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Raytheon Technologies GF Value Rank

: 5 (As of Today)
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Raytheon Technologies has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Aerospace & Defense subindustry, Raytheon Technologies's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.


Raytheon Technologies GF Value Rank Distribution

For the Aerospace & Defense industry and Industrials sector, Raytheon Technologies's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Raytheon Technologies's GF Value Rank falls into.

Raytheon Technologies GF Value Rank Related Terms

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Raytheon Technologies Business Description

Raytheon Technologies logo
870 Winter Street, Waltham, MA, USA, 02451
Raytheon Technologies is a diversified aerospace and defense industrial company formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to the commercial aerospace manufactures and to the defense market as a prime and subprime contractor. The company operates in four segments: Pratt & Whitney, an engine manufacturer, Collins Aerospace, which is a diversified aerospace supplier, and intelligence, space and airborne systems, a mix between a sensors business and a government IT contractor, and integrated defense and missile systems, a defense prime contractor focusing on missiles and missile defense hardware.
Eddy Shane G officer: President, P&W 870 WINTER STREET WALTHAM MA 02451
Maharajh Ramsaran officer: EVP and General Counsel 870 WINTER STREET WALTHAM MA 02451
Johnson Amy L officer: Corporate VP and Controller 870 WINTER STREET WALTHAM MA 02451
Harris Bernard A Jr director 3411 ERIN KNOLL CT HOUSTON TX 77059
Williams Dantaya M officer: Chief Human Resources Officer 870 WINTER STREET WALTHAM MA 02451
Pawlikowski Ellen M director 870 WINTER STREET WALTHAM MA 02451
Winnefeld James A Jr director 870 WINTER STREET WALTHAM MA 02451
Oliver George director 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209
Paliwal Dinesh C director 5454 W 110TH STREET OVERLAND PARK KS 66211
Kennedy Thomas A director, officer: Executive Chairman 870 WINTER STREET WALTHAM MA 02451
Kremer Wesley D officer: President, RMD 870 WINTER STREET WALTHAM MA 02451
Azevedo Roy officer: President, RIS 870 WINTER STREET WALTHAM MA 02451
Work Robert O director 870 WINTER STREET WALTHAM MA 02451
Wood Michael J officer: Corporate VP and Controller 870 WINTER STREET WALTHAM MA 02451

Raytheon Technologies Headlines

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