26 May 2026

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BAE Systems PLC (BAES)

Rank #51 of 100 - Industrials - UK Equities

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BAE Systems PLC

BAES.L·Industrials·Market Cap £57.8b

Rank #51 of 100

Data from Excel Model · 100 Stocks Analysed

£19.42

+12.37% YTD

Target: £23.04(+18.6%)

52W: £15.88 - £23.60

Score Analysis

BAE Systems PLC is ranked #51 out of 100 UK stocks. Lower factor scores indicate better performance in that category.

Factor Breakdown

52/100

Average Score

Liquidity

Fair52/100

Valuation

Weak94/100

Profitability

Fair49/100

Solvency

Fair56/100

Asset Efficiency

Fair41/100

Mkt Trading

Excellent12/100

Technical

Weak61/100

1. Valuation

Score: 94/100

Is BAES undervalued compared to its peers and fair value metrics?

0/5

valuation criteria met

✗

FY26e P/E Ratio

22.9xRank 86/100

✗

FY27e P/E Ratio

20.1xRank 88/100

✗

Price-to-Book

4.37xRank 69/100

✗

Price-to-Tangible Book

N/ARank 101/100

✗

EV/EBITDA

14.8xRank 77/100

Key Valuation Metrics

Current P/E

28.3x

Price-to-Earnings

FY26e P/E

22.9x

Forward estimate

FY27e P/E

20.1x

Forward estimate

P/B Ratio

4.37x

Price-to-Book

P/TBV

N/A

Price-to-Tangible Book

EV/EBITDA

14.8x

Enterprise Value

FY26e EV/EBITDA

13.1x

Forward estimate

FY27e EV/EBITDA

13.1x

Forward estimate

Analyst Consensus Target

Current Price

£19.42

Consensus Target

£23.04

Potential

+18.6%

Target

Bloomberg Median Target: £23.09

2. Profitability

Score: 49/100

How profitable is BAES relative to its peers?

1/6

profitability criteria met

✓

TTM Profit Margin

7.6%Rank 33/100

–

Current ROE

17.6%

–

Current ROA

N/A

✗

FY26e EPS

0.95Rank 42/100

–

TTM EPS

0.88

–

Net Income Growth

N/A

Profit Margin

7.6%

ROE

17.6%

FY27e ROE

21.8%

ROA

N/A

Earnings Per Share

3. Financial Health

Score: 56/100

How strong is BAES's balance sheet and financial position?

1/4

solvency criteria met

–

Debt-to-Equity

75.0%

–

Interest Coverage

N/A

✓

Debt/EBITDA

Rank 38Rank 38/100

–

Altman Z-Score

2.52

Key Health Metrics

Quick Ratio

0.87

Below 1.0

Cash Ratio

0.99

Debt/Equity

75%

FCF Margin

0.6%

Altman Z-Score

2.52

Grey Zone

01.812.995+

4. Asset Efficiency

Score: 41/100

How efficiently does BAES deploy its assets and intellectual capital?

1/2

asset efficiency criteria met

–

Intangible/Asset

Intangible assets as a proportion of total assets — lower indicates more tangible, capital-efficient operations

N/A

✓

R&D/Sales

Research & development spend relative to revenue — balanced R&D investment signals sustainable growth

Rank 17/100

Overall Asset Efficiency Rank

Rank within sector peers#41/100

Best (1)Worst (100)

What This Measures

Intangible/Asset — a lower ratio suggests the company's value is backed by tangible assets rather than goodwill or intangibles, reducing balance sheet risk.

R&D/Sales — captures the proportion of revenue reinvested into research and development, indicating innovation intensity and future growth investment.