🛡️ BAE Systems PLC: Defence Giant with Global Reach
Founded in 1999, BAE Systems is a multinational defence, aerospace, and security company, headquartered in London. It’s one of the world’s largest defence contractors, with operations across 40+ countries and a workforce of over 107,000. Listed on the London Stock Exchange, BAE is a proud member of the FTSE 100.
📈 Share Price & Performance (as of 29 July 2025)
- Share Price: 1,834.0p
- 1 Day: -0.56%
- 1 Month: -3.70%
- Year to Date: +46.50%
Despite a recent dip, BAE has delivered strong year-to-date growth, reflecting investor confidence in the defence sector.
💰 Valuation Metrics
- P/E Ratio: 29.00
- Higher than the FTSE average, indicating premium pricing for consistent earnings.
- PEG Ratio: ~2.10
- Suggests that growth is priced in, typical for mature companies with stable cash flows.
💸 Dividend & Yield
- Dividend Yield: 1.78%
- Payout Ratio: ~48%
- Balanced between rewarding shareholders and reinvesting in innovation.
🧠 Conclusion
BAE Systems offers defensive stability with global exposure. While its PEG ratio is higher than EasyJet or ABF, its consistent earnings, strong ROE (18.14%), and robust order backlog make it a strategic pick for long-term portfolios, especially those seeking exposure to defence and aerospace.
