BAE Systems (CHIX:BAL) Shiller PE Ratio: (As of Sep. 22, 2026)

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

CHIX:BAL BAE Systems PLC CHIX:BAL
86 GF Score
Price £20.45
GF Value £18.64
Valuation Fairly Valued
! 2 Warning Signs
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What is BAE Systems Shiller PE Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


BAE Systems  (CHIX:BAl) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


BAE Systems Shiller PE Ratio Related Terms


BAE Systems Shiller PE Ratio Historical Data

* Premium members only.

The historical data trend for BAE Systems's Shiller PE 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.

BAE Systems Shiller PE Ratio Chart

BAE Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.17 22.38 24.50 22.86 31.21

BAE Systems Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Shiller PE 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 27.61 22.68 35.31 30.99 31.79

CHIX:BAL vs SPCX, GE, RTX: Shiller PE Ratio Comparison

For the Aerospace & Defense subindustry, BAE Systems's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, BAE Systems's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where BAE Systems's Shiller PE Ratio falls into.


CHIX:BAL
86GF Score
BAE Systems PLC CHIX:BAL
Shiller PE Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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BAE Systems Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

BAE Systems's E10 for the fiscal year that ended in Dec25 is calculated as:

For example, BAE Systems's adjusted earnings per share data for the fiscal year that ended in Dec25 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec25 (Change)*Current CPI (Dec25)
=0.6803/139.9000*139.9000
=0.680

Current CPI (Dec25) = 139.9000.

BAE Systems Annual Data

Earnings per Share (Diluted) CPI Adj_EPS
201612 0.287 102.200 0.393
201712 0.259 105.000 0.345
201812 0.312 107.100 0.408
201912 0.461 108.500 0.595
202012 0.405 109.400 0.518
202112 0.548 114.700 0.668
202212 0.505 125.300 0.563
202312 0.605 130.500 0.648
202412 0.641 135.100 0.663
202512 0.680 139.900 0.680

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Is BAE Systems (CHIX:BAL) Overvalued in 2026?

Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued. The current stock price of £20.45 is trading 9.7% above its estimated GF Value™ of £18.64. GuruFocus considers BAE Systems to be Fairly Valued.

Key valuation signals for CHIX:BAL:

  • Shiller PE Ratio:
  • GF Value™: £18.64 vs. price of £20.45 (9.7% above fair value)
  • GF Score™: 86/100 with 2 warning signs

No single metric tells the full story. See the CHIX:BAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


BAE Systems Business Description

Address 6 Carlton Gardens, Stirling Square, London, GBR, SW1Y 5AD
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.
86GF Score

Get the complete analysis for CHIX:BAL

Shiller PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£20.45
Price
£18.64
GF Value