RTX Corporation (RTX) DCF Valuation
Transparent DCF models put RTX Corporation (RTX)'s fair value in a range of $43.07 – $250.27 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $181.56 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $181.56, the market is pricing in roughly +20.5%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +37.8%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$181.56
Fair-Value Range
$43.07 – $250.27
Market-Implied Growth
+20.5%/yr
vs +37.8% 5Y actual
RTX DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $5.4B · 1.35B shares · net debt $30.5B
Estimated Fair Value
$43.07
-76.3% vs $181.56
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $181.56; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $59.01 | $63.20 | $68.15 | $74.08 | $81.34 |
| 9.0% | $47.50 | $50.36 | $53.66 | $57.51 | $62.07 |
| 10.0% | $38.72 | $40.76 | $43.07 | $45.70 | $48.74 |
| 11.0% | $31.83 | $33.32 | $34.99 | $36.86 | $38.99 |
| 12.0% | $26.27 | $27.39 | $28.63 | $30.01 | $31.54 |
About RTX Corporation
RTX Corporation, a major player in the aerospace and defense sectors, provides sophisticated systems and extensive services to a diverse global clientele. This includes commercial entities, military organizations, and government agencies, both within the United States and internationally. The company's operations are divided into three primary business units: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace segment delivers a broad range of aerospace and defense products, alongside comprehensive aftermarket support solutions. Its customer base spans manufacturers of civil and military aircraft, commercial airlines, and operators in regional, business, general aviation, defense, and commercial space ventures. This division's offerings cover the design, production, and maintenance of aircraft interior components, such as oxygen systems, food and beverage preparation and storage facilities, galley systems, and lavatory and wastewater management. It also supplies battlespace management tools, test and training range infrastructure, crew escape mechanisms, simulation and training programs, and essential information management services. Its post-sales services include providing spare parts, overhaul and repair, specialized engineering and technical assistance, training and fleet management, and integrated asset and information management. Pratt & Whitney, another core segment, is a leading provider of aircraft propulsion systems for commercial airliners, military aircraft, business jets, and general aviation. This division is also responsible for manufacturing, selling, and maintaining auxiliary power units for both military and commercial applications. Finally, the Raytheon segment specializes in creating advanced capabilities for the detection, tracking, and mitigation of both defensive and offensive threats. Its tailored solutions serve the U.S. government, foreign governments, and various commercial customers. Established in 1934, the company was formerly known as Raytheon Technologies Corporation before officially rebranding as RTX Corporation in July 2023. RTX Corporation maintains its corporate headquarters in Arlington, Virginia.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- CEO
- Christopher T. Calio