Boeing's Discounted Valuation: A Compelling Opportunity or Risky Bet?

Boeing's valuation is currently at a discount compared to its peers in the aerospace sector. The company's price-to-free cash flow (FCF) valuations have been consistently lower than those of GE Aerospace, Howmet Aerospace, and RTX.

The table below shows Boeing's FCF valuations from 2025 to 2030 based on Wall Street consensus from Visible Alpha:

Price to Free Cash Flow

202520262027202820292030
The Boeing CompanyNM66.6x27.3x17.1x13.8x11.6xGE Aerospace42.8x35.3x31.3x28.3x25.9x23.1xHowmet Aerospace58.2x46.6x38.6x32.5x28.6x26.5xHexcel 37.6x33.4x25.7x21.6x18.2x16.8xRTX31.3x30.6x26.1x23.0x20.5x18.7x

The discount is most pronounced beyond 2028, with Boeing's valuation at 11.6x compared to GE Aerospace's 25.9x and Howmet Aerospace's 28.6x.

CEO Kelly Ortberg has been making progress in turning the company around. He announced that Boeing is now ramping up production of the 737 MAX to 47 aircraft per month, with a target of 52 per month in the future.