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US Equities · Finance research note

BA — Boeing

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 1.71%
Profit Margins 2.46%
Return on Equity 169.95%
Return on Assets -2.07%
Free Float 0.76B
Short Int % Utilisation 0.07%

2.2 Growth

Metric Value
Revenue Growth 14.0%
Free Cash Flow 2.55B
EBITDA -59.59 (Ratio)
Enterprise Value 194.2B
EV/Revenue 2.11
EV/EBITDA -59.59

Revenue growth of 14.0% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 4.16%
Risk / Std Dev (Ann.)* 33.76%
1-Year Price Return* -1.53%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $231.67
52-Week Range $176.77 – $254.35
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $89.46B $66.52B
Net income Reported net income $1.89B $-11.88B
Total assets Year-end reported balance $168.24B $156.36B
Shareholders’ equity Year-end reported balance $5.45B $-3.91B
Net margin Net income ÷ revenue 2.11% -17.85%
Asset turnover Revenue ÷ total assets 0.5318x 0.4254x
Equity multiplier Total assets ÷ shareholders’ equity 30.8462x -40.0110x
ROE Net margin × asset turnover × equity multiplier 34.64% 303.86%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $89.46B
Prior annual revenue $66.52B
EBIT $5.41B
Tax rate 15.07%
NOPAT = EBIT × (1 − tax rate) $4.59B
Forecast start-growth basis 15.00%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $4.59B
Add: depreciation & amortisation $1.95B
Less: capital expenditure -$2.95B
Less/(add): working-capital cash-flow movement -$1.00B
Current unlevered FCFF $2.59B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 15.00% $5.28B $2.25B -$3.39B -$1.15B $2.98B $2.84B
2 11.88% $5.91B $2.51B -$3.48B -$1.29B $3.66B $3.18B
3 8.75% $6.42B $2.73B -$3.43B -$1.40B $4.32B $3.43B
4 5.62% $6.79B $2.89B -$3.25B -$1.48B $4.94B $3.56B
5 2.50% $6.96B $2.96B -$2.96B -$1.52B $5.44B $3.58B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.22
Cost of equity 11.43%
Pre-tax cost of debt 5.10%
WACC 9.76%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $76.76B
Implied terminal EV / EBITDA 6.89x
Terminal value as % of enterprise value 74.39%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $16.59B
Present value of terminal value $48.18B
Indicated enterprise value $64.77B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $64.77B
Less: gross interest-bearing debt $54.43B
Add: cash and equivalents $29.40B
Add: affiliate investments $0.00
Less: minority interests $3.00M
Indicated common equity value $39.73B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 762,300,000.00
Share-count basis reported diluted weighted-average shares
Current market price $224.27
DCF indicative value per share $52.12
Indicative value vs. market price -76.76%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 1/4 evidenced checks
Lynch-inspired balance-and-growth checks 1/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:23:53.246729 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -23.14% -25.05%
Adjusted R² 0.20 0.20
Annualised residual volatility 29.18% 29.07%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.12 (6.50) 1.08 (5.48)
Size (SMB) 0.14 (0.58) 0.02 (0.08)
Value (HML) 0.04 (0.20) -0.06 (-0.24)
Profitability (RMW) NM -0.21 (-1.02)
Investment (CMA) NM 0.36 (1.00)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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