Overview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$397.05
+121.00% vs spot
Strong Buy
Spot price
$179.66
Mkt cap $241.94B
subtle cardAnalyst PT consensus
$224.89
+25.18% vs spot
subtle cardMethods covered
18 / 19
15 in blend
subtle cardFootball field
RTX · fair-value range by method
Method comparison
RTX · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $930.18 | $466.19 – $3,169.64 | +417.74% | 22.3% | WACC 5.1%, g₀=21.4%, gₗ=3.6% | high |
| DCF · FCFE | dcf | $506.04 | $302.46 – $1,072.20 | +181.66% | 16.8% | kₑ 5.8%, g₀=21.4%, gₗ=3.6% | high |
| DDM · Gordon | ddm | $129.51 | $88.94 – $238.12 | -27.91% | — | D₁ 2.74, kₑ 5.8%, gₗ 3.6% | med |
| DDM · H-model | ddm | $240.62 | $152.37 – $476.89 | +33.93% | — | D₀ 2.74, g₀=21.4%, gₗ=3.6%, H 5y | med |
| DDM · multi-stage | ddm | $192.43 | $163.57 – $221.30 | +7.11% | 5.6% | 5y schedule 21.4% → 3.6%, kₑ 5.8% | high |
| Residual income | income | $56.55 | $49.77 – $63.34 | -68.52% | 11.2% | BV 51.48, ROE 10.0% → kₑ | high |
| EVA / MVA | income | $624.11 | $549.21 – $699.00 | +247.38% | 7.8% | IC 99.2B, WACC 5.1% | high |
| P/E · sector | multiple | $99.20 | $87.30 – $111.10 | -44.78% | 13.4% | EPS 4.96 × peer P/E 20.0 | med |
| P/S · sector | multiple | $135.88 | $115.49 – $156.26 | -24.37% | 3.4% | Rev/sh 67.94 × peer P/S 2.00 | med |
| EV / EBITDA | multiple | $103.87 | $91.40 – $116.33 | -42.19% | 11.2% | EBITDA × peer 13.0× − ND 32.1B | high |
| EV / EBIT | multiple | $81.71 | $69.45 – $93.97 | -54.52% | 2.2% | EBIT × peer 15.6× − ND | med |
| EV / Sales | multiple | $90.90 | $77.27 – $104.54 | -49.40% | 2.2% | Sales × peer 1.70× − ND | med |
| PEG-anchored | multiple | $197.25 | $167.66 – $226.83 | +9.79% | 1.1% | PEG=1, fwd EPS g 39.8% | med |
| Earnings power | intrinsic | $85.53 | $75.27 – $95.80 | -52.39% | 0.6% | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $237.32 | $201.73 – $272.92 | +32.10% | 0.6% | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $106.09 | $90.17 – $122.00 | -40.95% | 0.6% | PE = g (21.4) | low |
| Book NAV | asset | $51.48 | $48.91 – $54.05 | -71.35% | 1.1% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | $13.84 | $11.76 – $15.91 | -92.30% | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g -11.3% · Pessimistic — market pricing decline | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (0.30)β | × 0.30 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 5.80% |
| Pre-tax cost of debtkd | 4.64% |
| Effective tax ratet | 18.2% |
| After-tax cost of debt | 3.80% |
| Equity weight$67.1B | 63.0% |
| Debt weight$39.5B | 37.0% |
| WACC | 5.06% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 6.23% |
| Analyst forward EPS growthFMP | 39.77% |
| Historical 5y revenue CAGRFY | 8.32% |
| Historical 5y EPS CAGRFY | 17.98% |
| Sustainable g (ROE × retention)Δ | 4.70% |
| Blended near-term growth (g₀) | 21.39% |
| Terminal growth (gₗ) | 3.61% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-12-31)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Industrials (live sector PE unavailable)
- FMP /price-target-consensus— mean $224.89
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.