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Chemring GroupLSE:CHG 82 EV-to-EBIT is 24.68 as of Aug. 31, 2026, which is 18% above its 10-year median of 20.97. GuruFocus rates LSE:CHG with a GF Score™ of 82/100 and a GF Value™ of £3.99 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 253 Aerospace & Defense companies, Chemring Group ranks better than 56.13% 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.
Chemring Group's Enterprise Value for the quarter that ended in Apr. 2026 was £1,556.7 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Chemring Group's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 was £66.2 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.
Chemring Group EV-to-EBIT Related Terms
Chemring Group EV-to-EBIT Historical Data
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The historical data trend for Chemring Group'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, Chemring Group'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.
Chemring Group EV-to-EBIT vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Chemring Group's EV-to-EBIT falls into.
Chemring Group's current Enterprise Value is £1,633.8 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Chemring Group's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 was £66.2 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.
Chemring Group (LSE:CHG) has a EV-to-EBIT of 24.68 as of Aug. 31, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Chemring Group and its competitors. This is 18% above median its historical median of 20.97. According to the industry distribution chart, Chemring Group ranks #111 out of 253 companies in the Aerospace & Defense industry, placing it in the top 43.9%.
Is Chemring Group's EV-to-EBIT too high?
Chemring Group's current EV-to-EBIT of 24.68 is 18% above median its 10-year median of 20.97. The Aerospace & Defense industry median EV-to-EBIT is 27.31. Chemring Group's value of 24.68 is 9.6% below this industry median. Based on the distribution chart, Chemring Group ranks #111 out of 253 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Chemring Group has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's EV-to-EBIT compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #111 out of 253 companies for EV-to-EBIT. This puts Chemring Group in the upper half of its industry. The industry median EV-to-EBIT is 27.31. Chemring Group's value of 24.68 is 9.6% below this benchmark. While the company's 10-year median is 20.97 vs. the industry median of 27.31, Chemring Group 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 27.31, 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. Chemring Group's current EV-to-EBIT of 24.68 is 9.6% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median EV-to-EBIT is 27.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current EV-to-EBIT is 24.68, which is 18% above median its own 10-year median of 20.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Significantly Overvalued. The stock's GF Value™ is £3.99, compared to a current price of £5.51 — trading 38% above its estimated fair value. The current EV-to-EBIT is 24.68, which is 18% above median its 10-year median of 20.97 and 9.6% below the Aerospace & Defense industry median of 27.31. Chemring Group's overall GF Score™ is 82/100 with 4 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 Chemring Group (LSE:CHG), the current EV-to-EBIT is 24.68 as of Aug. 31, 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 Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.51 is trading 38% above its estimated GF Value™ of £3.99.
GuruFocus considers Chemring Group to be Significantly Overvalued.
Key valuation signals for LSE:CHG:
EV-to-EBIT: 24.68 (18% above median its 10-year median of 20.97)
GF Value™: £3.99 vs. price of £5.51 (38% above fair value)
Industry Position: 9.6% below the Aerospace & Defense median (#111 of 253)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
82GF Score
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