Stock fact sheet · data as of
General Dynamics Corporation (GD): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · United States · Quality / Blue-Chip
Is GD undervalued?
GD closed at 337.03 on 16 Oct 2026, which is 18% above the GLS average fair value of 286.36 from 9 models. 6 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
There is a wide gap between DDM (92.26) and 10 Cap (576.20). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files GD under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for GD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 326.55 | -3% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 192.60 | -43% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 355.86 | +6% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 111.40 | -67% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 168.76 | -50% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 576.20 | +71% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 569.09 | +69% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 92.26 | -73% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 184.51 | -45% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -27.27 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 407.43 | +21% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
General Dynamics Corporation scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 7.5/10 puts GD among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are moderate - ROIC 11.9%, ROE 16.4%, ROA 7.4% - with debt at 0.38 times equity and a free-cash-flow yield of 7.1%.
The dividend yield is 1.86% at a payout ratio of 37%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Marine Systems 33%, Technologies 26%, Aerospace 25% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 11.9% |
|---|---|---|---|
| GLS Moat | 7.5 / 10 | ROE | 16.4% |
| Debt / equity | 0.38 | ROA | 7.4% |
| Free-cash-flow yield | 7.1% | Payout ratio | 37% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 1 / 10 |
Wheel Score 66: Good
With a Wheel Score of 66 - the Good band - General Dynamics Corporation falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 5/25, Health 18/20, Moat 11/15, Premium 13/20, Stability 19/20; Value (5/25) scores lowest.
Implied volatility is 28% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (13 of 20 points). Chain open interest is 21,466 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.2M shares a day on a market cap of $91.2B, with a beta of 0.33 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 5 / 25 | -18% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.5/10 | |
| Premium | 13 / 20 | implied volatility 28% | |
| Stability | 19 / 20 | 1.2M shares/day, $91.2B cap, beta 0.33 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
General Dynamics Corporation reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to General Dynamics Corporation by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HWM Howmet Aerospace Inc. | 219.75 | 111.60 | -97% | 68Good | $87.6B |
| NOC Northrop Grumman Corporation | 499.63 | 449.01 | -11% | 72Good | $71.0B |
| LMT Lockheed Martin Corporation | 532.64 | 439.20 | -21% | 67Good | $122.9B |
| TDG TransDigm Group Incorporated | 1,109.77 | 1,238.79 | +10% | 75Good | $61.3B |
| BA The Boeing Company | 188.73 | 78.41 | -141% | 54Fair | $149.2B |
| HONA Honeywell Aerospace Inc | 163.11 | 69.57 | -134% | 45Weak | $51.7B |
| LHX L3Harris Technologies, Inc. | 240.50 | 226.04 | -6% | 76Good | $44.8B |
| HEI-A HEICO Corporation | 231.34 | 133.81 | -73% | 39No options | $43.0B |
| HEI HEICO Corporation | 308.64 | 155.07 | -99% | 58Fair | $43.0B |
| RKLB Rocket Lab USA, Inc. | 59.18 | - | - | 45Weak | $35.4B |
| ESLT Elbit Systems Ltd. | 741.61 | 363.05 | -104% | 62Fair | $34.8B |
| AXON Axon Enterprise, Inc. | 417.19 | 66.90 | -524% | 49Weak | $33.9B |
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Start free See the Sunday ScanQuestions about GD
Is GD undervalued right now?
No: at 337.03 the stock trades 18% above the GLS average fair value of 286.36 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of GD and what does it mean?
GD scores 66 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for GD?
286.36 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does General Dynamics Corporation report earnings next?
The next earnings report is due on 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does GD have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 21,466 open interest across all expiries and implied volatility of 28% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.