General Dynamics EBITDA vs. Price To Sales

GD Stock  USD 270.43  0.86  0.32%   
Based on General Dynamics' profitability indicators, General Dynamics' profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess General Dynamics' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
4.2 B
Current Value
2.8 B
Quarterly Volatility
1.4 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, General Dynamics' EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.07, whereas Operating Cash Flow Sales Ratio is forecasted to decline to 0.08. At present, General Dynamics' Net Income Per Share is projected to increase based on the last few years of reporting. The current year's Net Income Per E B T is expected to grow to 0.87, whereas Operating Income is forecasted to decline to about 2.4 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.110.1578
Way Down
Pretty Stable
Operating Profit Margin0.0780.1004
Significantly Down
Very volatile
Pretax Profit Margin0.07540.0942
Significantly Down
Very volatile
For General Dynamics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of General Dynamics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well General Dynamics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between General Dynamics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of General Dynamics over time as well as its relative position and ranking within its peers.
  

General Dynamics' Revenue Breakdown by Earning Segment

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Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of General Dynamics. If investors know General will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about General Dynamics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.102
Dividend Share
5.58
Earnings Share
13.13
Revenue Per Share
168.226
Quarterly Revenue Growth
0.104
The market value of General Dynamics is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General Dynamics' value that differs from its market value or its book value, called intrinsic value, which is General Dynamics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because General Dynamics' market value can be influenced by many factors that don't directly affect General Dynamics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between General Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine if General Dynamics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General Dynamics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

General Dynamics Price To Sales vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining General Dynamics's current stock value. Our valuation model uses many indicators to compare General Dynamics value to that of its competitors to determine the firm's financial worth.
General Dynamics is rated # 2 in ebitda category among its peers. It is rated below average in price to sales category among its peers . The ratio of EBITDA to Price To Sales for General Dynamics is about  2,628,645,737 . At present, General Dynamics' EBITDA is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value General Dynamics by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

General Price To Sales vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

General Dynamics

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
4.25 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

General Dynamics

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.61 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

General Price To Sales Comparison

General Dynamics is currently under evaluation in price to sales category among its peers.

General Dynamics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in General Dynamics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, General Dynamics will eventually generate negative long term returns. The profitability progress is the general direction of General Dynamics' change in net profit over the period of time. It can combine multiple indicators of General Dynamics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.2 B-1.2 B
Operating Income4.2 B2.4 B
Income Before TaxB2.2 B
Total Other Income Expense Net-261 M-247.9 M
Net Income3.3 B1.8 B
Income Tax Expense-669 M-635.5 M
Net Income Applicable To Common Shares3.9 B2.4 B
Net Income From Continuing Ops3.3 BB
Non Operating Income Net Other217.3 M228.2 M
Interest Income56 M53.2 M
Net Interest Income-343 M-360.1 M
Change To Netincome-11.7 M-11.1 M
Net Income Per Share 12.14  12.74 
Income Quality 1.42  0.98 
Net Income Per E B T 0.83  0.87 

General Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on General Dynamics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of General Dynamics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the General Dynamics' important profitability drivers and their relationship over time.

Use General Dynamics in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if General Dynamics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in General Dynamics will appreciate offsetting losses from the drop in the long position's value.

General Dynamics Pair Trading

General Dynamics Pair Trading Analysis

The ability to find closely correlated positions to General Dynamics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace General Dynamics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back General Dynamics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling General Dynamics to buy it.
The correlation of General Dynamics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as General Dynamics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General Dynamics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for General Dynamics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your General Dynamics position

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Furniture
Furniture Theme
Companies producing and selling home and office furniture. The Furniture theme has 42 constituents at this time.
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You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project General Dynamics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of General Dynamics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include General Dynamics' income statement, its balance sheet, and the statement of cash flows.
Potential General Dynamics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although General Dynamics investors may work on each financial statement separately, they are all related. The changes in General Dynamics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on General Dynamics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.