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General Dynamics (FRA:GDX) PS Ratio : 1.88 (As of Jun. 14, 2024)


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What is General Dynamics PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, General Dynamics's share price is €270.85. General Dynamics's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €144.44. Hence, General Dynamics's PS Ratio for today is 1.88.

Warning Sign:

General Dynamics Corp stock PS Ratio (=1.87) is close to 5-year high of 1.92

The historical rank and industry rank for General Dynamics's PS Ratio or its related term are showing as below:

FRA:GDX' s PS Ratio Range Over the Past 10 Years
Min: 0.84   Med: 1.49   Max: 2.26
Current: 1.87

During the past 13 years, General Dynamics's highest PS Ratio was 2.26. The lowest was 0.84. And the median was 1.49.

FRA:GDX's PS Ratio is ranked better than
54.9% of 306 companies
in the Aerospace & Defense industry
Industry Median: 2.12 vs FRA:GDX: 1.87

General Dynamics's Revenue per Sharefor the three months ended in Mar. 2024 was €35.64. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €144.44.

Good Sign:

General Dynamics Corp has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of General Dynamics was 8.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 5.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 4.00% per year. During the past 10 years, the average Revenue per Share Growth Rate was 6.10% per year.

During the past 13 years, General Dynamics's highest 3-Year average Revenue per Share Growth Rate was 25.30% per year. The lowest was -25.40% per year. And the median was 5.60% per year.

Back to Basics: PS Ratio


General Dynamics PS Ratio Historical Data

The historical data trend for General Dynamics's PS 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.

* Premium members only.

General Dynamics PS Ratio Chart

General Dynamics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.30 1.13 1.53 1.75 1.69

General Dynamics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.59 1.46 1.47 1.69 1.81

Competitive Comparison of General Dynamics's PS Ratio

For the Aerospace & Defense subindustry, General Dynamics's PS Ratio, along with its competitors' market caps and PS 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.


General Dynamics's PS Ratio Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, General Dynamics's PS Ratio distribution charts can be found below:

* The bar in red indicates where General Dynamics's PS Ratio falls into.



General Dynamics PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

General Dynamics's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=270.85/144.443
=1.88

General Dynamics's Share Price of today is €270.85.
General Dynamics's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €144.44.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


General Dynamics  (FRA:GDX) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


General Dynamics PS Ratio Related Terms

Thank you for viewing the detailed overview of General Dynamics's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


General Dynamics (FRA:GDX) Business Description

Address
11011 Sunset Hills Road, Reston, VA, USA, 20190
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments include aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment creates and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units, an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.

General Dynamics (FRA:GDX) Headlines

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