BAE SystemsMEX:BA1N 79 PEG Ratio is 2.11 as of Jun. 24, 2026, which is 14% above its 10-year median of 1.85. GuruFocus rates MEX:BA1N with a GF Score™ of 79/100 and a GF Value™ of MXN408.41 (Fairly Valued). The stock has 2 warning signs investors should review. Among 124 Aerospace & Defense companies, BAE Systems ranks better than 54.03% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, BAE Systems's PE Ratio without NRI is 24.10. BAE Systems's 5-Year EBITDA growth rate is 11.40%. Therefore, BAE Systems's PEG Ratio for today is 2.11.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for BAE Systems's PEG Ratio or its related term are showing as below:
MEX:BA1N'
s PEG Ratio Range Over the Past 10 Years
Min: 1.16 Med: 1.85 Max: 3.09
Current: 2.15
During the past 13 years, BAE Systems's highest PEG Ratio was 3.09. The lowest was 1.16. And the median was 1.85.
MEX:BA1N's PEG Ratio is ranked better than 54.03% of 124
companies
in the Aerospace & Defense industry
Industry Median: 2.27
vs MEX:BA1N: 2.15
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
BAE Systems (MEX:BA1N) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
BAE Systems PEG Ratio Related Terms
BAE Systems PEG Ratio Historical Data
* Premium members only.
The historical data trend for BAE Systems's PEG 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 PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's PEG Ratio distribution charts can be found below:
* The bar in red indicates where BAE Systems's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
BAE Systems (MEX:BA1N) has a PEG Ratio of 2.11 as of Jun. 24, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on BAE Systems and its competitors. This is 14% above median its historical median of 1.85. Over the past decade, BAE Systems' PEG Ratio has ranged from 1.16 to 3.09. According to the industry distribution chart, BAE Systems ranks #57 out of 124 companies in the Aerospace & Defense industry, placing it in the top 46%.
Is BAE Systems' PEG Ratio too high?
BAE Systems' current PEG Ratio of 2.11 is 14% above median its 10-year median of 1.85. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 3.09. The Aerospace & Defense industry median PEG Ratio is 2.27. BAE Systems' value of 2.11 is 7% below this industry median. Based on the distribution chart, BAE Systems ranks #57 out of 124 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' PEG Ratio compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #57 out of 124 companies for PEG Ratio. This puts BAE Systems in the upper half of its industry. The industry median PEG Ratio is 2.27. BAE Systems' value of 2.11 is 7% below this benchmark. Historically, BAE Systems' own PEG Ratio has ranged from 1.16 to 3.09 over the past decade. While the company's 10-year median is 1.85 vs. the industry median of 2.27, 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 PEG Ratio for an Aerospace & Defense company?
The median PEG Ratio among Aerospace & Defense companies is 2.27, based on 124 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current PEG Ratio of 2.11 is 7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median PEG Ratio is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current PEG Ratio is 2.11, which is 14% above median its own 10-year median of 1.85. 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 (MEX:BA1N) is currently considered Fairly Valued. The stock's GF Value™ is MXN408.41, compared to a current price of MXN443.66 — trading 8.6% above its estimated fair value. The current PEG Ratio is 2.11, which is 14% above median its 10-year median of 1.85 and 7% below the Aerospace & Defense industry median of 2.27. BAE Systems' overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For BAE Systems (MEX:BA1N), the current PEG Ratio is 2.11 as of Jun. 24, 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 (MEX:BA1N) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of MXN443.66 is trading 8.6% above its estimated GF Value™ of MXN408.41.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for MEX:BA1N:
PEG Ratio: 2.11 (14% above median its 10-year median of 1.85)
GF Value™: MXN408.41 vs. price of MXN443.66 (8.6% above fair value)
Industry Position: 7% below the Aerospace & Defense median (#57 of 124)
No single metric tells the full story. See the MEX:BA1N 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.
79GF Score
Get the complete analysis for MEX:BA1N
PEG Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:BA1N has been successfully added to your 
