How to buy BAE Systems shares

Own BAE Systems shares in just a few minutes.

Fact checked

BAE Systems plc (BA) is a leading aerospace & defense business based in the UK. BAE Systems is listed on the London Stock Exchange (LSE) and employs 88,400 staff. All prices are listed in pence sterling.

How to buy shares in BAE Systems

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: BA in this case.
  5. Research BAE Systems shares. The platform should provide the latest information available.
  6. Buy your BAE Systems shares. It's that simple.

How has Coronavirus impacted BAE Systems's share price?

Since the stock market crash in March caused by coronavirus, BAE Systems's share price has had significant negative movement.

Its last market close was 498.7p, which is 25.46% down on its pre-crash value of 669p and 16.36% up on the lowest point reached during the March crash when the shares fell as low as 428.6p.

If you had bought £1,000 worth of BAE Systems shares at the start of February 2020, those shares would have been worth £683.63 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £776.78.

BAE Systems share price

Use our graph to track the performance of BA stocks over time.

BAE Systems shares at a glance

Information last updated 2020-09-17.
52-week range428.6p - 672.8p
50-day moving average 518.9222p
200-day moving average 511.5676p
Wall St. target price652.67p
PE ratio 13.4339
Dividend yield 0.19p (3.54%)
Earnings per share (TTM) 37.8p
Promoted
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Invest in BAE Systems shares with 0% commission

Other fees may apply. Your capital is at risk.

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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
Capital at risk. 0% commission but other fees may apply.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
Moneyfarm Pension
£1,500 (initial investment)
7 funds
0.35%-0.75%
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100 or £25 a month
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
Any lump sum or £25 a month
Over 3,000 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

Is it a good time to buy BAE Systems stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Is BAE Systems under- or over-valued?

Valuing BAE Systems stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of BAE Systems's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

BAE Systems's P/E ratio

BAE Systems's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, BAE Systems shares trade at around 13x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

However, BAE Systems's P/E ratio is best considered in relation to those of others within the aerospace & defense industry or those of similar companies.

BAE Systems's PEG ratio

BAE Systems's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 5.4283. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into BAE Systems's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

However, it's sensible to consider BAE Systems's PEG ratio in relation to those of similar companies.

BAE Systems's EBITDA

BAE Systems's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £1.9 billion.

The EBITDA is a measure of a BAE Systems's overall financial performance and is widely used to measure a its profitability.

To put BAE Systems's EBITDA into context you can compare it against that of similar companies.

BAE Systems financials

Revenue TTM £18.8 billion
Operating margin TTM 8.68%
Gross profit TTM £11.8 billion
Return on assets TTM 3.87%
Return on equity TTM 24.95%
Profit margin 6.45%
Book value 1.427p
Market capitalisation £16.9 billion

TTM: trailing 12 months

BAE Systems's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like BAE Systems.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

BAE Systems's total ESG risk score

Total ESG risk: 33.34

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and BAE Systems's overall score of 33.34 (as at 08/01/2020) is pretty weak – landing it in it in the 72nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like BAE Systems is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

To gain some more context, you can compare BAE Systems's total ESG risk score against those of similar companies.

BAE Systems's environmental score

Environmental score: 8.25/100

BAE Systems's environmental score of 8.25 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that BAE Systems is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

BAE Systems's social score

Social score: 16.55/100

BAE Systems's social score of 16.55 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that BAE Systems is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

BAE Systems's governance score

Governance score: 6.03/100

BAE Systems's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that BAE Systems is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

BAE Systems's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, BAE Systems scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that BAE Systems hasn't always managed to keep its nose clean.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

BAE Systems plc was last rated for ESG on: 2020-08-01.

Total ESG score 33.34
Total ESG percentile 71.96
Environmental score 8.25
Environmental score percentile 1
Social score 16.55
Social score percentile 1
Governance score 6.03
Governance score percentile 1
Level of controversy 3

BAE Systems share dividends

25%

Dividend payout ratio: 24.87% of net profits

Recently BAE Systems has paid out, on average, around 24.87% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.54% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), BAE Systems shareholders could enjoy a 3.54% return on their shares, in the form of dividend payments. In BAE Systems's case, that would currently equate to about 0.19p per share.

While BAE Systems's payout ratio might seem low, this can signify that BAE Systems is investing more in its future growth.

The latest dividend was paid out to all shareholders who bought their shares by 22 October 2020 (the "ex-dividend date").

BAE Systems's dividend payout ratio is perhaps best considered in relation to those of similar companies.

Have BAE Systems's shares ever split?

BAE Systems's shares were split on a 4:1 basis on 5 May 1998. So if you had owned 1 share the day before before the split, the next day you'd have owned 4 shares. This wouldn't directly have changed the overall worth of your BAE Systems shares – just the quantity. However, indirectly, the new 75% lower share price could have impacted the market appetite for BAE Systems shares which in turn could have impacted BAE Systems's share price.

BAE Systems share price volatility

Over the last 12 months, BAE Systems's shares have ranged in value from as little as 428.6p up to 672.8p. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while BAE Systems's is 0.4422. This would suggest that BAE Systems's shares are less volatile than average (for this exchange).

To put BAE Systems's beta into context you can compare it against those of similar companies.

BAE Systems overview

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, and hybrid electric drive systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for C4ISR systems and enterprise IT networks; and solutions and services to enhance the collection, analysis, and processing of data across the US civilian and military intelligence communities. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, and data against attacks; security and intelligence solutions to the United Kingdom government and allied international governments; anti-fraud and regulatory compliance solutions; and enterprise-level data and digital services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems; and supplies naval gun systems. It also supplies naval weapon systems, missile launchers, and precision munitions. The company was incorporated in 1979 and is based in London, the United Kingdom.

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