General Dynamics Ranks 352nd in Market Activity as DCF Model Suggests 15% Premium Over $321 Share Price Despite 43% Volume Surge

On September 4, 2025, General Dynamics (GD) traded with a volume of $0.30 billion, up 43.48% from the prior day, ranking 352nd in market activity. The stock closed down 0.11% at $321.34.

A valuation analysis using a two-stage discounted cash flow (DCF) model estimated GD’s fair value at $382, a 15% premium to its current price of $323. The model projected $36 billion in present value from 10 years of cash flows and a $66 billion present value for terminal value, totaling $103 billion in equity value. However, the analysis emphasized that assumptions about growth rates and discount factors significantly influence outcomes.

Recent analysis flagged GD’s underperformance relative to peers. While its aerospace and defense segments remain strong, the company has seen average backlog growth of just 2.1% over two years and slower earnings per share growth compared to industry benchmarks. Analysts highlighted concerns about demand sustainability and competitive positioning, despite GD’s low debt and stable cash flow profile.

Backtesting of the DCF model showed GD’s current price reflects a 16% discount to its estimated fair value. The model’s assumptions included a 7.8% cost of equity and a 3.1% long-term growth rate. However, the valuation does not account for industry cyclicality or capital requirements, underscoring the need for further analysis of GD’s strategic initiatives and operational efficiency.