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The 10-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past ten years. As of today (2026-09-11), BAE Systems's 10-Year Sortino Ratio is 0.88.
BAE Systems (OTCPK:BAESF) 10-Year Sortino Ratio Explanation
The 10-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past ten year. It is calculated as the annualized result of the average ten-year monthly excess returns divided by the standard deviation of negative returns in the ten-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
BAE Systems 10-Year Sortino Ratio Related Terms
BAESF vs SPCX, GE, RTX: 10-Year Sortino Ratio Comparison
For the Aerospace & Defense subindustry, BAE Systems's 10-Year Sortino Ratio, along with its competitors' market caps and 10-Year Sortino 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 10-Year Sortino Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's 10-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where BAE Systems's 10-Year Sortino Ratio falls into.
The 10-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last ten year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 10-Year Sortino Ratio can be calculated by dividing the difference between the ten-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past ten year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
BAE Systems (BAESF) has a 10-Year Sortino Ratio of 0.88 as of Sep. 11, 2026. 10-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past ten years. View historical data for BAE Systems and its competitors.
Is BAE Systems' 10-Year Sortino Ratio too high?
BAE Systems' current 10-Year Sortino Ratio is 0.88. Overall, BAE Systems has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' 10-Year Sortino Ratio compare to SPCX and GE?
BAE Systems' 10-Year Sortino Ratio of 0.88 can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year Sortino Ratio for an Aerospace & Defense company?
A good 10-Year Sortino Ratio depends on the Aerospace & Defense industry context. However, 10-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 10-Year Sortino Ratio mean?
A high 10-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 10-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past ten years. View historical data for BAE Systems and its competitors. BAE Systems's current 10-Year Sortino Ratio is 0.88. 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 (BAESF) is currently considered Fairly Valued. The stock's GF Value™ is $24.68, compared to a current price of $26.16 — trading 6% above its estimated fair value. The current 10-Year Sortino Ratio is 0.88. BAE Systems' overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year Sortino Ratio calculated?
10-Year Sortino Ratio is calculated from a company's financial statements. For BAE Systems (BAESF), the current 10-Year Sortino Ratio is 0.88 as of Sep. 11, 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 (BAESF) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $26.16 is trading 6% above its estimated GF Value™ of $24.68.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESF:
10-Year Sortino Ratio: 0.88
GF Value™: $24.68 vs. price of $26.16 (6% above fair value)
No single metric tells the full story. See the BAESF 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.
82GF Score
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10-Year Sortino Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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