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BAE SystemsBAESY +0.29%88 EV-to-EBIT is 20.39 as of Jul. 24, 2026, which is 51% above its 10-year median of 13.48. GuruFocus rates BAESY with a GF Score™ of 88/100 and a GF Value™ of $90.86 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 253 Aerospace & Defense companies, BAE Systems ranks better than 67.59% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
BAE Systems's Enterprise Value for the quarter that ended in Dec. 2025 was $75,446 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was $4,144 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BAE Systems EV-to-EBIT Related Terms
BAE Systems EV-to-EBIT Historical Data
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The historical data trend for BAE Systems's EV-to-EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, BAE Systems's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BAE Systems EV-to-EBIT vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where BAE Systems's EV-to-EBIT falls into.
BAE Systems's current Enterprise Value is $84,520 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was $4,144 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BAE Systems (BAESY) has a EV-to-EBIT of 20.39 as of Jul. 24, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on BAE Systems and its competitors. This is 51% above median its historical median of 13.48. Over the past decade, BAE Systems' EV-to-EBIT has ranged from 7.73 to 24.55. According to the industry distribution chart, BAE Systems ranks #82 out of 253 companies in the Aerospace & Defense industry, placing it in the top 32.4%.
Is BAE Systems' EV-to-EBIT too high?
BAE Systems' current EV-to-EBIT of 20.39 is 51% above median its 10-year median of 13.48. Over the past 10 years, this metric has ranged from a low of 7.73 to a high of 24.55. The Aerospace & Defense industry median EV-to-EBIT is 28.13. BAE Systems' value of 20.39 is 27.5% below this industry median. Based on the distribution chart, BAE Systems ranks #82 out of 253 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' EV-to-EBIT compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #82 out of 253 companies for EV-to-EBIT. This puts BAE Systems in the upper half of its industry. The industry median EV-to-EBIT is 28.13. BAE Systems' value of 20.39 is 27.5% below this benchmark. Historically, BAE Systems' own EV-to-EBIT has ranged from 7.73 to 24.55 over the past decade. While the company's 10-year median is 13.48 vs. the industry median of 28.13, BAE Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Aerospace & Defense company?
The median EV-to-EBIT among Aerospace & Defense companies is 28.13, based on 253 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current EV-to-EBIT of 20.39 is 27.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median EV-to-EBIT is 28.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current EV-to-EBIT is 20.39, which is 51% above median its own 10-year median of 13.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Modestly Overvalued. The stock's GF Value™ is $90.86, compared to a current price of $105.20 — trading 15.8% above its estimated fair value. The current EV-to-EBIT is 20.39, which is 51% above median its 10-year median of 13.48 and 27.5% below the Aerospace & Defense industry median of 28.13. BAE Systems' overall GF Score™ is 88/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For BAE Systems (BAESY), the current EV-to-EBIT is 20.39 as of Jul. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $105.20 is trading 15.8% above its estimated GF Value™ of $90.86.
GuruFocus considers BAE Systems to be Modestly Overvalued.
Key valuation signals for BAESY:
EV-to-EBIT: 20.39 (51% above median its 10-year median of 13.48)
GF Value™: $90.86 vs. price of $105.20 (15.8% above fair value)
Industry Position: 27.5% below the Aerospace & Defense median (#82 of 253)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
88GF Score
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