
84.38 USD (+22.8%)
13 analysts
What does it do?
Booz Allen Hamilton is a management and technology consulting firm providing defense, intelligence, and national security services, primarily to the US government.
Key points
from its scores- ✓Favourable backdrop8.2
- ✓Attractive valuation8.1
- ✓Attractive dividend7.7
- ✕Poor share-price trend1.8
- ✕Weak growth2.1
AI analysis
bottom line, main risk, context and newsThe valuation is attractive but the deteriorating growth and negative momentum justify waiting for a stabilization in results before taking a position.
Booz Allen Hamilton shows moderate financial health (net debt/EBITDA of 2.88) and solid quality metrics (ROE of 68.64%), but its growth is negative (revenue -4.2%, earnings -24.5%), leading to an attractive valuation (P/E 10.80) and very weak momentum (19th percentile in 52 weeks).
Dependence on US government contracts and the recent decline in revenue and earnings (-24.5%) are the main risks, as a reduction in federal defense spending or the loss of a key contract could prolong the downturn.
Context and risks
Booz Allen Hamilton is a leading defense and intelligence contractor for the US government. Its business depends on the continuity of federal defense spending and contract awards, exposing it to budget cycles and intense regulatory scrutiny. The recent decline in revenue and earnings reflects the inherent volatility of its government contract portfolio.
Is Booz Allen Hamilton stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 46% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.8 | 25.4 | −58% |
| EV / EBITDA | 9.5 | 14.5 | −35% |
| Price / book | 6.9 | 4.1 | +70% |
| Price / sales | 0.7 | 2.1 | −64% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.1 out of 10 (median for Industrials: 5.0).
Average analyst target: 84.38 USD, +22.8% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.5 (sector 6.4), Growth 2.1 (sector 6.6).
Classic formulas with standard assumptions (5.6% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 10.8
- Forward P/E
- 10.2
- EV / EBITDA
- 9.5
- Price / book
- 6.9
- Price / sales
- 0.7
- PEG
- 1.09
- Market cap
- 8.3B USD
- Enterprise value
- 11.9B USD
Profitability
- ROE
- 68.6%
- ROA
- 9.2%
- ROIC (approx.)
- 20.6%
- Gross margin
- 22.4%
- Operating margin
- 10.0%
- Net margin
- 7.0%
- Free cash flow
- 860.9M USD
- FCF yield
- 10.4%
- Cash conversion
- 69%
Solvency
- Total debt
- 4.2B USD
- Net debt
- 3.6B USD
- Cash
- 540.0M USD
- EBITDA
- 1.3B USD
- Net debt / EBITDA
- 2.88
- Debt / equity
- 346.09
- Current ratio
- 1.59
- Quick ratio
- 1.50
Growth
- Revenue growth
- −4.2%
- Earnings growth
- −24.5%
- EPS (TTM)
- 6.36 USD
- EPS (forward)
- 6.71 USD
Dividend
- Dividend yield
- 3.4%
- Payout
- 35.8%
Risk and market
- Beta
- 0.37
- Analyst consensus
- Hold (13)
- Target price
- 84.38 USD
- 52-week range
- 59.50 – 109.10
Recent news
All BAH news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Booz Allen Hamilton
Is Booz Allen Hamilton stock cheap or expensive?
On P/E and EV / EBITDA, it trades 46% below the Industrials median on average. Valuation score: 8.1 out of 10 (median for Industrials: 5.0). Average analyst target: 84.38 USD, +22.8% versus the price. This is not investment advice.
What score does Booz Allen Hamilton get on MeridIAn Screener?
It scores 6.2 out of 10, rank 788 of 2,130 (better than 60% of the companies analysed). Its strongest category is Risk & Context (8.2) and its weakest, Momentum (1.8). Analysis of 08/10/2026.
What is Booz Allen Hamilton's P/E ratio?
Its P/E is 10.8: the share price equals 10.8 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 10.2.
How much is Booz Allen Hamilton worth on the stock market?
Its market capitalisation is 8.3B USD and its enterprise value, debt included, is 11.9B USD.
How much debt does Booz Allen Hamilton have?
Its net debt (debt minus cash) is 3.6B USD. That is 2.88 times its EBITDA; the Industrials median is 1.58.
Does Booz Allen Hamilton pay a dividend?
Yes: its dividend yield is 3.44% and it pays out 36% of its earnings.
How has Booz Allen Hamilton stock performed over the last year?
It has fallen 27.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 59.50 and 109.10 USD. Past performance does not guarantee future results.
What do analysts think of Booz Allen Hamilton?
13 analysts cover it; their average recommendation is “Hold” and their average target is 84.38 USD (+22.8% versus the price). It is an estimate, not market data.
