Valuation - Aerospace Industry

This is the first of many posts about the valuations calculated by my method. I will post one industry at a time to make for better comparison. Obviously every company will have its own set of problems, but overall, ratios should be somewhat constant over an industry. 


First in line is the Aerospace industry - it's first alphabetically...

Click on the picture for a larger view.

Notable on this list are the big guys - BA, GD and LMT. 3 big defense contractors. All 3 are rated as cheap in general, but most specifically compared to sales and growth which are the most important factors. BA is close to a fair valuation in this estimate - the average being around $79 and it traded at $74 on Friday. Obviously the growth number is based on estimates so it is only as reliable as the estimates.  


Also apparently undervalued are NOC, LLL and RTN. These 3 are undervalued on all criteria - sales, book and growth which would usually get you a spot in my combination screen when combined with some momentum.


Others like FLIR, GR and ERJ are currently expensive - between 11 and 31%. GR and FLIR are cheap relative to potential growth but expensive relative to book and sales. The closest valuation is GR. ERJ is really expensive relative to growth and cheap relative to sales.


Overall, a mixed bag!