In the current market session, L3Harris Technologies Inc. (NYSE:LHX) share price is at $213.79, after a 0.22% spike. Moreover, over the past month, the stock decreased by 13.18%, but in the past year, went up by 1.51%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session.

Comparing L3Harris Technologies P/E Against Its Peers

The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued.

L3Harris Technologies has a lower P/E than the aggregate P/E of 71.42 of the Aerospace & Defense industry. Ideally, one might believe that the stock might perform worse than its peers, but it's also probable that the stock is undervalued.

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.