Boeing PE Ratio (BA): Current & Historical Data

What Is Boeing PE Ratio? A Complete Investor Guide

The Price-to-Earnings (PE) Ratio is one of the most widely used valuation metrics in the financial world. It allows investors to assess how much the market is willing to pay today for a dollar of Boeing's earnings. For a company like Boeing Co. (NYSE: BA), which operates in the complex and capital-intensive sectors of aerospace, defense, and space exploration, the PE ratio brings insights into investor expectations, future earnings potential, and market sentiment.

✅ What Exactly Is the PE Ratio?

Understanding the PE ratio begins with its formula and significance:

✅ Why It Matters for Boeing Investors

For a cyclical, innovative giant like Boeing, the PE ratio is a useful valuation tool and a window into:

• Earnings Stability: A stable or growing PE ratio often reflects how well the company has navigated hurdles like production delays or regulatory issues.
• Market Confidence: During crises, the PE ratio often skyrockets as EPS collapses. This can reflect investor belief in a strong future comeback.
• Relative Valuation: Investors compare Boeing's PE with rivals like Airbus, Lockheed Martin, and Raytheon to judge if it is over or undervalued.

✅ Types of PE Ratios Used for Boeing

Note: For Boeing, the forward PE tends to be examined more than the trailing one, especially during years of weak or negative earnings.

Boeing (BA) PE Ratio Today: June 2025 Update

Boeing Co. (NYSE: BA) was worth just shy of $200.3 a share in mid-June 2025. This makes for a disheveled view of the company's price-to-earnings (PE) ratio, a key metric investors use to measure valuation.

🔍 Current PE Snapshot: Mixed Package

Also Read: Google (Alphabet) PE Ratio 2025: Historical Chart, TTM

💡 What Does It Mean for Investors?

Understanding Boeing's PE in June 2025 requires nuance:

• Positive Implications: A forward PE of 36.9× suggests strong investor confidence in Boeing's future earnings.
• Cautionary Signals: The negative trailing PE shows Boeing hasn't fully recovered. The forward valuation is high against historical averages, meaning much optimism is already priced in.

Historical Boeing PE Ratio Trends (2010–2025) Exposed

Boeing's Price-Earnings ratio experienced infamous ups and downs over the past 15 years, paralleling an era of innovation, turmoil, and major industry turning points. Let's break down the historical PE trends from 2010 to 2025.

🕰️ PE Ratio Timeline: 2010 to 2025

📈 Three Distinct Phases in Boeing's PE Journey

• 🟢 Phase One: Growth & Stability (2010–2018): Characterized by notable earnings growth and constant demand, PE ratios were stable between 14x and 26x, reflecting strong investor confidence.
• 🟠 Phase Two: Crisis & Collapse (2019–2021): The 737 MAX crisis and COVID-19 pandemic led to massive losses, pushing the PE ratio to spike above 50x before turning negative for two consecutive years.
• 🟢 Phase Three: Recovery & Realignment (2022–2025): Forward PEs became the focus. By 2025, Boeing trades at a high forward PE (~36.9×) based on recovery optimism, while the trailing PE remains negative.

Investor Insights from PE Trends

• ✅ PE ratios are driven by a company's ability to sustain profitability.
• ✅ Boeing's negative PE during downturns is not rare for cyclical firms. More telling is how fast forward PE adjusts to sentiment.
• ✅ The pre-crisis historical average PE (2010-2018) of around 18-22× serves as a healthy baseline for comparison.

How Does Boeing's Earnings Influence Its PE Ratio So Severely

Boeing's PE ratio is highly reactive to changes in its earnings. The cyclical nature of its business, combined with high fixed costs, leads to dramatic swings that investors must understand.

💼 1. A Peak-and-Trough Business

Revenue generation depends on global aircraft demand and defense budgets. Earnings can grow rapidly during peaks but can collapse just as quickly during crises like the COVID-19 pandemic or the 737 MAX grounding.

🧾 2. Sky-high Costs Create Volatile Profits

Boeing has massive fixed costs for R&D, manufacturing, and compliance. During a delivery freeze, these costs can quickly turn profits into losses, causing extreme PE ratio volatility.

💹 3. Falling Earnings = Artificially High PE

In 2019, as EPS collapsed due to the 737 MAX grounding, the stock price remained steady for months. This caused the PE ratio to spike, making the company appear "expensive" due to plunging earnings, not a rallying stock price.

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🔮 4. Forward PE Reflects Hope, Not Results

When trailing EPS is negative, investors focus on forward PE. For Boeing, the forward PE can remain high during recovery periods as the market prices in future growth potential well before it appears in financial results.

⚠️ 5. One-Time Shocks Distort Annual EPS

A single event like an airplane grounding, lawsuits, or a pandemic can wipe out an entire year of profit, making the TTM PE for that year unreliable or misleading.

💡 Takeaway for Investors

Boeing’s PE ratio is highly reactive. Investors must prioritize forward PE during recovery, alongside analysis of cash flow, order book strength, and industry signals, rather than relying solely on traditional PE metrics like the EV/EBITDA ratio.

Boeing vs. Industry PE Ratio: Who's Undervalued?

Comparing Boeing's PE ratio with those of the broader aerospace and defense industry is a crucial assessment. This relative analysis helps investors decide if Boeing is undervalued, overvalued, or fairly priced compared to its peers.

PE Ratio Comparison Table (As On June 2025)

Peer Forward PE Comparison (June 2025)

📘 Is Boeing Undervalued or Overvalued?

• Overvalued (Forward PE View): Boeing's forward PE of 36.9x is well above the industry norm (~22x), implying rich expectations are priced in.
• Fairly Valued (Contextual View): If Boeing meets its aggressive earnings growth targets, its high valuation may be justified by its potential.
• Undervalued (Long-Term Turnaround View): If the recovery accelerates and margins return to pre-crisis levels (2017-2018), the current price may look cheap in hindsight.

💡 Key Takeaway

Boeing is not a "cheap stock" based on its forward PE. Its valuation reflects high expectations for a commercial aviation comeback. Investors must consider their risk appetite and time horizon before deciding if Boeing represents genuine long-term value.

Expert Forecasts: Boeing PE Ratio Prediction for 2026

As Boeing continues its recovery, investors and analysts are closely watching its forward PE ratio. By 2026, analysts anticipate Boeing will be fully profitable, which will dramatically affect its valuation multiples.

🔍 2026 EPS Forecasts: What the Experts Are Saying

Major brokerage firms and research platforms have shared their forecasts for Boeing's 2026 earnings:

• Analyst Group A estimates EPS at roughly $3.36.
• Analyst Consensus B suggests EPS could rise to about $4.40.
• Research Platform C implies a forward PE of 39.3x based on their estimates.

Though precise numbers differ, the consensus is that earnings will improve, and the PE ratio will normalize into a still-elevated range.

Forecasted 2026 PE Ratio Range (Implied)

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🛫 Why PE Estimates Remain Elevated Despite a Recovery

The market is looking beyond today's earnings to Boeing's future potential. The high valuation multiples are supported by expectations of:

• Strong growth in free cash flows.
• The eventual resumption of dividends.
• Lower debt levels over time.

Investor Verdict: Is It Justified?

The high PE reflects aggressive optimism. While the recovery is projected, it is not guaranteed. Boeing’s forward PE remains higher than peers like Airbus and Lockheed Martin, signaling both higher growth expectations and higher valuation risk. Consistent improvement in cash flow will be crucial to justifying the premium.

How You Can Employ Boeing's PE Ratio in Your Stock Analysis

The PE ratio is a powerful valuation tool, but for a complex, cyclical company like Boeing, knowing how to interpret it is critical. For Boeing, always ask: "Is this PE based on current profits or future expectations?"

📊 3 Methods of Utilizing Boeing's PE in Analysis

1. Compare to Boeing's Historical PE: Looking at Boeing's past PE ratios (e.g., the 18x-24x range pre-crisis) helps you understand what's "normal" for the company.
2. Compare with Industry Peers: Relating Boeing’s PE to Airbus, Lockheed Martin, etc., helps you see how the market values it relative to its sector. A much higher PE signals a bet on a comeback but also higher risk.
3. Use Forward PE to Catch Signals: As Boeing's trailing earnings have been erratic, forward PE is more reliable. A declining forward PE can be a good sign (earnings improving faster than the stock price), while a rising one could be a warning.

🧮 When PE Can Entangle You (Especially with Boeing)

PE alone is not enough because:

• One-time charges or temporary losses distort the ratio.
• It doesn't reflect debt levels or cash flow.
• It doesn't account for macro risks (travel demand, defense budgets).

📌 PE Ratio: What Works For You

🔑 Key Takeaways:

Boeing's forward PE of 39×-60× shows the market is optimistic, but that optimism requires flawless execution. Dig deeper and never rely on the PE ratio in isolation.

❓ Frequently Asked Questions