Is The Boeing Company (BA) overvalued?
On Equity Rank's model estimate, BA trades close to its fair value (3% above it). The Boeing Company (BA) last closed at $173.40; the multi-method model fair value is $168.98.
| Price | Model fair value | Price vs model |
|---|---|---|
| $173.40 | $168.98 | 3% above |
What the answer rests on
- 2 of 5 valuation methods put BA's value above its price and 3 put it below, so the methods disagree.
- BA trades at 18.3 times its last year's earnings, against a median of 31.8 for 37 profitable Aerospace & Defense companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 1% above to 241% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind BA's fair value · What prices assume · Other companies