Is the BAE Systems share price good value at 525.4?

Bae Systems (LON:BA.) is a large cap defense, aerospace and security company. The Company operates through five segments: Electronics Systems, Cyber & Intelligence, Platforms & Services, Air, and Maritime. For the fiscal year ended 31 December 2018, BAE Systems plc revenues decreased 2% to £16.82B but net income before extraordinary items increased an impressive 29% to £995M

Right now the Bae Systems share price appears to represent reasonable value, as shown in the group's Value Rank of 54. Let's explore this in more detail.

Digging into Bae Systems's Value Rank

Looking at BAE Systems' StockReport, we can see that the group has a:

• Rolling price to book value of 3.02,
• Trailing twelve month price to earnings ratio of 14.7
• Trailing twelve month price to free cashflow of 23.8
• Rolling dividend yield of 4.34%
• Trailing twelve-month price to sales ratio of 1.00

This combination of financial traits suggests that, while Bae Systems stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with BAE Systems that you can find out about here.