Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
BAE SystemsBAESY +0.15%88 EV-to-EBITDA is 14.79 as of Jul. 26, 2026, which is 48% above its 10-year median of 9.99. GuruFocus rates BAESY with a GF Score™ of 88/100 and a GF Value™ of $92.54 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 265 Aerospace & Defense companies, BAE Systems ranks better than 67.17% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, BAE Systems's enterprise value is $84,421 Mil.
BAE Systems's EBITDA for the trailing twelve months (TTM) ended in Dec. 2025 was $5,708 Mil. Therefore, BAE Systems's EV-to-EBITDA for today is 14.79.
The historical rank and industry rank for BAE Systems's EV-to-EBITDA or its related term are showing as below:
BAESY'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.79 Med: 9.99 Max: 17.83
Current: 14.96
During the past 13 years, the highest EV-to-EBITDA of BAE Systems was 17.83. The lowest was 5.79. And the median was 9.99.
BAESY's EV-to-EBITDA is ranked better than 67.17% of 265
companies
in the Aerospace & Defense industry
Industry Median: 21.78
vs BAESY: 14.96
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
BAE Systems (OTCPK:BAESY) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
BAE Systems's PE Ratio (TTM) for today is calculated as:
BAE Systems's share price for today is $105.06.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was $3.665.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for BAE Systems's EV-to-EBITDA 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-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where BAE Systems's EV-to-EBITDA falls into.
BAE Systems's current Enterprise Value is $84,421 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's EBITDA for the trailing twelve months (TTM) ended in Dec. 2025 was $5,708 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-EBITDA of 14.79 as of Jul. 26, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on BAE Systems. This is 48% above median its historical median of 9.99. Over the past decade, BAE Systems' EV-to-EBITDA has ranged from 5.79 to 17.83. According to the industry distribution chart, BAE Systems ranks #87 out of 265 companies in the Aerospace & Defense industry, placing it in the top 32.8%.
Is BAE Systems' EV-to-EBITDA too high?
BAE Systems' current EV-to-EBITDA of 14.79 is 48% above median its 10-year median of 9.99. Over the past 10 years, this metric has ranged from a low of 5.79 to a high of 17.83. The Aerospace & Defense industry median EV-to-EBITDA is 21.78. BAE Systems' value of 14.79 is 32.1% below this industry median. Based on the distribution chart, BAE Systems ranks #87 out of 265 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-EBITDA compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #87 out of 265 companies for EV-to-EBITDA. This puts BAE Systems in the upper half of its industry. The industry median EV-to-EBITDA is 21.78. BAE Systems' value of 14.79 is 32.1% below this benchmark. Historically, BAE Systems' own EV-to-EBITDA has ranged from 5.79 to 17.83 over the past decade. While the company's 10-year median is 9.99 vs. the industry median of 21.78, 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-EBITDA for an Aerospace & Defense company?
The median EV-to-EBITDA among Aerospace & Defense companies is 21.78, based on 265 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current EV-to-EBITDA of 14.79 is 32.1% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on BAE Systems. For the Aerospace & Defense industry, the median EV-to-EBITDA is 21.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current EV-to-EBITDA is 14.79, which is 48% above median its own 10-year median of 9.99. 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 $92.54, compared to a current price of $105.06 — trading 13.5% above its estimated fair value. The current EV-to-EBITDA is 14.79, which is 48% above median its 10-year median of 9.99 and 32.1% below the Aerospace & Defense industry median of 21.78. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For BAE Systems (BAESY), the current EV-to-EBITDA is 14.79 as of Jul. 26, 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 $105.06 is trading 13.5% above its estimated GF Value™ of $92.54.
GuruFocus considers BAE Systems to be Modestly Overvalued.
Key valuation signals for BAESY:
EV-to-EBITDA: 14.79 (48% above median its 10-year median of 9.99)
GF Value™: $92.54 vs. price of $105.06 (13.5% above fair value)
Industry Position: 32.1% below the Aerospace & Defense median (#87 of 265)
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
Get the complete analysis for BAESY
EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BAESY has been successfully added to your 
