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RTX (NYSE:RTX) GF Value Rank

: 9 (As of Today)
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RTX has the GF Value Rank of 9.

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, RTX'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.


RTX GF Value Rank Distribution

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

* The bar in red indicates where RTX's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

RTX GF Value Rank Related Terms

Thank you for viewing the detailed overview of RTX's GF Value Rank provided by Please click on the following links to see related term pages.

RTX (NYSE:RTX) Business Description

RTX logo
1000 Wilson Boulevard, Arlington, VA, USA, 22209
RTX 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 commercial aerospace manufacturers and to the defense market. The company operates in three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, an aircraft engine manufacturer; and Raytheon, a defense prime contractor providing a mix of missiles, missile defense systems, sensors, hardware, and communications technology to the military.
Leanne G Caret director 1000 WILSON BLVD, ARLINGTON VA 22209
Shane G Eddy officer: President, P&W 870 WINTER STREET, WALTHAM MA 02451
Ramsaran Maharajh officer: EVP and General Counsel 870 WINTER STREET, WALTHAM MA 02451
Amy L Johnson officer: Corporate VP and Controller 870 WINTER STREET, WALTHAM MA 02451
Harris Bernard A Jr director 3411 ERIN KNOLL CT, HOUSTON TX 77059
Dantaya M Williams officer: Chief Human Resources Officer 870 WINTER STREET, WALTHAM MA 02451
Robert O Work director 870 WINTER STREET, WALTHAM MA 02451
Winnefeld James A Jr director 870 WINTER STREET, WALTHAM MA 02451
George Oliver director 5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Dinesh C Paliwal director 5454 W 110TH STREET, OVERLAND PARK KS 66211
Thomas A Kennedy director, officer: Executive Chairman 870 WINTER STREET, WALTHAM MA 02451
Wesley D Kremer officer: President, RMD 870 WINTER STREET, WALTHAM MA 02451
Roy Azevedo officer: President, RIS 870 WINTER STREET, WALTHAM MA 02451
Ellen M Pawlikowski director 870 WINTER STREET, WALTHAM MA 02451

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