KTOS Valuation

Kratos Defense and Security Solutions Inc

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67.140

-1.36(-1.985%)1D

Overview
Forecast
Valuation
Earnings

KTOS Relative Valuation

KTOS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KTOS is overvalued; if below, it's undervalued.

Historical Valuation

Kratos Defense and Security Solutions Inc (KTOS) is now in the Overvalued zone, suggesting that its current forward PE ratio of 108.15 is considered Overvalued compared with the five-year average of 52.56. The fair price of Kratos Defense and Security Solutions Inc (KTOS) is between 23.75 to 43.01 according to relative valuation methord. Compared to the current price of 68.50 USD , Kratos Defense and Security Solutions Inc is Overvalued By 59.26%.

Relative Value

Fair Zone

23.75-43.01

Current Price：68.50

59.26%

Overvalued

108.15

Trailing

Forward

79.91

EV/EBITDA

Kratos Defense and Security Solutions Inc. (KTOS) has a current EV/EBITDA of 79.91. The 5-year average EV/EBITDA is 30.29. The thresholds are as follows: Strongly Undervalued below 9.27, Undervalued between 9.27 and 19.78, Fairly Valued between 40.80 and 19.78, Overvalued between 40.80 and 51.31, and Strongly Overvalued above 51.31. The current Forward EV/EBITDA of 79.91 falls within the Strongly Overvalued range.

201.05

EV/EBIT

Kratos Defense and Security Solutions Inc. (KTOS) has a current EV/EBIT of 201.05. The 5-year average EV/EBIT is 27.94. The thresholds are as follows: Strongly Undervalued below -425.61, Undervalued between -425.61 and -198.83, Fairly Valued between 254.72 and -198.83, Overvalued between 254.72 and 481.49, and Strongly Overvalued above 481.49. The current Forward EV/EBIT of 201.05 falls within the Historic Trend Line -Fairly Valued range.

8.34

Kratos Defense and Security Solutions Inc. (KTOS) has a current PS of 8.34. The 5-year average PS is 2.80. The thresholds are as follows: Strongly Undervalued below 0.52, Undervalued between 0.52 and 1.66, Fairly Valued between 3.94 and 1.66, Overvalued between 3.94 and 5.09, and Strongly Overvalued above 5.09. The current Forward PS of 8.34 falls within the Strongly Overvalued range.

160.11

P/OCF

Kratos Defense and Security Solutions Inc. (KTOS) has a current P/OCF of 160.11. The 5-year average P/OCF is 54.40. The thresholds are as follows: Strongly Undervalued below -41.99, Undervalued between -41.99 and 6.20, Fairly Valued between 102.59 and 6.20, Overvalued between 102.59 and 150.79, and Strongly Overvalued above 150.79. The current Forward P/OCF of 160.11 falls within the Strongly Overvalued range.

-139.59

P/FCF

Kratos Defense and Security Solutions Inc. (KTOS) has a current P/FCF of -139.59. The 5-year average P/FCF is -52.77. The thresholds are as follows: Strongly Undervalued below -668.17, Undervalued between -668.17 and -360.47, Fairly Valued between 254.93 and -360.47, Overvalued between 254.93 and 562.62, and Strongly Overvalued above 562.62. The current Forward P/FCF of -139.59 falls within the Historic Trend Line -Fairly Valued range.

Kratos Defense and Security Solutions Inc (KTOS) has a current Price-to-Book (P/B) ratio of 5.89. Compared to its 3-year average P/B ratio of 2.51 , the current P/B ratio is approximately 134.32% higher. Relative to its 5-year average P/B ratio of 2.68, the current P/B ratio is about 120.00% higher. Kratos Defense and Security Solutions Inc (KTOS) has a Forward Free Cash Flow (FCF) yield of approximately -0.53%. Compared to its 3-year average FCF yield of -1.79%, the current FCF yield is approximately -70.43% lower. Relative to its 5-year average FCF yield of -1.27% , the current FCF yield is about -58.23% lower.

5.89

P/B

Median3y

2.51

Median5y

2.68

-0.53

FCF Yield

Median3y

-1.79

Median5y

-1.27

Competitors Valuation Multiple

The average P/S ratio for KTOS's competitors is 3.96, providing a benchmark for relative valuation. Kratos Defense and Security Solutions Inc Corp (KTOS) exhibits a P/S ratio of 8.34, which is 110.67% above the industry average. Given its robust revenue growth of 17.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

KTOS.O

Kratos Defense and Security Solutions Inc

Huntington Ingalls Industries Inc

Performance Decomposition

Market capitalization of KTOS increased by 198.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 206.90 to 723.98.

The secondary factor is the Revenue Growth, contributed 17.13%to the performance.

Overall, the performance of KTOS in the past 1 year is driven by P/E Change. Which is more unsustainable.

17.13%

300.10M → 351.50M

Revenue Growth

-68.44%

2.63 → 0.83

Margin Expansion

249.92%

206.90 → 723.98

P/E Change

198.61%