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Result: OVERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests RTX may be overvalued by 31.5%. Find undervalued stocks or create your own screener to find better value opportunities.

The Price-to-Earnings (PE) ratio is a popular metric for valuing profitable companies like RTX, because it tells investors how much they are paying for each dollar of current earnings. This makes it especially useful for companies in mature industries where profits are a key measure of value. A company’s PE ratio can look high or low depending on expectations for future growth and how risky investors perceive its earnings to be. Higher earnings growth or lower risk often justify a higher PE.

RTX currently trades at a PE ratio of 36.34x. For context, the average PE across the Aerospace and Defense industry is 39.61x, while its direct peers have an average PE of 27.62x. This puts RTX’s PE below the industry average but noticeably above the peer average, suggesting a middle-of-the-road position depending on which benchmark you prioritize.

Simply Wall St’s proprietary “Fair Ratio” takes this a step further by factoring in RTX’s growth projections, risk profile, profitability, industry, and market capitalization, and arrives at a fair PE of 34.31x for RTX. This tailored approach provides a much more complete picture than simply comparing RTX to broad industry or peer benchmarks, because it directly considers the characteristics unique to the business and sector dynamics.

Given that RTX’s current PE of 36.34x is very close to its Fair Ratio of 34.31x, the stock appears to be priced about right according to this metric.

Result: ABOUT RIGHT

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

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple yet powerful tool that allows you to share your perspective, the story you see behind the numbers, by making your own estimates for RTX’s future revenues, profit margins, earnings, and the fair value you believe those assumptions justify.

Narratives bridge the gap between a company’s story and a financial forecast, tying together your thesis about RTX’s prospects with concrete numbers and a fair value calculation. With Narratives on Simply Wall St’s Community page, millions of investors can easily build, update, or reference these forecasts as the latest news or earnings come in, ensuring your point of view always remains relevant.

Instead of relying solely on static analyst models or traditional valuation multiples, Narratives empower you to decide when RTX may be fairly valued by directly comparing your fair value estimate with the current share price. For example, some investors may project strong global defense spending and optimistic earnings growth, supporting a fair value of $180 per share, while others focus on headwinds and uncertainties, leading to a more cautious $134 per share. Each Narrative evolves dynamically as new data arrives, helping you make more informed, story-driven investment decisions.

Do you think there’s more to the story for RTX? Create your own Narrative to let the Community know!

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 RTX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Bitdeer Technologies Group recently announced unaudited operating results for September 2025, reporting that it mined 452 Bitcoins, a rise of approximately 20.5% from August, driven by increased self-mining capacity following the energization of SEALMINERs.

• This operating update comes as sector optimism grows, with attention on data center demand and AI-driven computing partnerships possibly benefiting industry players like Bitdeer.

• With Bitdeer’s self-mining gains and momentum in high-performance computing demand, we’ll assess how these developments affect the company’s broader investment narrative.

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To be a shareholder in Bitdeer Technologies Group, one needs to believe in the company’s ability to scale its self-mining capacity and commercialize its proprietary ASIC technology amid rising demand for high-performance computing. The recent news of a 20.5% increase in Bitcoin mined boosts short-term confidence, but it does not materially change the core catalyst, growing revenue and margins from ASIC commercialization, nor does it reduce the key risk of persistent losses and high operating expenses.

The September operating update most directly ties to the recent launch of the SEALMINER A3 series, which underpins Bitdeer’s growth in self-mining hashrate and supports the narrative around technological advancement improving capital efficiency. As Bitdeer pushes further into ASIC development and ramp-up, this connection highlights how delivering on technical improvements remains intertwined with realizing forecast revenue growth and addressing margin pressures.

However, despite these production gains, investors should not overlook the risk stemming from high operating expenses and ongoing losses, especially if future ASIC sales do not keep pace with growing costs…

Read the full narrative on Bitdeer Technologies Group (it’s free!)

Bitdeer Technologies Group’s narrative projects $1.8 billion revenue and $343.9 million earnings by 2028. This requires 71.6% yearly revenue growth and a $664.2 million increase in earnings from the current -$320.3 million.

Uncover how Bitdeer Technologies Group’s forecasts yield a $28.05 fair value, a 21% upside to its current price.

Seven individual fair value estimates from the Simply Wall St Community for Bitdeer span US$18.55 to US$324.62, highlighting a broad spectrum of conviction. With high expenses a persistent concern, you can explore how fellow investors weigh these risks before forming your outlook.

Explore 7 other fair value estimates on Bitdeer Technologies Group – why the stock might be worth 20% less than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Every day counts. These free picks are already gaining attention. See them before the crowd does:

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 BTDR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Aurora Innovation (AUR) shares have edged slightly higher recently, following a modest uptick of about 2% in the last day and smaller gains over the past week. Investors seem to be weighing the company’s performance during the month, as Aurora continues its work in autonomous vehicle technology.

See our latest analysis for Aurora Innovation.

Zooming out, Aurora Innovation’s 1-year share price return is still down double digits, while its three-year total shareholder return remains notably positive. After a recent stretch of modest gains, momentum is still searching for its footing as investors gauge the company’s long-term roadmap and evolving risk profile.

If Aurora’s recent moves have you reflecting on shifts across the sector, now is the perfect time to explore innovation on a broader scale through the See the full list for free.

With shares trading well below analyst price targets and impressive long-term gains in the rearview, investors now face a critical question: Is Aurora a bargain poised for growth, or is the market already factoring in its future potential?

At a price-to-book ratio of 4.8x, Aurora Innovation trades below its peer average of 5.9x based on this valuation measure. This suggests the stock is relatively more attractively priced compared to similar companies. With the last close at $5.15, this indicates the market is discounting Aurora relative to its book value more than its immediate peer group.

The price-to-book ratio compares a company’s market value to its net asset value. This metric is particularly relevant for asset-light and high-growth sectors like software and autonomous vehicles. For Aurora, this ratio reflects what investors are willing to pay for the company’s equity compared to the book value recorded on its balance sheet.

This valuation suggests investors may be skeptical about Aurora’s path to profitability or are discounting near-term challenges, despite the sector’s broader appetite for growth. However, the company’s price-to-book still remains higher than the US Software industry average of 4x. This signals the market may still be assigning a premium for its technology or future prospects relative to the average US software company, though less so compared to its closest peers.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 4.8x (UNDERVALUED compared to peers)

However, continued net losses and uncertainty around the company’s path to profitability remain challenges that could weigh on future share performance.

Find out about the key risks to this Aurora Innovation narrative.

While the price-to-book ratio offers one angle on Aurora’s value, the SWS DCF model provides a different perspective. According to our DCF analysis, Aurora shares are currently trading about 37.8% below our estimate of their fair value. This suggests a considerable undervaluation if you believe the model’s assumptions.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Aurora Innovation for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see the story differently or want to dig into the numbers yourself, you can craft your own take in just a few minutes with Do it your way.

A great starting point for your Aurora Innovation research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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 AUR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com