LMT Relative Valuation
LMT'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, LMT is overvalued; if below, it's undervalued.
Historical Valuation
Lockheed Martin Corp (LMT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.50 is considered Undervalued compared with the five-year average of 16.18. The fair price of Lockheed Martin Corp (LMT) is between 498.59 to 589.62 according to relative valuation methord. Compared to the current price of 426.26 USD , Lockheed Martin Corp is Undervalued By 14.51%.
Relative Value
Fair Zone
498.59-589.62
Current Price：426.26
14.51%
Undervalued
15.50
PE
1Y
3Y
5Y
Trailing
Forward
11.13
EV/EBITDA
Lockheed Martin Corp. (LMT) has a current EV/EBITDA of 11.13. The 5-year average EV/EBITDA is 12.28. The thresholds are as follows: Strongly Undervalued below 9.49, Undervalued between 9.49 and 10.89, Fairly Valued between 13.67 and 10.89, Overvalued between 13.67 and 15.07, and Strongly Overvalued above 15.07. The current Forward EV/EBITDA of 11.13 falls within the Historic Trend Line -Fairly Valued range.
13.27
EV/EBIT
Lockheed Martin Corp. (LMT) has a current EV/EBIT of 13.27. The 5-year average EV/EBIT is 14.26. The thresholds are as follows: Strongly Undervalued below 10.75, Undervalued between 10.75 and 12.50, Fairly Valued between 16.02 and 12.50, Overvalued between 16.02 and 17.78, and Strongly Overvalued above 17.78. The current Forward EV/EBIT of 13.27 falls within the Historic Trend Line -Fairly Valued range.
1.32
PS
Lockheed Martin Corp. (LMT) has a current PS of 1.32. The 5-year average PS is 1.62. The thresholds are as follows: Strongly Undervalued below 1.30, Undervalued between 1.30 and 1.46, Fairly Valued between 1.78 and 1.46, Overvalued between 1.78 and 1.93, and Strongly Overvalued above 1.93. The current Forward PS of 1.32 falls within the Undervalued range.
9.73
P/OCF
Lockheed Martin Corp. (LMT) has a current P/OCF of 9.73. The 5-year average P/OCF is 13.21. The thresholds are as follows: Strongly Undervalued below 9.69, Undervalued between 9.69 and 11.45, Fairly Valued between 14.97 and 11.45, Overvalued between 14.97 and 16.73, and Strongly Overvalued above 16.73. The current Forward P/OCF of 9.73 falls within the Undervalued range.
15.52
P/FCF
Lockheed Martin Corp. (LMT) has a current P/FCF of 15.52. The 5-year average P/FCF is 17.35. The thresholds are as follows: Strongly Undervalued below 12.76, Undervalued between 12.76 and 15.05, Fairly Valued between 19.64 and 15.05, Overvalued between 19.64 and 21.94, and Strongly Overvalued above 21.94. The current Forward P/FCF of 15.52 falls within the Historic Trend Line -Fairly Valued range.
Lockheed Martin Corp (LMT) has a current Price-to-Book (P/B) ratio of 18.51. Compared to its 3-year average P/B ratio of 14.73 , the current P/B ratio is approximately 25.67% higher. Relative to its 5-year average P/B ratio of 14.85, the current P/B ratio is about 24.70% higher. Lockheed Martin Corp (LMT) has a Forward Free Cash Flow (FCF) yield of approximately 3.35%. Compared to its 3-year average FCF yield of 5.45%, the current FCF yield is approximately -38.49% lower. Relative to its 5-year average FCF yield of 5.68% , the current FCF yield is about -41.05% lower.
18.51
P/B
Median3y
14.73
Median5y
14.85
3.35
FCF Yield
Median3y
5.45
Median5y
5.68
Competitors Valuation Multiple
The average P/S ratio for LMT's competitors is 4.07, providing a benchmark for relative valuation. Lockheed Martin Corp Corp (LMT) exhibits a P/S ratio of 1.32, which is -67.65% above the industry average. Given its robust revenue growth of 0.18%, 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 LMT decreased by 25.08% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.53 to 23.92.
The secondary factor is the Revenue Growth, contributed 0.18%to the performance.
Overall, the performance of LMT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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