How does BWXT's valuation (P/E, EV/EBITDA, price-to-book) compare to peers in the nuclear and defense sectors?
Answer
The press release you quoted reports BWX Technologiesâ (tickerâŻBWXT) secondâquarter 2025 operating results, but it does not include any valuation multiplesâsuch as priceâtoâearnings (P/E), enterpriseâvalueâtoâEBITDA (EV/EBITDA) or priceâtoâbook (P/B)âfor either BWXT or its competitors. Consequently, a direct, dataâdriven comparison to peers in the nuclearâenergy and defenseâequipment sectors cannot be performed using only the information in the news release.
Below is a stepâbyâstep outline of how you can obtain the needed figures and conduct a meaningful peerâgroup analysis:
1. Gather the Required Valuation Data
Metric | How to source it | Typical dataâprovider notes |
---|---|---|
P/E (priceâtoâearnings) | ⢠Current share price á trailing twelveâmonth (TTM) net earnings per share. ⢠Use Bloomberg, Refinitiv (formerly ThomsonâŻReuters), FactSet, S&P Capital IQ, or free sites such as YahooâŻFinance, MarketWatch, or Nasdaq. |
Ensure the earnings figure is GAAP net income (or use the nonâGAAP net income if you want a âadjustedâ P/E). |
EV/EBITDA | ⢠EV = marketâcap + total debt â cash & equivalents. ⢠EBITDA = earnings before interest, taxes, depreciation & amortization (TTM). ⢠Sources: Bloomberg, FactSet, S&P Capital IQ, or the companyâs 10âK/10âQ filings for balanceâsheet and incomeâstatement details. |
Use the same EBITDA definition (GAAP vs. adjusted) across all companies for consistency. |
PriceâtoâBook (P/B) | ⢠Share price á book value per share (shareholder equity á shares outstanding). ⢠Data available on Bloomberg, FactSet, or the âKey Ratiosâ tab on YahooâŻFinance. |
Book value should be taken from the most recent balanceâsheet (quarterly or annual). |
2. Identify a Relevant Peer Group
Because BWXT operates at the intersection of nuclearâenergy services and defenseâgovernment contracts, youâll want to include companies from both clusters:
Nuclearâfocused peers (U.S.) | Defenseâgovernmentâcontract peers (U.S.) |
---|---|
Orano (ORANO) â nuclear fuel & services (though European, often used as a benchmark) Centrus Energy (CET) â nuclear fuel & services Fluor Corp. (FLR) â nuclear engineering & construction (defenseârelated) |
Lockheed Martin (LMT) â major defense contractor Northrop Grumman (NOC) â defense systems Raytheon Technologies (RTX) â defense & aerospace General Dynamics (GD) â defense & aerospace Leidos (LDOS) â defense IT services |
When you build the peer set, try to keep the *revenue size** and governmentâcontract exposure similar to BWXT (i.e., companies with >âŻ$1âŻbn annual revenue and âĽâŻ30âŻ% of sales to U.S. government contracts).*
3. Compute the Ratios for BWXT and Peers
Below is a template you can fill in once you have the raw numbers:
Company | P/E (TTM) | EV/EBITDA | P/B |
---|---|---|---|
BWXT | =Current price / TTM EPS |
=EV / TTM EBITDA |
=Current price / Bookâvalue per share |
LockheedâŻMartin (LMT) | ⌠| ⌠| ⌠|
NorthropâŻGrumman (NOC) | ⌠| ⌠| ⌠|
GeneralâŻDynamics (GD) | ⌠| ⌠| ⌠|
CentrusâŻEnergy (CET) | ⌠| ⌠| ⌠|
Fluor Corp. (FLR) | ⌠| ⌠| ⌠|
If you prefer a *median** or average of the peer group, calculate those as well to see where BWXT stands relative to the âtypicalâ peer valuation.*
4. Interpreting the Results
Scenario | What it suggests about BWXT |
---|---|
P/E lower than peers | The market may be pricing BWXTâs earnings more conservativelyâpotentially due to perceived higher cyclicality, longer project leadâtimes, or greater exposure to regulatory risk. |
P/E higher than peers | Investors are assigning a premium, perhaps because BWXTâs recent backlog growth, strong governmentâcontract pipeline, or higher margins are viewed as more sustainable than in the broader sector. |
EV/EBITDA below peers | BWXT could be considered âundervaluedâ on an operatingâcashâflow basis, indicating attractive acquisition potential or a cheaper entry point relative to cashâgenerating ability. |
EV/EBITDA above peers | The market may be betting on higher future growth or superior margin expansion (e.g., from the record backlog mentioned in the release). |
P/B below peers | The market is valuing BWXTâs net assets conservativelyâcommon for capitalâintensive firms where book value can be inflated by legacy plant and equipment. |
P/B above peers | A premium on the companyâs tangible assets, possibly reflecting the strategic importance of its nuclear facilities and the âstrategicâ nature of its defense contracts. |
5. Example (Illustrative) Numbers (as of a hypothetical date)
Company | P/E | EV/EBITDA | P/B |
---|---|---|---|
BWXT | 12.5x | 7.2x | 1.8x |
LockheedâŻMartin | 15.0x | 9.5x | 2.3x |
NorthropâŻGrumman | 14.2x | 8.8x | 2.1x |
GeneralâŻDynamics | 13.8x | 9.0x | 2.0x |
CentrusâŻEnergy | 10.0x | 6.5x | 1.5x |
Fluor Corp. | 11.5x | 7.0x | 1.7x |
In this illustrative set, BWXTâs valuation sits *below** the large defense peers on all three multiples, but above the pureâplay nuclear peers (Centrus, Fluor). This would imply that BWXT is priced more like a midâsize defense contractor than a niche nuclearâservices firmâconsistent with the managementâs comment about ârecord backlogâ across both governmentâoperations and commercial segments.*
Takeaway: If the realâworld data mirrors the illustration, BWXT may be relatively inexpensive relative to the broader defense sector (potentially a buying opportunity) while still commanding a premium over pure nuclearâservices peers, reflecting its diversified revenue mix and strong government contract pipeline.
6. How to Obtain the Data Quickly (if you lack a premium terminal)
- YahooâŻFinance â Search âBWXTâ. Under âStatisticsâ youâll find P/E, P/B, and âEnterprise Value/EBITDAâ.
- Macrotrends â Provides historical P/E and EV/EBITDA charts for many U.S. equities.
- SEC Filings â The 10âK (or 10âQ) contains the balance sheet (for book value) and the cashâflow statement (for EBITDA).
- Google Finance â Quick snapshot of P/E and P/B.
- Finviz â Offers a âvaluationâ snapshot for most tickers, including EV/EBITDA.
Once you have the three ratios for BWXT, repeat the same steps for each peer and compile them in a spreadsheet for sideâbyâside comparison.
7. Final Recommendation
- Collect the latest marketâprice and financialâstatement data for BWXT and the selected peer group.
- Calculate the three multiples using the same fiscal period (TTM is standard for P/E and EV/EBITDA; book value should be the most recent quarter).
- Benchmark BWXT against the median/average of the peer set to gauge relative valuation.
- Interpret the spread in the context of BWXTâs recent operational highlights (record backlog, strong governmentâoperations performance) and any sectorâspecific risk factors (e.g., nuclearâregulatory exposure, defenseâbudget cycles).
If you need a readyâmade spreadsheet or a quick snapshot for a specific date, let me know the date and the data source you prefer (e.g., Bloomberg, YahooâŻFinance), and I can walk you through pulling the numbers or even generate a sample table based on publicly available data.