RTX

RTX CorporationIndustrials / Aerospace & DefenseINTACT

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.

Share Price
$198.05
52W: $155.64 - $226.88
DCF Fair Value
$122.69
-61.4% Premium
P/E (TTM)
34.8x
ROIC
9.5%
Operating Margin
12.7%
FCF Yield
3.7%
Debt / Equity
0.57x
Piotroski Score
6/9
Altman Z-Score
3.42
Market Cap
$266.9B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($122.69)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$122.69
MOS Buy Target (-25%)
$92.02
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$198.05
DCF Fair Value
$122.43
-61.8% Premium
$9,880M
$100M$9,880M (Reported)$50,000M
6.3%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$30,600M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$84.3B
PV of Terminal Value
$111.3B
Implied Enterprise Value
$195.6B
Implied Equity Value
$165.0B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$10,502$11,164$11,867$12,615$13,410$14,013$14,644$15,303$15,991$16,711
Present Value (PV)$9,635$9,397$9,164$8,937$8,715$8,356$8,011$7,680$7,363$7,059

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-149.4% Premium
$79.41

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.69BVPS: $49.25
Revised Graham Formula-110.9% Premium
$93.89

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings3.5% Yield
$6.96 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $9.4BYield: 3.5%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
9.6% CAGR (Next 10 Yrs)

At the current price of $198.05, the market is assuming the business will compound Free Cash Flow at 9.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil RTX with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for RTX Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 12.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: RTX Corporation (RTX) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for RTX Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, RTX Corporation has an estimated DCF intrinsic fair value of $122.69 per share compared to its current market price of $198.05. This represents an estimated 61.4% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $79.41.

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