This leaves the company trading for a price-to-free cash flow ratio of about 14.4. Admittedly, that’s a better number than the “infinity-times-earnings” P/E, which results from General Dynamics Corporation (NYSE:GD)’ lack of GAAP profits. But it’s still a high price to pay for a company that analysts say will grow at only 6.2% per year over the next five years.
So while the company certainly beat expectations, and did a lot better than it might have done in a sequester environment … it’s still not a particularly attractive-looking investment.
The article General Dynamics Beats on Earnings yet Still Disappoints originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics.
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