This premium valuation persists despite recent operational challenges, including ongoing production issues and safety concerns, and a Q1 2026 GAAP loss per share. However, the company's revenue increased to $22.2 billion in Q1 2026, driven by higher commercial deliveries. Boeing also reported a substantial backlog, reaching a record $695 billion, including over 6,100 commercial airplanes, indicating strong long-term demand for its products. The P/E is also influenced by a significant $9.6 billion gain on sale from the Digital Aviation Solutions transaction in Q4 2025, which boosted TTM earnings. Investors appear to be looking past short-term headwinds, anticipating a recovery in production and profitability driven by this robust order book.

Sources

Frequently Asked Questions

Is BA overvalued or undervalued?
On trailing-twelve-month earnings, BA trades at 86.3x versus a Industrials sector average of 35.4x in our coverage — a 143.8% 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 CAT UPS