Is RTX Corporation (RTX) overvalued?
On Equity Rank's model estimate, RTX trades close to its fair value (2% below it). RTX Corporation (RTX) last closed at $189.53; the multi-method model fair value is $194.03.
| Price | Model fair value | Price vs model |
|---|---|---|
| $189.53 | $194.03 | 2% below |
What the answer rests on
- 3 of 11 valuation methods put RTX's value above its price and 8 put it below, so the methods disagree.
- To justify today's price, RTX's free cash flow would need to grow about 5.5% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 19.2% a year.
- RTX trades at 32.3 times its last year's earnings, against a median of 31.4 for 37 profitable Aerospace & Defense companies.
- Over the past year the price sat below the model fair value on 27% of trading days. The gap ranged from 7% below to 66% 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 RTX's fair value · What prices assume · Other companies