Highly Regarded

Is The Boeing Company (BA) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Industrials sector peers in our coverage

150% Premium TTM fundamentals · sector averages from covered peers

BA trades at 94.6× TTM earnings — a 150% premium to its Industrials sector average of 37.8× in our coverage.

The Numbers

P/E (TTM)

94.6×

Sector avg: 37.8×

P/S (TTM)

2.1×

Sector avg: 5.6×

Market Cap

$184.16B

EPS (TTM): $2.48

Revenue (TTM)

$89.46B

Net income: $2.24B

Industrials Peer Comparison

How BA's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
BA This page $234.50 94.6×
CAT $969.62 49.8×
GE $378.56 46.5×
UPS $110.00 17.0×

Is the Premium Justified?

July 6, 2026

Boeing's P/E of 94.4x is significantly above the Industrials sector average of 52.0x. The company reported Q1 2026 revenue of $22.2 billion, a 14% year-over-year increase, driven by higher commercial deliveries. The GAAP net loss narrowed to ($7) million from ($31) million in the prior year, and operating cash flow improved substantially. Boeing's total backlog reached a record $695 billion, indicating strong future demand. However, the Commercial Airplanes segment still reported a negative operating margin of -6.1%, reflecting ongoing production challenges and losses on certain programs. The high P/E ratio suggests that investors are pricing in substantial future earnings growth or that the stock is currently trading at a premium relative to its current profitability, which has only recently turned positive.

Sources

Frequently Asked Questions

Is BA overvalued or undervalued?
On trailing-twelve-month earnings, BA trades at 94.6x versus a Industrials sector average of 37.8x in our coverage — a 150.4% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing BA with its own Industrials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Industrials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Industrials peers

GE UPS CAT