GD

General Dynamics CorporationIndustrials / Aerospace & DefenseINTACT

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support, customer support and custom completion services, modifications, upgrades, and lifecycle sustainment support services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as provides maintenance, modernization, and lifecycle support services for navy ships; offers and program management, planning, engineering, and design support services for submarine construction programs. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, energetics and munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, and armored vehicles; and offers modernization programs, support and sustainment services, and development programs. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers; cloud services, cybersecurity, network modernization, artificial intelligence; machine learning; application development, high-performance computing, and 5G and advanced communications services; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.

Share Price
$355.90
52W: $306.77 - $400
DCF Fair Value
$289.98
-22.7% Premium
P/E (TTM)
21.7x
ROIC
8%
Operating Margin
10.4%
FCF Yield
4.6%
Debt / Equity
0.35x
Piotroski Score
7/9
Altman Z-Score
3.8
Market Cap
$96.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($289.98)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$289.98
MOS Buy Target (-25%)
$217.49
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$355.90
DCF Fair Value
$288.87
-23.2% Premium
$4,400M
$100M$4,400M (Reported)$50,000M
5.3%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$5,200M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$36.2B
PV of Terminal Value
$47.3B
Implied Enterprise Value
$83.5B
Implied Equity Value
$78.3B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$4,633$4,879$5,137$5,410$5,696$5,953$6,221$6,500$6,793$7,099
Present Value (PV)$4,251$4,106$3,967$3,832$3,702$3,549$3,403$3,262$3,128$2,999

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-85.9% Premium
$191.42

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $16.40BVPS: $99.30
Revised Graham Formula-43.5% Premium
$248.05

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings4.3% Yield
$15.42 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $4.2BYield: 4.3%

Reverse DCF: Market Growth Expectation

MODEST BARRIER
6.9% CAGR (Next 10 Yrs)

At the current price of $355.90, the market is assuming the business will compound Free Cash Flow at 6.9% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil GD with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for General Dynamics Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 10.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: General Dynamics Corporation (GD) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for General Dynamics Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, General Dynamics Corporation has an estimated DCF intrinsic fair value of $289.98 per share compared to its current market price of $355.90. This represents an estimated 22.7% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $191.42.

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