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BAE SystemsBAESF +2.81%88 EV-to-OCF is 11.93 as of Aug. 02, 2026, which is 11% below its 10-year median of 13.42. GuruFocus rates BAESF with a GF Score™ of 88/100 and a GF Value™ of $24.46 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 360 Aerospace & Defense companies, BAE Systems ranks better than 51.94% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, BAE Systems's Enterprise Value is $89,289 Mil.
BAE Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $7,486 Mil. Therefore, BAE Systems's EV-to-OCF for today is 11.93.
The historical rank and industry rank for BAE Systems's EV-to-OCF or its related term are showing as below:
BAESF'
s EV-to-OCF Range Over the Past 10 Years
Min: 8.03 Med: 13.42 Max: 25.55
Current: 11.84
During the past 13 years, the highest EV-to-OCF of BAE Systems was 25.55. The lowest was 8.03. And the median was 13.42.
BAESF's EV-to-OCF is ranked better than 51.94% of 360
companies
in the Aerospace & Defense industry
Industry Median: 14.115
vs BAESF: 11.84
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $28.458.
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 Jun. 2026 was $0.933.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
BAE Systems EV-to-OCF Related Terms
BAE Systems EV-to-OCF Historical Data
* Premium members only.
The historical data trend for BAE Systems's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where BAE Systems's EV-to-OCF falls into.
BAE Systems's current Enterprise Value is $89,289 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $7,486 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 (BAESF) has a EV-to-OCF of 11.93 as of Aug. 02, 2026. This is 11% below median its historical median of 13.42. Over the past decade, BAE Systems' EV-to-OCF has ranged from 8.03 to 25.55. According to the industry distribution chart, BAE Systems ranks #173 out of 360 companies in the Aerospace & Defense industry, placing it in the top 48.1%.
Is BAE Systems' EV-to-OCF too high?
BAE Systems' current EV-to-OCF of 11.93 is 11% below median its 10-year median of 13.42. Over the past 10 years, this metric has ranged from a low of 8.03 to a high of 25.55. The Aerospace & Defense industry median EV-to-OCF is 14.12. BAE Systems' value of 11.93 is 15.5% below this industry median. Based on the distribution chart, BAE Systems ranks #173 out of 360 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-OCF compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #173 out of 360 companies for EV-to-OCF. This puts BAE Systems in the upper half of its industry. The industry median EV-to-OCF is 14.12. BAE Systems' value of 11.93 is 15.5% below this benchmark. Historically, BAE Systems' own EV-to-OCF has ranged from 8.03 to 25.55 over the past decade. While the company's 10-year median is 13.42 vs. the industry median of 14.12, 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-OCF for an Aerospace & Defense company?
The median EV-to-OCF among Aerospace & Defense companies is 14.12, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current EV-to-OCF of 11.93 is 15.5% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median EV-to-OCF is 14.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current EV-to-OCF is 11.93, which is 11% below median its own 10-year median of 13.42. 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 (BAESF) is currently considered Modestly Overvalued. The stock's GF Value™ is $24.46, compared to a current price of $28.46 — trading 16.3% above its estimated fair value. The current EV-to-OCF is 11.93, which is 11% below median its 10-year median of 13.42 and 15.5% below the Aerospace & Defense industry median of 14.12. BAE Systems' overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For BAE Systems (BAESF), the current EV-to-OCF is 11.93 as of Aug. 02, 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 (BAESF) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $28.46 is trading 16.3% above its estimated GF Value™ of $24.46.
GuruFocus considers BAE Systems to be Modestly Overvalued.
Key valuation signals for BAESF:
EV-to-OCF: 11.93 (11% below median its 10-year median of 13.42)
GF Value™: $24.46 vs. price of $28.46 (16.3% above fair value)
Industry Position: 15.5% below the Aerospace & Defense median (#173 of 360)
No single metric tells the full story. See the BAESF 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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EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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