BAE SystemsCHIX:BAL -0.94%84 PB Ratio is 4.49 as of Jun. 25, 2026, which is 23% above its 10-year median of 3.64. GuruFocus rates CHIX:BAL with a GF Score™ of 84/100 and a GF Value™ of £16.67 (Fairly Valued). The stock has 2 warning signs investors should review. Among 339 Aerospace & Defense companies, BAE Systems ranks worse than 59% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-06-25), BAE Systems's share price is £18.0925. BAE Systems's Book Value per Share for the quarter that ended in Dec. 2025 was £4.03. Hence, BAE Systems's PB Ratio of today is 4.49.
Good Sign:
BAE Systems PLC stock PB Ratio (=4.53) is close to 1-year low of 4.16.
The historical rank and industry rank for BAE Systems's PB Ratio or its related term are showing as below:
CHIX:BAl'
s PB Ratio Range Over the Past 10 Years
Min: 2.29 Med: 3.64 Max: 6.4
Current: 4.53
During the past 13 years, BAE Systems's highest PB Ratio was 6.40. The lowest was 2.29. And the median was 3.64.
CHIX:BAl's PB Ratio is ranked worse than 59% of 339
companies
in the Aerospace & Defense industry
Industry Median: 3.66
vs CHIX:BAl: 4.53
During the past 12 months, BAE Systems's average Book Value Per Share Growth Rate was 1.50% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 3.40% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 21.00% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 16.50% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of BAE Systems was 43.90% per year. The lowest was -37.20% per year. And the median was 0.90% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
BAE Systems PB Ratio Related Terms
BAE Systems PB Ratio Historical Data
* Premium members only.
The historical data trend for BAE Systems's PB Ratio 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's PB Ratio distribution charts can be found below:
* The bar in red indicates where BAE Systems's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
BAE Systems's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
BAE Systems (CHIX:BAL) has a PB Ratio of 4.49 as of Jun. 25, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on BAE Systems and its competitors. This is 23% above median its historical median of 3.64. Over the past decade, BAE Systems' PB Ratio has ranged from 2.29 to 6.40. According to the industry distribution chart, BAE Systems ranks #200 out of 339 companies in the Aerospace & Defense industry, placing it in the top 59%.
Is BAE Systems' PB Ratio too high?
BAE Systems' current PB Ratio of 4.49 is 23% above median its 10-year median of 3.64. Over the past 10 years, this metric has ranged from a low of 2.29 to a high of 6.40. The Aerospace & Defense industry median PB Ratio is 3.66. BAE Systems' value of 4.49 is 22.7% above this industry median. Based on the distribution chart, BAE Systems ranks #200 out of 339 companies in the Aerospace & Defense industry, which is below the industry midpoint. 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' PB Ratio compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #200 out of 339 companies for PB Ratio. This places BAE Systems in the lower half of its industry. The industry median PB Ratio is 3.66. BAE Systems' value of 4.49 is 22.7% above this benchmark. Historically, BAE Systems' own PB Ratio has ranged from 2.29 to 6.40 over the past decade. While the company's 10-year median is 3.64 vs. the industry median of 3.66, BAE Systems has consistently been above 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 PB Ratio for an Aerospace & Defense company?
The median PB Ratio among Aerospace & Defense companies is 3.66, based on 339 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current PB Ratio of 4.49 is 22.7% above 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median PB Ratio is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current PB Ratio is 4.49, which is 23% above median its own 10-year median of 3.64. 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 (CHIX:BAL) is currently considered Fairly Valued. The stock's GF Value™ is £16.67, compared to a current price of £18.09 — trading 8.5% above its estimated fair value. The current PB Ratio is 4.49, which is 23% above median its 10-year median of 3.64 and 22.7% above the Aerospace & Defense industry median of 3.66. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For BAE Systems (CHIX:BAL), the current PB Ratio is 4.49 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 (CHIX:BAL) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of £18.09 is trading 8.5% above its estimated GF Value™ of £16.67.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for CHIX:BAL:
PB Ratio: 4.49 (23% above median its 10-year median of 3.64)
GF Value™: £16.67 vs. price of £18.09 (8.5% above fair value)
Industry Position: 22.7% above the Aerospace & Defense median (#200 of 339)
No single metric tells the full story. See the CHIX:BAL 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.
84GF Score
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