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Data-driven stock valuation

RTX Corporation (RTX) fair value: what the stock is really worth

We calculate from audited financials what RTX Corporation is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.

  1. Compare price with fair valuebelow fair value = cheap, above = expensive
  2. Check the quality50 and up solid, 75 and up strong
  3. Watch it or check another stockalert when fair value or trend changes

Industrials · US · Market cap $262B · ISIN US75513E1010

At a glance

RC RTX Corporation logo RTX Corporation RTX · US
Price$200.79
Fair Value$88.37
Upside−56.0%
Quality63/100

A solid business, but trading 127% above our fair value of $88.37.

As of Sep 7, 2026, the fair value of RTX Corporation is $88.37 per share against a price of $200.79, so the fair value sits 56% below the price. A model estimate from reported figures, not an analyst target.

✓Healthy Growth (revenue 5y +9.4 %/yr)
!Thin margins · 8.0% net margin
✓Moderate debt · generates free cash flow
·1.35% dividend yield
!Mixed vs. peers (8/15)
!Moderate moat 50/100
!Weak on dividend: 27 out of 100
Evidence: High Range $51.69 to $116.42

Fair value as of: Sep 7, 2026

From 25 valuation models · updated today

Share price −9.7% over the past month.

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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($116.42). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($51.69 to $116.42) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$225.49 $65.57 Fair Value $88.37 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 7, 2026.

How to read this chart

60‑month range $65.57 – $225.49 · fair‑value band $51.69 – $116.42 · the $200.79 price screens above the $88.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 7, 2026.

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Analysis

RTX Corporation (RTX) currently trades at $200.79, while our model-based Fair Value estimate is $88.37, implying the stock looks roughly 127.2% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of $87.68 per share, and 0 of the 25 models we run sit above the $200.79 price. Bear case: the Asset-Based group reads lowest at $32.46, and 25 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, RTX Corporation generated revenue of $90.4B at a net margin of 8.0%. Revenue grew 8.7% year over year. It earns a return on equity of 11.6%. Net debt stands at $32.1B. Fundamentals as of Sep 7, 2026

Scenario range: $51.69 (bear) to $116.42 (bull), the price of $200.79 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 6% below its 52-week high and 51% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −56%, RTX screens richer than that median.

Fair Value models

Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then ($1.80 per share) are deliberately not added.

Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →

Model 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. Evidence
Highest evidence
FCF DCF $47.67 $82.49 $135.85 78
Growth DCF $49.67 $81.75 $128.61 77
Residual Income $43.77 $49.34 $80.37 75
All 25 models by family
DCF Models
FCF DCF $47.67 $82.49 $135.85 78
Owner Earnings $52.30 $89.49 $146.50 74
5Y Revenue Exit $40.51 $72.85 $113.04 71
5Y EBITDA Exit $58.82 $105.99 $159.45 74
5Y P/E Exit $48.82 $87.90 $127.43 70
10Y Revenue Exit $40.62 $70.72 $108.83 65
10Y EBITDA Exit $54.24 $93.84 $143.98 67
10Y P/E Exit $47.81 $81.22 $119.73 63
Earnings-Based
Graham-Dodd $33.99 $88.27 $115.08 65
PEG = 1.0 $16.73 $23.89 $31.06 57
EPV $33.70 $43.16 $51.57 74
Dividend Discount
Gordon GGM $25.53 $53.27 $93.77 65
DDM Multi-Stage $25.53 $39.94 $56.16 66
Multiples
P/E Multiple $78.73 $104.98 $131.22 63
P/S Multiple $63.74 $84.98 $106.23 58
P/B Multiple $63.74 $84.98 $106.23 55
EV/EBIT $64.20 $92.25 $120.29 65
EV/EBITDA $76.10 $108.11 $140.12 67
EV/Revenue $40.11 $65.85 $91.59 52
Asset-Based
NCAV (Graham) $24.22 $32.46 $48.45 54
Growth DCF
Growth DCF $49.67 $81.75 $128.61 77
Rev-Margin DCF $40.51 $73.38 $109.52 71
Economic Profit
Residual Income $43.77 $49.34 $80.37 75
ROIC Compounder $33.70 $43.16 $54.43 72
Growth Earnings
Growth-Adj P/E $61.37 $87.68 $113.98 67

Widest divergence: Growth Earnings ($87.68) versus Asset-Based ($32.46). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 37.5
P/S ratio 2.85 P/E × margin
EPS (TTM) $5.35 price ÷ EPS = P/E 37.5
Dividend yield 1.4% payout 50.8%
Net margin 7.6% FY2025
Return on equity 11.6% TTM
More key figures
Profitability
Return on assets (EBIT) 3.6% avg 5y
Operating margin 13.2% TTM
Growth
Revenue (TTM) $90.4B TTM
Revenue growth (YoY) +8.7% 3y avg +9.7%
EPS growth (YoY) +32.5%
Balance sheet & cash flow
Free cash flow $7.9B FY2025
Net debt $32.1B FY2025 · ≈ 4.0 yrs of FCF

Figures from reported company fundamentals · as of Sep 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 59 · Market factors (momentum, volatility) 70

Profitability 34
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$88.6B
Latest YoY
+9.7%
Avg. revenue growth/yr (3Y) ⓘ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.
+9.7%
Avg. revenue growth/yr (5Y) ⓘ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.
+9.4%
Avg. revenue growth/yr (40Y) ⓘ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.
+4.5%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+5.1%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+3.7%
Dividend yield1.4%
Trend ⓘ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.5Y 2.0% vs 10Y −3.1%, picking up
Operating margin (EBIT) ⓘ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.2.5% (2020) → 10.0% (2025) · rising
Worst earnings drop103% (2020) (loss year, drop beyond 100%) · in USD
Revenue +8.3%/yr
FY21 $64.4B
FY22 $67.1B
FY23 $68.9B
FY24 $80.7B
FY25 $88.6B
Net income +14.9%/yr
FY21 $3.9B
FY22 $5.2B
FY23 $3.4B
FY24 $4.8B
FY25 $6.7B
Character of growth · EPS growth decomposed (2014-2025) −7.4 % p.a.
Revenue per share −1.4 %

of which total revenue +3.7 % · buybacks/dilution −4.9 %

EBIT margin −6.2 %
Tax rate +0.9 %
Residual (interest, one-offs) −0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

RTX screens 127% overvalued. Compare with General Electric Company →

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RTX Corporation · Fair Value
$88.37 −127%Fair Value
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Cite: Fair Value Calculator (2026). "RTX Corporation Fair Value". https://www.fairvalue-calculator.com/stock/RTX

Peer Group

Aerospace & Defense · 228 stocks

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.

Valuation
Quality Score 63 · Top 25%
Fair Value upside −56% · Below median
Profitability
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 13% · Above median
Growth and dividend
Revenue growth 9% · Below median
Dividend yield (TTM) 1.4% · Above median
Balance sheet
Debt / equity 0.53× · Highest 25%

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 37.5× · Cheaper than median
P/B 4.02× · Pricier than median
P/S (TTM) 2.90× · Pricier than median
P/FCF 33.0× · Priciest 25%
EV/EBITDA 18.9× · Cheaper than median
PEG 2.67× · Priciest 25%

What the price implies (reverse DCF)

The inverse question: what free-cash-flow growth must RTX Corporation deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.

Implied FCF growth, 10 years+11.6 % per year
Achieved revenue growth, 5 years+9.4 % p.a.
Sector median revenue growth+4.6 %
FCF yield on price2.92 %
Discount rate (WACC) in the models7.6 %

The price demands roughly the growth the company recently delivered. Ranking of the largest stocks →

Context: sector, industry, market

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE44 · sector 49
PAST46 · sector 38
HEALTH74 · sector 93
DIVIDEND27 · sector 16

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Sep 7, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $335.71 $116.71 −65%
Airbus SE AIR €213.00 €117.01 −45%
Lockheed Martin Corporation LMT $525.28 $419.01 −20%
Howmet Aerospace Inc HWM $264.85 $50.43 −81%
General Dynamics Corporation GD $359.39 $274.32 −24%
Northrop Grumman Corporation NOC $545.57 $356.59 −35%
TransDigm Group TDG $1,235 $571.03 −54%
L3Harris Technologies, Inc LHX $262.82 $146.55 −44%
Thales S.A HO €243.70 €171.13 −30%
Rheinmetall AG RHM €1,034 €314.04 −70%

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Frequently asked questions

Is RTX Corporation (RTX) overvalued or undervalued?
As of Sep 7, 2026, our model estimates a fair value of $88.37 versus a price of $200.79, about −56% upside (overvalued).
What is the fair value of RTX?
Our model-based fair value for RTX Corporation is $88.37 (as of Sep 7, 2026), built from audited fundamentals. The current price: $200.79.
What is the quality score of RTX?
RTX Corporation has a Quality Score of 63/100. 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 $88.37 (as of Sep 7, 2026) from 25 valuation models. Cautious scenario $51.69, optimistic scenario $116.42. 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 $88.37, about −56% upside versus a price of $200.79 (overvalued). Cautious scenario $51.69, optimistic scenario $116.42. 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 $90.4B (latest available figure, as of Sep 7, 2026).
What is the net profit margin of RTX?
The net profit margin of RTX Corporation is about 8.0%, meaning it keeps roughly 8.0% of revenue as net income. Based on the latest reported figures.
Does RTX Corporation pay a dividend?
RTX Corporation currently shows a dividend yield of about 1.35% relative to its recent price (as of Sep 7, 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 +11.6 % per year for ten years (discount rate 7.6 %, then 2 % perpetual growth). Over the last 5 years revenue grew +9.4 % per year. As of Sep 7, 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 0.30, country premium for USA. The same rate applies in all 26 models.
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