LHX PE Ratio & Valuation,Is LHX Overvalued

LHX Relative Valuation

LHX'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, LHX is overvalued; if below, it's undervalued.

Historical Valuation

L3Harris Technologies Inc (LHX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.79 is considered Undervalued compared with the five-year average of 16.62. The fair price of L3Harris Technologies Inc (LHX) is between 319.89 to 353.25 according to relative valuation methord. Compared to the current price of 287.68 USD , L3Harris Technologies Inc is Undervalued By 10.07%.

Relative Value

Fair Zone

319.89-353.25

Current Price：287.68

10.07%

Undervalued

22.79

14.39

EV/EBITDA

L3Harris Technologies Inc. (LHX) has a current EV/EBITDA of 14.39. The 5-year average EV/EBITDA is 13.19. The thresholds are as follows: Strongly Undervalued below 10.89, Undervalued between 10.89 and 12.04, Fairly Valued between 14.35 and 12.04, Overvalued between 14.35 and 15.50, and Strongly Overvalued above 15.50. The current Forward EV/EBITDA of 14.39 falls within the Overvalued range.

16.71

EV/EBIT

L3Harris Technologies Inc. (LHX) has a current EV/EBIT of 16.71. The 5-year average EV/EBIT is 15.72. The thresholds are as follows: Strongly Undervalued below 13.33, Undervalued between 13.33 and 14.53, Fairly Valued between 16.92 and 14.53, Overvalued between 16.92 and 18.12, and Strongly Overvalued above 18.12. The current Forward EV/EBIT of 16.71 falls within the Historic Trend Line -Fairly Valued range.

2.10

L3Harris Technologies Inc. (LHX) has a current PS of 2.10. The 5-year average PS is 2.16. The thresholds are as follows: Strongly Undervalued below 1.50, Undervalued between 1.50 and 1.83, Fairly Valued between 2.49 and 1.83, Overvalued between 2.49 and 2.82, and Strongly Overvalued above 2.82. The current Forward PS of 2.10 falls within the Historic Trend Line -Fairly Valued range.

13.45

P/OCF

L3Harris Technologies Inc. (LHX) has a current P/OCF of 13.45. The 5-year average P/OCF is 14.47. The thresholds are as follows: Strongly Undervalued below 10.21, Undervalued between 10.21 and 12.34, Fairly Valued between 16.59 and 12.34, Overvalued between 16.59 and 18.72, and Strongly Overvalued above 18.72. The current Forward P/OCF of 13.45 falls within the Historic Trend Line -Fairly Valued range.

16.90

P/FCF

L3Harris Technologies Inc. (LHX) has a current P/FCF of 16.90. The 5-year average P/FCF is 16.59. The thresholds are as follows: Strongly Undervalued below 11.78, Undervalued between 11.78 and 14.18, Fairly Valued between 18.99 and 14.18, Overvalued between 18.99 and 21.39, and Strongly Overvalued above 21.39. The current Forward P/FCF of 16.90 falls within the Historic Trend Line -Fairly Valued range.

L3Harris Technologies Inc (LHX) has a current Price-to-Book (P/B) ratio of 2.41. Compared to its 3-year average P/B ratio of 2.12 , the current P/B ratio is approximately 13.74% higher. Relative to its 5-year average P/B ratio of 2.17, the current P/B ratio is about 10.66% higher. L3Harris Technologies Inc (LHX) has a Forward Free Cash Flow (FCF) yield of approximately 4.95%. Compared to its 3-year average FCF yield of 4.56%, the current FCF yield is approximately 8.37% lower. Relative to its 5-year average FCF yield of 4.76% , the current FCF yield is about 3.98% lower.

2.41

P/B

Median3y

2.12

Median5y

2.17

4.95

FCF Yield

Median3y

4.56

Median5y

4.76

Competitors Valuation Multiple

The average P/S ratio for LHX's competitors is 2.83, providing a benchmark for relative valuation. L3Harris Technologies Inc Corp (LHX) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of -1.52%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LHX increased by 37.96% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.47 to 7.52.

The secondary factor is the P/E Change, contributed 2.00%to the performance.

Overall, the performance of LHX in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-1.52%

5.21B → 5.13B

Revenue Growth

37.48%

5.47 → 7.52

Margin Expansion

2.00%

28.54 → 29.11

P/E Change

37.96%

209.13 → 288.53

Mkt Cap Growth

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Frequently Asked Questions

Is L3Harris Technologies Inc (LHX) currently overvalued or undervalued?

What is L3Harris Technologies Inc (LHX) fair value?

LHX'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. The fair price of L3Harris Technologies Inc (LHX) is between 319.89 to 353.25 according to relative valuation methord.

How does LHX's valuation metrics compare to the industry average?

The average P/S ratio for LHX's competitors is 2.83, providing a benchmark for relative valuation. L3Harris Technologies Inc Corp (LHX) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -1.52%, this premium appears unsustainable.

What is the current P/B ratio for L3Harris Technologies Inc (LHX) as of Dec 16 2025?

As of Dec 16 2025, L3Harris Technologies Inc (LHX) has a P/B ratio of 2.41. This indicates that the market values LHX at 2.41 times its book value.

What is the current FCF Yield for L3Harris Technologies Inc (LHX) as of Dec 16 2025?

As of Dec 16 2025, L3Harris Technologies Inc (LHX) has a FCF Yield of 4.95%. This means that for every dollar of L3Harris Technologies Inc’s market capitalization, the company generates 4.95 cents in free cash flow.

What is the current Forward P/E ratio for L3Harris Technologies Inc (LHX) as of Dec 16 2025?

As of Dec 16 2025, L3Harris Technologies Inc (LHX) has a Forward P/E ratio of 22.79. This means the market is willing to pay $22.79 for every dollar of L3Harris Technologies Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for L3Harris Technologies Inc (LHX) as of Dec 16 2025?

As of Dec 16 2025, L3Harris Technologies Inc (LHX) has a Forward P/S ratio of 2.10. This means the market is valuing LHX at $2.10 for every dollar of expected revenue over the next 12 months.

LHX Valuation