Debating what to do with Boeing stock? You’re not alone. With its share price ending last session at $221.35 and a strong rally over the past year, investors are buzzing as they consider whether to add, hold, or even take profits. Over the last twelve months, Boeing has delivered a stellar 42.8% return, and so far in 2024, it’s up nearly 29%. That is no fluke; in just the past week, the stock climbed 3.9%. Even looking further back, Boeing has been on a long-term recovery arc, returning over 53% in both the last three and five years.
Much of this momentum comes as the aviation industry navigates a tricky but promising landscape. Recent headlines point to rising airline demand and progress on resolving manufacturing delays, both of which have helped reshape risk perception around Boeing’s prospects. Investors have also reacted favorably to announcements about expanded partnerships and moves to improve production oversight, signifying more confidence in the company’s ability to deliver on its pipeline.
So, how does Boeing stack up on valuation? When we score the stock across six key checks for undervaluation, it comes in at 3 out of 6. That is not a screaming bargain, but it is no red flag either. Different approaches to valuation inevitably tell different stories, so which is most reliable for today’s market? Next, we will break down what each method reveals, and later share an even smarter way to put those numbers in perspective.
Boeing delivered 42.8% returns over the last year. See how this stacks up to the rest of the Aerospace & Defense industry.
The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s value using a required rate of return. This method gives investors a sense of what the business is worth based on its ability to generate cash over time.
For Boeing, the most recent free cash flow over the last twelve months is negative at $8.1 Billion. However, analysts anticipate a significant turnaround and forecast free cash flow to rise to $12.8 Billion by 2029. While direct analyst estimates only extend a few years ahead, Simply Wall St extrapolates these further by projecting steady growth in Boeing’s cash generation through 2035.
Based on these projections, the DCF analysis arrives at an intrinsic value of $319.00 per share. With Boeing’s current price at $221.35, this suggests the stock is trading at a substantial discount of around 30.6% relative to its estimated true value.
In summary, the DCF approach points to Boeing being meaningfully undervalued at present, largely due to anticipated growth in cash flows and long-term industry dynamics favoring recovery.
Result: UNDERVALUED
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Boeing.
BA Discounted Cash Flow as at Oct 2025
Our Discounted Cash Flow (DCF) analysis suggests Boeing is undervalued by 30.6%. Track this in your watchlist or portfolio, or discover more undervalued stocks.
The Price-to-Sales (P/S) ratio is a widely used valuation metric, especially for companies like Boeing where consistent profitability can fluctuate due to industry cycles or periods of heavy investment. The P/S ratio evaluates the company’s market valuation compared to its revenue, making it a practical tool for businesses where earnings may be temporarily depressed but underlying sales remain robust.
Growth prospects and perceived risks both play a role in determining what counts as a “normal” or “fair” P/S ratio. Companies with higher expected growth rates or lower risk usually command higher multiples. In contrast, slower growers or riskier ventures might trade at a discount. Comparing Boeing, its current P/S ratio stands at 2.22x. For context, the average for its peers is 2.08x, and the wider Aerospace & Defense industry average is even higher at 3.15x.
This is where Simply Wall St’s proprietary “Fair Ratio” comes in. By incorporating Boeing’s unique growth outlook, profit margins, industry, market capitalization, and risk profile, the Fair Ratio offers a much more personalized benchmark. For Boeing, the Fair Ratio is 1.92x. This tailored figure gives investors a more meaningful yardstick than standard peer or industry averages, as those do not fully capture company-specific strengths and weaknesses.
Comparing Boeing’s actual P/S ratio of 2.22x to the Fair Ratio of 1.92x, the difference is not huge but does suggest the stock is trading slightly above what would be expected based on its fundamentals and outlook.
Result: OVERVALUED
NYSE:BA PS Ratio as at Oct 2025
PS 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 there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your own story behind a stock’s numbers, letting you express what you believe about Boeing’s future by tying your assumptions for growth, profits, and fair value to the underlying business realities.
Rather than seeing a company as just a set of figures, Narratives allow users to connect real-world events, strategic moves, or industry changes directly to financial forecasts. This makes valuation more personal, dynamic, and meaningful. Anyone can access Narratives on Simply Wall St’s Community page, where millions of investors create and update their perspectives as news and data change. No advanced knowledge is needed; the platform guides you through building a fair value based on your own expectations or following others’ insights.
Narratives give you greater context for your buy, hold, or sell decisions by constantly comparing your defined Fair Value with Boeing’s current share price. For example, some investors using Narratives see Boeing’s fair value above $287 per share if they expect strong air travel demand and margin gains, while others set it as low as $150 if risks around debt, supply chains, or regulatory challenges dominate their outlook. Narratives update in real time as new developments emerge, so your investment decisions always reflect the latest facts and your personal view.
Do you think there’s more to the story for Boeing? Create your own Narrative to let the Community know!
NYSE:BA Community Fair Values as at Oct 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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