By: Carter Copeland
Last week’s Iran-related news has stabilized the trading in Defense with the group bouncing off recent post-quarter lows. We’ve fielded more incoming requests for data on defense valuation puts and takes in the last two weeks than we have in the last few years. Investors are increasingly focused on apples-to-apples valuation comps, pension-related earnings adjustments, and preferred longer-term valuation frameworks. This note shares our thinking on those topics for investors sifting through the group and looking for value after the recent declines.