BOEING CO

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 26▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Net income / market capitalization+5.63%; #1512/6340 (top 23.8%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio24.7x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value5.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.6%, ROC=42.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS69.2x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)126.4x

  ✗Dreman< 8x

  Price / Book Value per Share24.7x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=69.2x, OE Yield=0.9%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=69.2x, FCF Yield=-1.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=69.2x, P/B=24.7x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low101% of trailing low ($170.55)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.0482; #5012/6449 (top 77.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS69.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.36

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.6984; #2201/5247 (top 41.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+0.01%; #2533/4519 (top 56.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-25.81%; #4237/6202 (top 68.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 4▾

  BA overvalued: all 4 models price fair value below $171.50 (median $33.61)

  Graham fair value$19.69

  ✗Graham-771.0% margin vs $171.50

  Buffett fair value$33.65

  ✗Buffett-409.7% margin vs $171.50

  Pabrai fair value$33.58

  ✗Pabrai-410.7% margin vs $171.50

  Akre fair value$74.84

  ✗Akre-129.2% margin vs $171.50
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag BA's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $45.6B vs NCA $15.3B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 9.92, IC: N/A

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity7.01

  ✗Lynch< 0.33

  Cash - Long-term Debt$-36.1B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change34.30% -> 32.01%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.13

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity7.01

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels7.01

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=N/A (no interest expense), D/EBITDA=8.7x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity7.01

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-7.0139; #4116/4210 (top 97.8%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency13% pass✓ 3✗ 8▾

  7 of 8 flag BA's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.13

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-7.2%

  ✗Buffett> 10%

  ROIC - WACC-17.2%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)42.7%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.32 -> 1.19

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.43x -> 0.53x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.13

  ✗Dreman> 1.5

  Return on Invested Capital14.7%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-1.7%; FY2024: ROIC=-16.9%; FY2025: ROIC=5.7%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC14.0% (RR=95% x ROIC=14.7%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 5.7%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 NEUTRAL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)✗GreenblattRank #701•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✓AkrePASS (3/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)•SleepNEUTRAL (4/6)✗AsnessFAIL (Rank #1696/2370 (Top 71.6%))✗NeffFAIL (3/6)✗SchlossFAIL (0/7)✗OshaughnessyFAIL (Rank #905/963 (Top 94.0%))
• Profitability19% pass✓ 14✗ 21▾

  13 of 16 flag BA's profitability — Graham, Buffett, Lynch +10 more

  Net income / market capitalization+5.63%; #1512/6340 (top 23.8%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)12/18 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)12/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)867.0%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)4.8% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$2.2B

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE116.9%

  ✓Lynch> 15%

  EBIT / Enterprise Value5.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.6%, ROC=42.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets1.33%

  ✓PiotroskiROA > 0

  ROA Change YoY-7.56% -> 1.33% (delta: +8.89%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.63%, ROA=1.33%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY-3.0% -> 4.8%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue8.3%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity116.9%

  ✓Dreman> 12%

  Margin of SafetyP/E=69.2x, P/B=24.7x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity1212.4% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency12/18 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue10.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity116.9%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-1.0% (2023) -> 4.8% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 9.9% -> 4.8%, operating margin -1.0% -> 4.8%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+5.24%; #3088/3702 (top 83.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+116.94%; #65/5226 (top 1.2%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0289; #1859/5884 (top 31.6%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR24.5% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years4/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth25% pass✓ 5✗ 8▾

  6 of 8 flag BA's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency12/18 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth16.8%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 9.9% -> 4.8%, operating margin -1.0% -> 4.8%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR9.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR24.5% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag BA's cash flow — Buffett, Piotroski, Dreman +3 more

  Free Cash Flow Proxy$2.2B

  ✗BuffettPositive and growing

  FCF Positive and Growing$16.0M

  ✓LynchPositive and growing

  Operating Cash Flow$1.1B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.63%, ROA=1.33%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)126.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=69.2x, FCF Yield=-1.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive12/18 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap0.0%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency13/18 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$16.0M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+0.01%; #2533/4519 (top 56.1%)

  ✗OshaughnessyTop 10% of eligible cross-section