BAE Systems (HAM:BSP) Margin of Safety % (DCF FCF Based): 17.90% (As of Jun. 25, 2026)


HAM:BSP BAE Systems PLC HAM:BSP
84 GF Score
Price €21.37
GF Value €19.69
Valuation Fairly Valued
! 2 Warning Signs
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What is BAE Systems Margin of Safety % (DCF FCF Based)?

BAE Systems HAM:BSP +2.99% 84 Margin of Safety % (DCF FCF Based) is 17.90% as of Jun. 25, 2026. GuruFocus rates HAM:BSP with a GF Score™ of 84/100 and a GF Value™ of €19.69 (Fairly Valued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), BAE Systems's Predictability Rank is 3-Stars. BAE Systems's intrinsic value calculated from the Discounted FCF model is €10.88 and current share price is €21.37. Consequently,

BAE Systems's Margin of Safety % (DCF FCF Based) using Discounted FCF model is 17.90%.

HAM:BSP vs GE, RTX, BA: Margin of Safety % (DCF FCF Based) Comparison

For the Aerospace & Defense subindustry, BAE Systems's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, BAE Systems's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where BAE Systems's Margin of Safety % (DCF FCF Based) falls into.


HAM:BSP
84GF Score
BAE Systems PLC HAM:BSP
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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BAE Systems Margin of Safety % (DCF FCF Based) Calculation

BAE Systems's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(26.03-21.37)/26.03
=17.90 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of 17.90% mean?
BAE Systems (HAM:BSP) has a Margin of Safety % (DCF FCF Based) of 17.90% as of Jun. 25, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on BAE Systems.
Is BAE Systems' Margin of Safety % (DCF FCF Based) too high?
BAE Systems' current Margin of Safety % (DCF FCF Based) is 17.90%. Overall, BAE Systems has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Margin of Safety % (DCF FCF Based) compare to GE and RTX?
BAE Systems' Margin of Safety % (DCF FCF Based) of 17.90% can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for an Aerospace & Defense company?
A good Margin of Safety % (DCF FCF Based) depends on the Aerospace & Defense industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on BAE Systems. BAE Systems's current Margin of Safety % (DCF FCF Based) is 17.90%. 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 (HAM:BSP) is currently considered Fairly Valued. The stock's GF Value™ is €19.69, compared to a current price of €21.37 — trading 8.5% above its estimated fair value. The current Margin of Safety % (DCF FCF Based) is 17.90%. BAE Systems' overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For BAE Systems (HAM:BSP), the current Margin of Safety % (DCF FCF Based) is 17.90% as of Jun. 25, 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 (HAM:BSP) Overvalued in 2026?

Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued. The current stock price of €21.37 is trading 8.5% above its estimated GF Value™ of €19.69. GuruFocus considers BAE Systems to be Fairly Valued.

Key valuation signals for HAM:BSP:

  • Margin of Safety % (DCF FCF Based): 17.90%
  • GF Value™: €19.69 vs. price of €21.37 (8.5% above fair value)
  • GF Score™: 84/100 with 2 warning signs

No single metric tells the full story. See the HAM:BSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

BAE Systems Business Description

Address 6 Carlton Gardens, Stirling Square, London, GBR, SW1Y 5AD
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.
84GF Score

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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€21.37
Price
€19.69
GF Value