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DCF Valuation
Base-case fair value
$548.81
Intrinsic $731.74 · 25% MOS
Current price: $350.01
Base-case summary
Our base-case DCF for General Dynamics Corp (GD) projects 10 years of free cash flow growth at 12.9% for years 1–5 and 6.5% for years 6–10, anchored to 12.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $6.2B in trailing free cash flow, this produces an intrinsic value of $731.74 per share. A 25% safety margin gives a fair value of $548.81, suggesting the stock is currently 57% undervalued against the $350.01 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$6.2B
Cash & equivalents
$3.7B
Total debt
$9.8B
Shares outstanding
274M