| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 64.90 | -67 |
| Intrinsic value (DCF) | 63.39 | -67 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 89.30 | -54 |
The Boeing Company (BCO.DE) is a global leader in aerospace and defense, specializing in the design, development, manufacturing, and servicing of commercial jetliners, military aircraft, satellites, and space exploration systems. Headquartered in Chicago, Illinois, Boeing operates through four key segments: Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital. The company serves both commercial and government clients worldwide, offering a comprehensive portfolio that includes passenger and cargo aircraft, missile defense systems, and advanced digital services. Boeing's Commercial Airplanes segment remains a cornerstone of the aviation industry, while its Defense, Space & Security division plays a critical role in national security and space exploration. With a legacy dating back to 1916, Boeing continues to innovate in aerospace technology, though recent challenges in production and safety have impacted its financial performance. As a key player in the Industrials sector, Boeing's influence spans commercial aviation, defense contracting, and space technology, making it a pivotal company in global aerospace.
Boeing presents a high-risk, high-reward investment opportunity due to its dominant market position in aerospace and defense, coupled with significant financial and operational challenges. The company's revenue remains substantial (€66.5B in FY 2024), but persistent net losses (-€11.8B) and negative operating cash flow (-€12.1B) raise concerns. Boeing's high beta (1.405) indicates volatility, reflecting regulatory scrutiny, production delays, and debt burden (€54.2B). However, its diversified segments—Commercial Airplanes, Defense, and Global Services—provide resilience. The suspension of dividends underscores cash preservation efforts. Investors must weigh Boeing's long-term growth potential in commercial aviation recovery and defense contracts against near-term execution risks.
Boeing's competitive advantage lies in its entrenched position as one of the world's two dominant commercial aircraft manufacturers (alongside Airbus) and its stronghold in defense and space contracts. The company benefits from long-term customer relationships, government contracts, and technological expertise in aerospace. However, recent setbacks—including the 737 MAX crisis, supply chain disruptions, and quality control issues—have eroded its reputation and financial stability. Boeing's Defense segment provides stability with government-backed revenue streams, but budget constraints and competition from Lockheed Martin and Northrop Grumman pose challenges. In Commercial Airplanes, Airbus remains Boeing's primary rival, with superior recent order momentum. Boeing's Global Services segment is a growth area but faces competition from specialized MRO (Maintenance, Repair, Overhaul) providers. The company's ability to regain investor confidence hinges on resolving production bottlenecks, improving safety culture, and capitalizing on pent-up demand for narrow-body and wide-body aircraft.