BAE SystemsBAESY +0.02%90 Peter Lynch Fair Value is $43.65 as of Jul. 12, 2026, which is 2562% above its 10-year median of 1.64. GuruFocus rates BAESY with a GF Score™ of 90/100 and a GF Value™ of $92.00 (Fairly Valued). The stock has 2 warning signs investors should review. Among 109 Aerospace & Defense companies, BAE Systems ranks worse than 55.96% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, BAE Systems's PEG is 1. BAE Systems's 5-Year TTM EBITDA Growth Rate is 10.97.
BAE Systems's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2025 was $3.98. Therefore, the Peter Lynch Fair Value for today is $43.65.
As of today (2026-07-12), BAE Systems's share price is $99.94. BAE Systems's Peter Lynch fair value is $43.65. Therefore, BAE Systems's Price to Peter Lynch Fair Value Ratio for today is 2.29.
The historical rank and industry rank for BAE Systems's Peter Lynch Fair Value or its related term are showing as below:
BAESY'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.16 Med: 1.64 Max: 2.19
Current: 2.19
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of BAE Systems was 2.19. The lowest was 1.16. And the median was 1.64.
BAESY's Price-to-Peter-Lynch-Fair-Value is ranked worse than 55.96% of 109
companies
in the Aerospace & Defense industry
Industry Median: 2.04
vs BAESY: 2.19
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
BAE Systems (OTCPK:BAESY) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 10.97 instead of 15 in this case.
BAE Systems's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
99.94
/
43.65
=
2.29
* 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 Peter Lynch Fair Value Related Terms
BAE Systems Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for BAE Systems's Peter Lynch Fair Value 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.
BAESY vs SPCX, GE, RTX: Peter Lynch Fair Value Comparison
For the Aerospace & Defense subindustry, BAE Systems's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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 Price-to-Peter-Lynch-Fair-Value vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where BAE Systems's Price-to-Peter-Lynch-Fair-Value falls into.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BAE Systems's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2025 was $3.98.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of $43.65 mean?
BAE Systems (BAESY) has a Peter Lynch Fair Value of $43.65 as of Jul. 12, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on BAE Systems and its competitors. This is 2562% above median its historical median of 1.64. Over the past decade, BAE Systems' Peter Lynch Fair Value has ranged from 1.16 to 2.19. According to the industry distribution chart, BAE Systems ranks #61 out of 109 companies in the Aerospace & Defense industry, placing it in the top 56%.
Is BAE Systems' Peter Lynch Fair Value too high?
BAE Systems' current Peter Lynch Fair Value of $43.65 is 2562% above median its 10-year median of 1.64. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 2.19. The Aerospace & Defense industry median Peter Lynch Fair Value is 2.04. BAE Systems' value of $43.65 is 2039.7% above this industry median. Based on the distribution chart, BAE Systems ranks #61 out of 109 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, BAE Systems has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Peter Lynch Fair Value compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #61 out of 109 companies for Peter Lynch Fair Value. This places BAE Systems in the lower half of its industry. The industry median Peter Lynch Fair Value is 2.04. BAE Systems' value of $43.65 is 2039.7% above this benchmark. Historically, BAE Systems' own Peter Lynch Fair Value has ranged from 1.16 to 2.19 over the past decade. While the company's 10-year median is 1.64 vs. the industry median of 2.04, 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 Peter Lynch Fair Value for an Aerospace & Defense company?
The median Peter Lynch Fair Value among Aerospace & Defense companies is 2.04, based on 109 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current Peter Lynch Fair Value of $43.65 is 2039.7% 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median Peter Lynch Fair Value is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current Peter Lynch Fair Value is $43.65, which is 2562% above median its own 10-year median of 1.64. 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 (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $92.00, compared to a current price of $99.94 — trading 8.6% above its estimated fair value. The current Peter Lynch Fair Value is $43.65, which is 2562% above median its 10-year median of 1.64 and 2039.7% above the Aerospace & Defense industry median of 2.04. BAE Systems' overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For BAE Systems (BAESY), the current Peter Lynch Fair Value is $43.65 as of Jul. 12, 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 $99.94 is trading 8.6% above its estimated GF Value™ of $92.00.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
Peter Lynch Fair Value: $43.65 (2562% above median its 10-year median of 1.64)
GF Value™: $92.00 vs. price of $99.94 (8.6% above fair value)
Industry Position: 2039.7% above the Aerospace & Defense median (#61 of 109)
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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