Boeing Company

The fundamental analysis consists of describing the competitive forces in the industry including the company’s relative advantages and disadvantages to its competitors and a discussion on ROE as the basis for growth. Based on the technical analysis, we find that Boeing’s stock is overpriced. Its intrinsic value is $13. 39 in 2011, which is substantially less than its current price. But, our fundamental analysis shows that Boeing Company has not only greater earnings growth but also little more ability to grow than its competitor Lockheed Marin Corporation.The Boeing Company also has strong prospect for earnings growth in coming years. Based on the technical and fundamental analysis, we recommend hold. Background Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. As a major service provider to NASA, Boeing operates the Space Shuttle and International Space Station. The company also provides numerous military and commercial airline support services. Boeing has customers in more than 90 countries around the world and is one of the largest U. S. exporters in terms of sales. Headquartered in Chicago, Boeing employs more than 158,000 people across the United States and in 70 countries (Boeing, 2011, p. 1). Early History of Boeing Commercial Aircraft Boeing started its career in the second half of 1920’s by selling training aircraft to the U. S. Navy.This conglomerate, known as United, was the essence of vertical integration, controlling almost all aspects of the aerospace business. By 1931 United Airlines had a fleet of 120 planes that flew 32,000 miles a day (Sgouridis, 2007, p. 90). A continuing expansionist drive for market domination fueled the conglomerate. United created demand for aircraft and the manufactures profits are used of designing bigger and better planes that would in turn attract more passengers generating more profit for both division (Sgouridis, 2007, p. 90).