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Northrop Grumman Corporation (NOC) Stock: How Does it Score on Fundamental Metrics?

Thursday, October 28, 2021 10:41 AM | InvestorsObserver Analysts
Northrop Grumman Corporation (NOC) Stock: How Does it Score on Fundamental Metrics?

InvestorsObserver gives Northrop Grumman Corporation (NOC) a strong valuation score of 65 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. NOC currently holds a better value than 65% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 65
NOC gets a 65 Valuation Rank today. Find out what this means to you and get the rest of the rankings on NOC!

Metrics Analysis

NOC has a trailing twelve month Price to Earnings (PE) ratio of 14 which places it around the histroical average of roughly 15. NOC is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. NOC's trailing-12-month earnings per share (EPS) of 27.72 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. NOC's 12-month-forward PE to Growth (PEG) ratio of 1.82 is considered a poor value as the market is overvaluing NOC in relation to the company's projected earnings growth due. NOC's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.


All together these valuation metrics paint a pretty poor picture for NOC at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for NOC are worse than the average of the market resulting in a valuation score of 65. Click Here to get the full Report on Northrop Grumman Corporation (NOC) stock.

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