The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-06-25), BAE Systems's share price is £18.0925.
BAE Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was £0.68. Therefore, BAE Systems's PE Ratio for today is 26.61.
Good Sign:
BAE Systems PLC stock PE Ratio (=26.83) is close to 1-year low of 25.75.
During the past 13 years, BAE Systems's highest PE Ratio was 33.93. The lowest was 8.61. And the median was 19.10.
BAE Systems's EPS (Diluted) for the
six
months ended in Dec. 2025 was £0.36.
Its EPS (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was £0.68.
As of today (2026-06-25), BAE Systems's share price is £18.0925.
BAE Systems's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2025 was £0.74. Therefore, BAE Systems's PE Ratio without NRI ratio for today is 24.35.
During the past 13 years, BAE Systems's highestPE Ratio without NRI was 31.05. The lowest was 7.86. And the median was 15.17.
BAE Systems's EPS without NRI for the
six
months ended in Dec. 2025 was £0.40.
Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2025 was £0.74.
During the past 12 months, BAE Systems's average EPS without NRIGrowth Rate was 9.90% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 10.70% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 11.50% per year.
During the past 10 years, the average EPS without NRIGrowth Rate was 6.40% per year.
During the past 13 years, BAE Systems's highest 3-Year average EPS without NRI Growth Rate was 88.00% per year. The lowest was -50.20% per year. And the median was 3.45% per year.
BAE Systems's EPS (Basic) for the
six
months ended in Dec. 2025 was £0.37.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2025 was £0.69.
Back to Basics: PE Ratio
BAE Systems (CHIX:BAl) PE Ratio Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.
PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
BAE Systems PE Ratio Related Terms
BAE Systems PE Ratio Historical Data
* Premium members only.
The historical data trend for BAE Systems's PE 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 PE Ratio, along with its competitors' market caps and PE 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 PE Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's PE Ratio distribution charts can be found below:
* The bar in red indicates where BAE Systems's PE Ratio falls into.
The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
BAE Systems's Share Price of today is £18.0925.
For company reported semi-annually, BAE Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £0.68.
* 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:
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
BAE Systems (CHIX:BAL) has a PE Ratio of 26.61 as of Jun. 25, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on BAE Systems and its competitors. This is 39% above median its historical median of 19.10. Over the past decade, BAE Systems' PE Ratio has ranged from 8.61 to 33.93.
Is BAE Systems' PE Ratio too high?
BAE Systems' current PE Ratio of 26.61 is 39% above median its 10-year median of 19.10. Over the past 10 years, this metric has ranged from a low of 8.61 to a high of 33.93. 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' PE Ratio compare to GE and RTX?
BAE Systems' PE Ratio of 26.61 can be compared against companies in the Aerospace & Defense industry. Historically, BAE Systems' own PE Ratio has ranged from 8.61 to 33.93 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio for an Aerospace & Defense company?
A good PE Ratio depends on the Aerospace & Defense industry context. However, PE Ratio 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 PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on BAE Systems and its competitors. BAE Systems's current PE Ratio is 26.61, which is 39% above median its own 10-year median of 19.10. 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 PE Ratio is 26.61, which is 39% above median its 10-year median of 19.10. 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 PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For BAE Systems (CHIX:BAL), the current PE Ratio is 26.61 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:
PE Ratio: 26.61 (39% above median its 10-year median of 19.10)
GF Value™: £16.67 vs. price of £18.09 (8.5% above fair value)
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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PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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