Boeing Financial Analysis and Stock Price Valuation

Boeing is one of the world’s largest aerospace companies and is also the greatest manufacturer for the commercial jetliners and military aircrafts. The company also designs and produces the rotorcraft, missiles, electronic and defense systems, satellites, and launch vehicles. The company is also honored to be the major service provider to NASA and many other international space stations. The company is also in contract with many military as well as commercial airlines to support their services. There are more than 150 countries in which the services of Boeing are being used, making the company one of the larger exporters of the US to sale its items across the world.

The headquarters of the company is located in Chicago. The company has globally employed more than 170,000 people across the world, where more than 50% staff is working in the US. This makes the company as one of the largest aerospace service providers along with the diverse workforce that is making it possible for the company to grow by leaps and bounds.

The financial analysis of the Boeing shows that the company has been able to extract more than 30% revenues in the last 5 years. As has been recorded, the revenue of the company at the end of year 2008 was $60,909 million, whereas the revenues at the end of year 2012 were $81,698 million. Another careful analysis shows that the revenue of the Boeing Company rose from 2010 to 2011 and then from 2011 to 2012. When it comes to discussing the inventory stock that is available with the Boeing Company, we observe that the total inventory stock in the end of year 2008 was $15,612, and at the end of year 2012 it was $37,751. This means that the stocks have increased over the period of 5 years and hence it can be predicted that the Boeing stock price has also been stable over this period. The inventory reports of the company also suggest that the company’s inventory increased from 2010 to 2011 and then again increased from 2011 to 2012. The analysis of the investments made in the Boeing company since the last 5 years also suggests that the large number of individual investors have been interested to invest in the stocks of this company as they deem it more profitable. Since the supply of stocks increased, therefore we observe that the Boeing stock price lowered, which encouraged everyone to invest larger amounts of money.

Considering the current market situation, we can observe that the stock price of the Boeing will increase, as the difference in the price has been observed to be from $124 to $130 since the last 6 days. This trend really suggests the Boeing stock price to increase further. The reason might be any political news that has affected the airlines badly, or it could be any news from the internal sources that could have affected it. This is the reason that the percentage change observed in the price since the last 5 days of the Boeing stock price has been 5.57%. This is also a reflection of the perception of the investors that the stock of the company will give those profits at a later stage.

An estimate of the stocks of the Boeing Company shows that as the Boeing stock price increases, it will also make a greater impact on the stocks, as they will also increase. This is because of the recent trends that the people are buying more stocks and hence the price is increasing. Therefore, the stocks of Boeing are expected to further increase in the prospective future.

 

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