Boeing Stock Surges on 737 Max 7 Certification, But Is It Overvalued?

Boeing's (BA) stock price has surged after the Federal Aviation Administration certified the 737 Max 7 for commercial service, allowing the company to start delivering completed jets. The certification arrives alongside a sharp increase in trading interest, with Boeing's share price rising by 8.46% over the past seven days.

This momentum follows a softer 90-day period where the stock declined by 1.24%. However, some investors view this jump as validation of progress on the 737 Max program, while others see it as a short-term relief rally that leaves valuation as the next question.

The most popular narrative suggests Boeing is overvalued, with a fair value estimate of $160.01 using a 10% discount rate. This creates a significant gap for investors to weigh, especially considering the operating recovery is real but incomplete.