BAE SystemsBAESY +0.46%86 EV-to-FCF is 24.78 as of Jun. 28, 2026, which is 31% above its 10-year median of 18.93. GuruFocus rates BAESY with a GF Score™ of 86/100 and a GF Value™ of $88.30 (Fairly Valued). The stock has 2 warning signs investors should review. Among 181 Aerospace & Defense companies, BAE Systems ranks better than 61.88% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, BAE Systems's Enterprise Value is $77,079 Mil.
BAE Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $3,111 Mil. Therefore, BAE Systems's EV-to-FCF for today is 24.78.
The historical rank and industry rank for BAE Systems's EV-to-FCF or its related term are showing as below:
BAESY'
s EV-to-FCF Range Over the Past 10 Years
Min: 10.72 Med: 18.93 Max: 52.26
Current: 25.16
During the past 13 years, the highest EV-to-FCF of BAE Systems was 52.26. The lowest was 10.72. And the median was 18.93.
BAESY's EV-to-FCF is ranked better than 61.88% of 181
companies
in the Aerospace & Defense industry
Industry Median: 33.45
vs BAESY: 25.16
EV-to-FCF 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-FCF 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 $94.91.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
BAE Systems EV-to-FCF Related Terms
BAE Systems EV-to-FCF Historical Data
* Premium members only.
The historical data trend for BAE Systems's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where BAE Systems's EV-to-FCF falls into.
BAE Systems's current Enterprise Value is $77,079 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $3,111 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-FCF of 24.78 as of Jun. 28, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on BAE Systems and its competitors. This is 31% above median its historical median of 18.93. Over the past decade, BAE Systems' EV-to-FCF has ranged from 10.72 to 52.26. According to the industry distribution chart, BAE Systems ranks #69 out of 181 companies in the Aerospace & Defense industry, placing it in the top 38.1%.
Is BAE Systems' EV-to-FCF too high?
BAE Systems' current EV-to-FCF of 24.78 is 31% above median its 10-year median of 18.93. Over the past 10 years, this metric has ranged from a low of 10.72 to a high of 52.26. The Aerospace & Defense industry median EV-to-FCF is 33.45. BAE Systems' value of 24.78 is 25.9% below this industry median. Based on the distribution chart, BAE Systems ranks #69 out of 181 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' EV-to-FCF compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #69 out of 181 companies for EV-to-FCF. This puts BAE Systems in the upper half of its industry. The industry median EV-to-FCF is 33.45. BAE Systems' value of 24.78 is 25.9% below this benchmark. Historically, BAE Systems' own EV-to-FCF has ranged from 10.72 to 52.26 over the past decade. While the company's 10-year median is 18.93 vs. the industry median of 33.45, 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-FCF for an Aerospace & Defense company?
The median EV-to-FCF among Aerospace & Defense companies is 33.45, based on 181 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current EV-to-FCF of 24.78 is 25.9% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median EV-to-FCF is 33.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current EV-to-FCF is 24.78, which is 31% above median its own 10-year median of 18.93. 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 Fairly Valued. The stock's GF Value™ is $88.30, compared to a current price of $94.91 — trading 7.5% above its estimated fair value. The current EV-to-FCF is 24.78, which is 31% above median its 10-year median of 18.93 and 25.9% below the Aerospace & Defense industry median of 33.45. BAE Systems' overall GF Score™ is 86/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For BAE Systems (BAESY), the current EV-to-FCF is 24.78 as of Jun. 28, 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 $94.91 is trading 7.5% above its estimated GF Value™ of $88.30.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
EV-to-FCF: 24.78 (31% above median its 10-year median of 18.93)
GF Value™: $88.30 vs. price of $94.91 (7.5% above fair value)
Industry Position: 25.9% below the Aerospace & Defense median (#69 of 181)
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.
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