BAE Systems Fair Value
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The fair market value of BA.L stock is 765.38 GBX. Relative to the market price of 1382 GBX BAE Systems is overvalued by 44.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
BAE Systems Valuation
Current BA.L share ticker price is 1382 GBX.
The fair value level of 765.38 GBX can be considered as an effective entry point for long-term investors to start investing in BA.L stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 45% higher its fair value
Current price is 56% higher its minimum value
Current price is 20% higher its maximum value
Market price:
BA.L stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
BAE Systems PLC Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
18.15
2
Median P/E over 5 years
12.54
3
Minimum P/E over 5 years
9.9
4
Earning per share (last 12 months)
61.03 GBP
Maximum value
1
x
4
=
1 107.59 GBX
Fair value
2
x
4
=
765.38 GBX
Minimum value
3
x
4
=
604.13 GBX
BAE Systems PLC price metrics
16.88
Annual return (geometric mean)
25.61
Risk (standard deviation) of returns
β
0.78
Beta (volatility compared to market)