General Dynamics Corporation (GD) Stock Analysis
Score A+Compounder · Grade A · Unknown
$341.64
$535.30
+56.7%
10/10
A
Compounder
Investment Thesis
High quantitative score: Solid company with strong risk/reward at 8.9:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $535.30 (+56.7%). Significantly undervalued.
PEG-Based EPS
$462.58
FCF DCF Model
$606.48
EV/EBITDA
$471.34
Blended Fair Value
$535.30
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
94/120 points
Investable
ROE (3Y Avg)
16.4%
ROIC-WACC Spread
4.6%
D/E Ratio
0.4x
Current Ratio
1.4x
Interest Coverage
17x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 4.6pp (got 11/25 pts)
- Leverage: D/E 0.4x (13/15 pts)
Market Sentiment
Wall Street Consensus
$409.00
+19.7% Upside
21 analysts
Range: $371.00 — $444.00
Rating: Buy
Our model is slightly more bullish than Wall Street.
Trend & Technical
Insufficient data to calculate SMA 200.
Technical analysis unavailable
Risk & Reward
Asymmetry Ratio
8.92:1
Expected Return
+51.4%
Bull Upside
+89.1%
Bear Downside
-10.0%
Excellent asymmetry: 8.92:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
Get a detailed AI-written breakdown of the investment thesis, risks, and catalysts.
Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of GD?
Based on our multi-method conviction analysis, the estimated fair value of General Dynamics Corporation (GD) is $535.30. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is GD a buy, sell, or hold?
GD currently has a STRONG_BUY rating with a conviction score of 10/10. High quantitative score: Solid company with strong risk/reward at 8.9:1. Quantitative score: high.
Is GD a high-quality stock?
General Dynamics Corporation has a quality grade of A (94/120 points), rated as Investable. Key metrics include ROE of 16.4%, ROIC-WACC spread of 4.6%, and D/E ratio of 0.4x.
What type of stock is GD?
GD is classified as a "compounder" in our framework. Low dividend (reinvesting): 1.8%, Cyclical sector: Industrials, Moderate growth: 10.8%, Dividend paying: 1.8%, Strong ROE: 17.4%
What do Wall Street analysts say about GD?
21 Wall Street analysts have a consensus price target of $409.00 for GD, representing +19.7% upside. Targets range from $371.00 to $444.00. The consensus recommendation is "Buy". Our model is slightly more bullish than Wall Street.
What are the risks of investing in GD?
The risk/reward asymmetry ratio for GD is 8.92:1, rated as Very Favorable. Excellent asymmetry: 8.92:1 ratio. Upside significantly outweighs downside. The expected return is +51.4%, with bull case upside of +89.1% and bear case downside of -10.0%.
What is the current trend for GD?
GD is in a unknown trend. Insufficient data to calculate SMA 200. The technical score is —/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.