RTX Corporation (RTX) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of RTX Corporation stock $88.19, price $192, that is 54.0% below the price, quality 64 out of 100. Rating: strongly overvalued. Calculated from audited financials with 23 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $65.35 – $225.49 · fair‑value band $56.61 – $116.18 · the $191.88 price screens above the $88.19 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 6, 2026.
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RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon.
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The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations.
This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training.
It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services.
The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services.
The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software.
The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.
Stock analysis
RTX Corporation (RTX) currently trades at $191.88, while our model-based Fair Value estimate is $88.19, 54% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $94.94 per share, and 0 of the 23 models we run sit above the $191.88 price.
Bear case: the Dividend Discount group reads lowest at $45.09, and 23 of the 23 models stay below the price. Data coverage for this calculation is high.
Scenario range: $56.61 (bear) to $116.18 (bull), the price of $191.88 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
RTX Corporation reported revenue of $88.6B in FY2025 versus $64.4B in FY2021, a compound +8.3%/yr. Reported net income was $6.7B in FY2025, compounding +14.9%/yr from FY2021.
Key figures
Market cap $262B Mega · P/E ratio 31.2 · P/S ratio 2.73 · EPS (TTM) $6.15 · Dividend yield 1.5% · Net margin 8.8% · Return on equity 12.9% · Return on assets (EBIT) 3.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (low confidence).
What moves the price
The share trades about 15% below its 52-week high and 15% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −23% fair-value upside, at −54%, RTX screens richer than that median.
Fair Value models
Bear$56.61Fair Value $88.19Bull$116.18
Price $191.88 · Downside -54.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.84 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 5 officers or directors sold shares worth $8.7M and none bought.
SaleDantaya M WilliamsEVP & Chief HR Officer2× since Feb 23, 2026: 21,784 shares, avg. $202.36$4.4MOct 30, 2026
SaleRamsaran MaharajhEVP and General Counsel2× since Feb 19, 2026: 28,779 shares, avg. $213.79$6.2MAug 18, 2026
SaleKevin G DaSilvaSenior VP and Treasurer2× since Feb 13, 2026: 15,146 shares, avg. $207.49$3.1MJul 28, 2026
SaleTracy A AtkinsonDirector2,295 shares at $218.05$500,425Jul 27, 2026
SaleTroy D BrunkPresident, Collins Aerospace8,557 shares at $210.30$1.8MJul 24, 2026
SaleChristopher T. CalioChairman, President and CEO, Director63,568 shares at $203.80$13.0MFeb 19, 2026
SaleNeil G. Mitchill JREVP, Chief Financial Officer35,755 shares at $205.57$7.4MFeb 19, 2026
SaleShane G EddyPresident, P&W17,527 shares at $199.16$3.5MFeb 12, 2026
SaleAmy L JohnsonSenior VP and Controller8,088 shares at $195.03$1.6MFeb 10, 2026
Plus 5 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+9.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.4%
Start year 2020 (pandemic). Over 10 years: +4.6% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
≈ +14.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year≈ +13.1%
Dividend (yield on the price)1.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.2.0% vs −3.1%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.3% → 10%
⚠ Base effect: the rate starts in the earnings trough around 2020 (starting value 2.82 per share, median 7.30 in 2015 to 2018). It measures the recovery from the trough, not lasting growth.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+15.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +12.9% a year for the price and +4.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: RTX benefits from major multi-year defense contracts that strengthen its missiles and systems position amid rising demand, yet thin evidence across categories and potential production bottlenecks limit any durable assessment.
Main risk: New Pentagon rules from 2027 requiring rare earth magnets free of Chinese materials could raise compliance costs, require supplier requalification and delay production of missiles, radar and propulsion systems.
Bull case: RTX could mitigate magnet rules by qualifying domestic or allied suppliers early and leverage its scale to win more defense contracts while using data from its large installed engine base to improve GTF durability and retain customers.
Bear case: Persistent supply chain disruptions from the magnet rules combined with further GTF share losses to GE could slow missile production ramps and reduce commercial engine margins, limiting growth from the defense backlog.
RTX has secured major multi-year defense contracts that strengthen its position in missiles and systems amid rising demand. Our models see it as overvalued, so the tension lies in whether production ramps and supply chain fixes convert that visibility into sustained results or hit bottlenecks first. Will operational execution unlock more upside than constraints limit?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Aerospace & Defense · 238 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Above median
Fair Value upside−54.0% · Below median
Profitability
Return on equity (12 months)12.9% · Above median
Return on assets3.9% · Below median
Net margin (12 months)8.8% · Above median
Operating margin (12 months)15.5% · Above median
Growth and dividend
Revenue growth (quarter YoY)11.1% · Below median
Dividend yield (12 months)1.5% · Above median
Balance sheet
Debt / equity0.53× · Highest 25%
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
P/E (12 months)31.2× · Cheaper than median
P/B4.01× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)2.73× · Pricier than median
Price / free cash flow (fiscal year)35.2× · Pricier than median
EV/EBITDA17.0× · Cheaper than median
PEG2.09× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)56· sector 63
PAST (return on equity)51· sector 40
HEALTH (low debt)74· sector 94
DIVIDEND (yield)29· sector 19
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "RTX Corporation Fair Value". https://www.fairvalue-calculator.com/stock/RTX
Frequently asked questions
Is RTX Corporation (RTX) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $88.19 versus a price of $191.88, about 54% lower (overvalued).
What is the fair value of RTX?
Our model-based fair value for RTX Corporation is $88.19 (as of Nov 6, 2026), built from audited fundamentals. The current price: $191.88.
What is the quality score of RTX?
RTX Corporation has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for RTX Corporation (RTX)?
Our model-based price target is the fair value of $88.19 (as of Nov 6, 2026) from 23 valuation models. Cautious scenario $56.61, optimistic scenario $116.18. It is a calculation from audited fundamentals, not an analyst target.
What is the RTX Corporation stock forecast for 2026?
Our models put fair value at $88.19, about 54% lower versus a price of $191.88 (overvalued). Cautious scenario $56.61, optimistic scenario $116.18. The calculation is refreshed regularly with new filings.
What is the revenue of RTX Corporation (RTX)?
RTX Corporation reported trailing-twelve-month revenue of about $96.0B (latest available figure, as of Nov 6, 2026).
Does RTX Corporation pay a dividend?
RTX Corporation currently shows a dividend yield of 1.47% relative to its recent price (as of Nov 6, 2026).
What growth is priced into RTX Corporation (RTX)?
For today's price to be fair in a discounted-cash-flow model, RTX Corporation would have to grow free cash flow by +15.6 % per year for five years (discount rate 7.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +9.4 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of RTX use?
Our models discount RTX Corporation at 7.6 %: a base by market capitalisation (mega), damped by beta 0.31, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RTX Corporation that is +15.6 % per year a year over ten years, using the same discount rate (7.6 %) and the same formula as our fair value.
How much growth has RTX Corporation (RTX) delivered so far?
Over the past 5 years revenue at RTX Corporation grew +9.4 % a year. The price currently implies +15.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of RTX Corporation (RTX) growing?
The median revenue growth in the sector is +7.9 % a year. That is the yardstick for the growth priced into RTX Corporation (+15.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of RTX Corporation (RTX)?
The free-cash-flow yield on the price is 2.84 %: that much free cash flow RTX Corporation produces per unit of market value. When it exceeds the discount rate of our models (7.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RTX Corporation (RTX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RTX Corporation it is $88.19 per share (as of Nov 6, 2026), against a price of $191.88. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is RTX Corporation stock overvalued or undervalued in 2026?
As of Nov 6, 2026, RTX trades above its calculated fair value: price $191.88, fair value $88.19, a gap of about −54% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RTX?
No. The price is what the market pays today ($191.88); the fair value is what the company's own numbers justify ($88.19). For RTX Corporation the two are $103.69 per share apart. That gap is exactly why we show both numbers side by side.
How much is RTX Corporation worth?
The market values RTX Corporation at about $262B (market capitalisation, as of Nov 6, 2026). Per share that is $191.88; our models calculate a fair value of $88.19 per share.
What do the bullish and bearish scenarios say about RTX?
Our models span a range for RTX Corporation: cautious scenario $56.61, base $88.19, optimistic $116.18 per share (as of Nov 6, 2026, price $191.88). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RTX?
RTX Corporation trades at a price-to-earnings ratio of 31.2 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $88.19 is built from several models across several years. Median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), reported earnings, 4 of the years ex one-offs: 34.5. Other multiples: PEG 2.1, P/B 4.0, P/S 2.7, EV/EBITDA 17.0.
What is the PEG ratio of RTX?
The PEG ratio of RTX Corporation is 2.09 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of RTX Corporation (RTX)?
Balance-sheet figures for RTX Corporation (as of Nov 6, 2026): return on equity 12.9%, debt of 0.53 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is RTX from its 52-week high?
RTX Corporation trades at $191.88, about 15% below its 52-week high of $225.49 and 15% above the low of $166.22 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $88.19 is for.
Which stocks are comparable to RTX Corporation?
From the same area (Industrials) we also value General Electric Company, Airbus SE, Lockheed Martin Corporation, General Dynamics Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RTX Corporation stock attractive at the current price?
The data as of Nov 6, 2026: price $191.88, calculated fair value $88.19 (−54%), Quality Score 64/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RTX calculated?
We run RTX Corporation through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $88.19, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. RTX Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RTX Corporation (RTX)?
The closing price on Nov 5, 2026 was $191.88. Our model-based fair value is $88.19, about 54% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RTX Corporation right now?
The price sits above even our optimistic bull case ($116.18). The favourable scenario is already priced in. Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($56.61 to $116.18) leaves room in how you read the outcome.
Where does the earnings growth of RTX Corporation (RTX) come from?
Earnings per share at RTX Corporation grew −7.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share −1.4 %, EBIT margin −6.2 %, tax rate +0.9 %, residual (interest, one-offs) −0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of RTX Corporation
How large is the market capitalisation of RTX Corporation (RTX)?
The market capitalisation of RTX Corporation is $262B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RTX Corporation (RTX)?
The price-to-sales ratio of RTX Corporation is 2.73 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RTX Corporation (RTX)?
Earnings per share at RTX Corporation are $6.15 (price ÷ EPS = P/E 31.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of RTX Corporation (RTX)?
The dividend yield of RTX Corporation is 1.5% (payout 45.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of RTX Corporation (RTX)?
The net margin of RTX Corporation is 8.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RTX Corporation (RTX)?
The return on equity (ROE) of RTX Corporation is 12.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RTX Corporation (RTX)?
On an EBIT basis the return on assets of RTX Corporation is 3.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RTX Corporation (RTX)?
The operating margin of RTX Corporation is 15.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RTX Corporation (RTX)?
Revenue at RTX Corporation is growing +11.1% versus a year earlier (3y avg +9.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at RTX Corporation (RTX)?
Earnings per share at RTX Corporation are growing +34.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does RTX Corporation (RTX) carry?
The net debt of RTX Corporation is $32.1B (fiscal year 2025, ≈ 4.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026