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 16.61. The fair price of L3Harris Technologies Inc (LHX) is between 307.58 to 340.08 according to relative valuation methord. Compared to the current price of 280.51 USD , L3Harris Technologies Inc is Undervalued By 8.8%.
Relative Value
Fair Zone
307.58-340.08
Current Price：280.51
8.8%
Undervalued
22.79
PE
1Y
3Y
5Y
Trailing
Forward
14.39
EV/EBITDA
L3Harris Technologies Inc. (LHX) has a current EV/EBITDA of 14.39. The 5-year average EV/EBITDA is 13.18. The thresholds are as follows: Strongly Undervalued below 10.87, Undervalued between 10.87 and 12.03, Fairly Valued between 14.34 and 12.03, Overvalued between 14.34 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 15.71. The thresholds are as follows: Strongly Undervalued below 13.30, Undervalued between 13.30 and 14.51, Fairly Valued between 16.91 and 14.51, Overvalued between 16.91 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
PS
L3Harris Technologies Inc. (LHX) has a current PS of 2.10. The 5-year average PS is 2.15. The thresholds are as follows: Strongly Undervalued below 1.50, Undervalued between 1.50 and 1.83, Fairly Valued between 2.48 and 1.83, Overvalued between 2.48 and 2.81, and Strongly Overvalued above 2.81. 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 14.46. The thresholds are as follows: Strongly Undervalued below 10.21, Undervalued between 10.21 and 12.33, Fairly Valued between 16.58 and 12.33, Overvalued between 16.58 and 18.71, and Strongly Overvalued above 18.71. 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 16.57. The thresholds are as follows: Strongly Undervalued below 11.78, Undervalued between 11.78 and 14.18, Fairly Valued between 18.97 and 14.18, Overvalued between 18.97 and 21.37, and Strongly Overvalued above 21.37. 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 13.61% higher. Relative to its 5-year average P/B ratio of 2.17, the current P/B ratio is about 10.77% 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 8.38% lower. Relative to its 5-year average FCF yield of 4.77% , the current FCF yield is about 3.62% lower.
2.41
P/B
Median3y
2.12
Median5y
2.17
4.95
FCF Yield
Median3y
4.56
Median5y
4.77
Competitors Valuation Multiple
The average P/S ratio for LHX's competitors is 2.57, 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.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LHX increased by 34.13% 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 Revenue Growth, contributed -1.52%to the performance.
Overall, the performance of LHX in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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