Is Boeing a Bargain After 7.6% Share Price Dip and Order Surge?

Wondering whether Boeing is a bargain or overpriced right now? You're not alone, and today we'll break down the real story behind the numbers. Boeing shares have climbed 28.3% over the past year, but dipped 7.6% this past month, showing how quickly sentiment and perceived risk can shift. Recent headlines around increased aircraft orders from major airlines, as well as renewed scrutiny on safety protocols, have contributed to the stock's volatility. These events are shaping both public perception and investor confidence in Boeing's near-term outlook. According to our six-point valuation check, Boeing scores a 6 out of 6 for being undervalued. However, valuation is more than just a score. Stay tuned as we dive into the different ways to value Boeing, and reveal an even more insightful approach at the end of the article.

Find out why Boeing's 28.3% return over the last year is lagging behind its peers.

Approach 1: Boeing Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates the intrinsic value of a company by projecting its future cash flows and discounting them back to their present value. This approach focuses on what Boeing is expected to generate in free cash for shareholders over the coming years, adjusted for the time value of money.

Boeing’s current free cash flow sits at a loss of $5.9 billion, mostly due to recent industry challenges and operational hurdles. However, analysts expect this to turn around significantly. Projections show free cash flow will climb to roughly $13.2 billion in 2029, with additional growth projected beyond that, reaching up to $21.2 billion by 2035. While analyst estimates only cover five years, future cash flows after that point have been sensibly extrapolated by Simply Wall St based on industry trends and historic performance.

After applying the DCF model using all these future cash flows, Boeing’s estimated intrinsic value comes in at $371.55 per share. Compared with the current share price, this suggests the stock is trading at a 47.6% discount. This indicates Boeing may be significantly undervalued according to this methodology.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Boeing is undervalued by 47.6%. Track this in your watchlist or portfolio, or discover 876 more undervalued stocks based on cash flows.BA Discounted Cash Flow as at Nov 2025

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Boeing.

Approach 2: Boeing Price vs Sales

The Price-to-Sales (P/S) ratio is often preferred for valuing companies like Boeing, especially when earnings are highly volatile or negative and sales remain steady. This ratio helps normalize valuations during periods when profits are affected by temporary setbacks, making it a good metric for large industrial or aerospace businesses recovering from downturns.

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Growth expectations and perceived risks play a big role in determining what makes a “normal” or “fair” P/S ratio. If a company is expected to grow quickly and operate with lower risk, it can justify a higher P/S multiple. On the other hand, slow growth or increased risks typically mean a lower justifiable multiple.

Boeing’s current P/S ratio stands at 1.83x. In comparison, the average for the wider Aerospace & Defense industry is 2.98x, while its closest peers average around 2.00x. At first glance, Boeing may look relatively inexpensive based on these benchmarks alone.

However, Simply Wall St’s proprietary “Fair Ratio” gives a more nuanced view. Calculated by factoring in Boeing’s growth outlook, risk profile, profit margin, industry positioning, and market cap, it goes further than a simple comparison to peer or industry averages. Boeing’s Fair Ratio is 1.98x, which is almost exactly in line with its current P/S multiple.

Given the narrow gap between the actual and Fair Ratio, Boeing’s valuation appears quite reasonable using this approach.

Result: ABOUT RIGHTNYSE:BA PS Ratio as at Nov 2025

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1404 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Boeing Narrative

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your personal story or perspective about a company, bringing together your view of Boeing's business prospects, including assumed fair value and estimated future revenue, earnings, and margins. This approach anchors the numbers to a story you believe in.

Narratives link Boeing’s real-world context, such as its aircraft backlog, supply chain challenges, and industry shifts, to financial forecasts and then to a personalized fair value. On Simply Wall St’s Community page, millions of investors use Narratives as an easy, accessible tool to map out and update their investment thinking.

Instead of relying solely on static ratios, Narratives help you decide when to buy or sell by comparing your fair value with the current share price, making decisions clearer and more actionable. As major company news, earnings releases, or market developments occur, Narratives update dynamically so your investment thesis evolves with the latest data.

For example, some Boeing investors see robust air travel demand and a $500+ billion order backlog translating to long-term value above $287, while others focus on production delays and high debt, estimating fair value closer to $150. Both stories (and price targets) live side by side, empowering you to choose the Narrative that best fits your view.

Do you think there's more to the story for Boeing? Head over to our Community to see what others are saying!NYSE:BA Community Fair Values as at Nov 2025

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BA.

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