4 models fit General Dynamics Corporation Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionGeneral Dynamics Corporation Common Stock (GD)
Fair value (4 models)
$260
ACCE price target
$341
Rating
Overvalued
Horizon
12 months
Fair value published on 19 Oct 2026, 17:05 CEST; previously $292 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST; previously $360 since 18 Apr 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 17:05 CEST.
Price used: $349 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
34.2% above
-25.5% to fair value
ACCE score
61
out of 100
Analysts
58% buy
24 covering
P/E
21.3x
forward 18.8x
1-year return
+2.3%
Dividend yield
1.81%
General Dynamics Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
General Dynamics builds Gulfstream business jets, Virginia- and Columbia-class submarines and Abrams tanks, plus a large Technologies segment that supplies military IT and communications. Its moat is the switching cost of defense programs: once a platform is designed in, the Navy and Army rarely re-source it, and the company's shipyards are among the few that can build nuclear submarines. The near-term driver is the submarine backlog, where Electric Boat's production ramp is the main lever on revenue, alongside sustained demand for Gulfstream aircraft. Revenue growth of 8.1% is solid for a prime contractor, and the forward P/E of 18.5 sits below the trailing 21.0, which implies earnings are expected to rise. The offsetting risks are thin operating margins of 10.4% and execution delays on fixed-price shipbuilding contracts, so this is worth a deeper look mainly to test whether the submarine ramp is converting into margin.