RTX Corporation (NYSE: RTX) recently closed at $184.21 per share, a price that sits remarkably close to its estimated intrinsic value according to multiple valuation frameworks.
The stock has delivered a 2.7% return over the past week and 3.0% over the past month, though it carries a modest year-to-date decline of 1.6% heading into mid-2026.
Over a longer horizon, RTX has posted a 32.7% return over the past year, alongside very large gains across the three and five-year periods, reflecting sustained investor confidence in the defense sector.
Recent attention on RTX has centered on its position as a major aerospace and defense contractor, with ongoing scrutiny of its role in global defense supply chains and long-term government programs.
Views on long-term defense spending and contract visibility continue to evolve, making valuation analysis particularly relevant for investors trying to assess whether the current price still offers an opportunity.
A Discounted Cash Flow model, which projects future cash flows and discounts them back to present value, estimates RTX’s intrinsic value at approximately $185.07 per share, compared to the recent trading price of $184.21.
The DCF analysis starts from a last-twelve-month free cash flow figure of approximately $7.6 billion, with analyst and extrapolated estimates projecting free cash flow reaching roughly $13.7 billion by 2030.
That comparison between the $185.07 estimated value and the $184.21 market price implies RTX is approximately 0.5% undervalued on a DCF basis, a gap so narrow it effectively signals fair valuation.
On an earnings multiple basis, RTX currently trades at a price-to-earnings ratio of 34.19x, which sits below the Aerospace and Defense industry average of approximately 40.04x and well below a peer group average of 54.64x.
Simply Wall St’s proprietary Fair Ratio for RTX stands at 35.12x, a blended estimate that incorporates earnings growth, profit margins, company size, and risk characteristics specific to the business.
Comparing the current P/E of 34.19x against the Fair Ratio of 35.12x again points to a stock that is trading broadly in line with where it arguably should be, reinforcing the DCF conclusion.
RTX carries a value score of 4 out of 6 on Simply Wall St’s framework, suggesting it is neither deeply discounted nor significantly overpriced relative to its fundamental profile.
Investors with a more optimistic view of catalysts such as defense contracts and engine upgrades point to a price target as high as $242, while more cautious observers focused on tariff risks, engine cost overruns, and budget dependence anchor closer to a $180 target.
The spread between those two targets illustrates how much the RTX investment thesis depends on assumptions about government spending trajectories and the company’s ability to manage execution risk on major programs.
With the market price sitting almost precisely at the DCF-derived intrinsic value, RTX appears to offer limited margin of safety for new buyers but equally limited downside for those already holding the stock based on fundamentals.
