General Dynamics (GD): Assessing Valuation After Jet Ramp-Up, New Defense Deals and Analyst Upgrades

Simply Wall St.

General Dynamics (GD): Assessing Valuation After Jet Ramp-Up, New Defense Deals and Analyst Upgrades

Simply Wall St

Wed, December 17, 2025 at 6:14 PM EST

2 min read

In this article:

General Dynamics (GD) has been on investors radar after tightening up its Aerospace operations and leaning into fresh demand for its G700 and G800 jets, while also landing sizable new defense work.

See our latest analysis for General Dynamics.

All of this has underpinned a solid run in the stock, with the latest share price at $336.41 and a strong year to date share price return of 28.89 percent. The five year total shareholder return of 153.95 percent suggests momentum is still very much with long term holders.

If these aerospace and defense tailwinds have you thinking bigger picture, it could be worth exploring other aerospace and defense names using the aerospace and defense stocks as a starting point for ideas.

Yet with the stock near record highs, analyst targets implying only modest upside, and growth expectations rising, the key question now is whether General Dynamics still offers a genuine buying opportunity or if the market has already priced in its future expansion.

Most Popular Narrative: 11.7% Undervalued

With the narrative fair value sitting around $381 per share versus the last close at $336.41, the current setup assumes more upside than the stock price reflects today.

Strong demand for Gulfstream's new business jet models (G700 and G800) across multiple regions, coupled with improved delivery cadences and a long-term capacity to ramp up production, suggest potential for higher future revenue and gradual margin improvement as learning curves are traversed and product mix shifts towards higher-margin offerings.

Read the complete narrative.

Want to see how steady revenue growth, rising margins, and a richer earnings multiple combine to reach that higher fair value line? The full narrative breaks down the forecast steps, shows where analysts expect operating leverage to kick in, and reveals the profit profile they think justifies paying more for GD than the market does today.

Result: Fair Value of $380.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside depends on execution, as potential supply chain setbacks in Marine Systems or delays in technology contracts are both capable of denting growth and margins.

Find out about the key risks to this General Dynamics narrative.

Build Your Own General Dynamics Narrative

If you would rather dig through the numbers yourself and challenge these assumptions, you can craft a personalized GD storyline in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding General Dynamics.

Story Continues

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GD.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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