Simply Wall St says General Dynamics may be 20% undervalued

General Dynamics may be about 20% undervalued at its current share price of $344.23, according to a Simply Wall St analysis published by Yahoo Finance on October 18, 2026.

The analysis applied a discounted cash flow model, which values a company by projecting the cash it can return to shareholders and discounting those sums back to the present. It used trailing twelve-month free cash flow of roughly $6.6 billion as a starting point and assumed steady growth in cash generation rather than a sharp acceleration or a turnaround. On those assumptions, the estimated intrinsic value came out meaningfully above the market price, the analysis said. General Dynamics trades at 20.7 times earnings.

The defense contractor's shares have risen 82.3% over five years. Simply Wall St said the planned 2027 transfer of the chief executive role to Danny Deep, with Phebe Novakovic remaining as executive chair, supported a continuity assumption in the model. It also pointed to the company's work on natural language control for combat vehicles as a factor that could alter future cash generation and investment needs.

One community narrative cited in the piece put the stock at 7% undervalued and noted a record order backlog of $136.5 billion, equal to more than two years of revenue. Simply Wall St said the commentary was general in nature and not financial advice.

This story was first reported by Yahoo Finance.