Northrop Grumman Corporation

United States of America Country flag United States of America
Sector: Defense
Ticker: NOC
Factsheet Factsheet

Market multiple valuation of Northrop Grumman Corporation ( NOC | USA)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Northrop Grumman Corporation is significantly higher than the median of its peer group: around 18.00. The company valuation of Northrop Grumman Corporation according to these metrics is way above the market valuation of its peer group.
The P/Earnings NTM ratio of Northrop Grumman Corporation is significantly higher than the average of its sector (Defense): 15.82. The company valuation of Northrop Grumman Corporation according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Northrop Grumman Corporation is significantly higher than its historical 5-year average: 16.2. The (current) company valuation of Northrop Grumman Corporation is therefore way above its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2021P/E NTM
Northrop Grumman CorporationFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Defense18.0518.2515.82
DJIA23.2719.7515.46
United States of America0.779.439.28
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Beta (Ref: DJIA)
Levered betaUnlevered beta
1-Year0.560.52
2-Year0.590.54
3-Year0.620.57
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Stock Perf excl. Dividends (in USD)
NOCDJIARel. Perf.
Year-to-Date39.6%-7.0%46.7%
1-Week1.9%-1.8%3.7%
1-Month-0.1%1.9%-2.0%
1-Year48.5%-5.5%54.0%
3-Year56.8%20.6%36.2%
5-Year76.8%38.9%38.0%
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International Peers - Northrop Grumman Corporation
Company NameCtryMarket
Cap.
last (mUSD)
Northrop Grumman Corpor...USA83 296
International Peers Median0.27
Lockheed Martin Corpora...USA129 548
General Dynamics Corp.USA68 000
Leonardo SpAITA4 709
AviChina Industry & Tec...CHN3 693
Saab ABSWE5 138
GPRV Analysis
Northrop Grumman Cor...
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Northrop Grumman Corporation
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).