NOC Valuation

Northrop Grumman Corp

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568.610

-3.35(-0.586%)1D

NOC Relative Valuation

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

Historical Valuation

Northrop Grumman Corp (NOC) is now in the Fair zone, suggesting that its current forward PE ratio of 20.54 is considered Fairly compared with the five-year average of 17.86. The fair price of Northrop Grumman Corp (NOC) is between 541.74 to 664.61 according to relative valuation methord.

Relative Value

Fair Zone

541.74-664.61

Current Price：568.61

Fair

20.54

Trailing

Forward

15.52

EV/EBITDA

Northrop Grumman Corp. (NOC) has a current EV/EBITDA of 15.52. The 5-year average EV/EBITDA is 14.65. The thresholds are as follows: Strongly Undervalued below 10.99, Undervalued between 10.99 and 12.82, Fairly Valued between 16.48 and 12.82, Overvalued between 16.48 and 18.31, and Strongly Overvalued above 18.31. The current Forward EV/EBITDA of 15.52 falls within the Historic Trend Line -Fairly Valued range.

20.36

EV/EBIT

Northrop Grumman Corp. (NOC) has a current EV/EBIT of 20.36. The 5-year average EV/EBIT is 19.35. The thresholds are as follows: Strongly Undervalued below 13.55, Undervalued between 13.55 and 16.45, Fairly Valued between 22.25 and 16.45, Overvalued between 22.25 and 25.15, and Strongly Overvalued above 25.15. The current Forward EV/EBIT of 20.36 falls within the Historic Trend Line -Fairly Valued range.

568.61

Northrop Grumman Corp. (NOC) has a current PS of 568.61. The 5-year average PS is 5.47. The thresholds are as follows: Strongly Undervalued below -87.30, Undervalued between -87.30 and -40.91, Fairly Valued between 51.86 and -40.91, Overvalued between 51.86 and 98.25, and Strongly Overvalued above 98.25. The current Forward PS of 568.61 falls within the Strongly Overvalued range.

12.48

P/OCF

Northrop Grumman Corp. (NOC) has a current P/OCF of 12.48. The 5-year average P/OCF is 15.11. The thresholds are as follows: Strongly Undervalued below 10.21, Undervalued between 10.21 and 12.66, Fairly Valued between 17.57 and 12.66, Overvalued between 17.57 and 20.02, and Strongly Overvalued above 20.02. The current Forward P/OCF of 12.48 falls within the Undervalued range.

15.32

P/FCF

Northrop Grumman Corp. (NOC) has a current P/FCF of 15.32. The 5-year average P/FCF is 24.88. The thresholds are as follows: Strongly Undervalued below 12.60, Undervalued between 12.60 and 18.74, Fairly Valued between 31.03 and 18.74, Overvalued between 31.03 and 37.17, and Strongly Overvalued above 37.17. The current Forward P/FCF of 15.32 falls within the Undervalued range.

Northrop Grumman Corp (NOC) has a current Price-to-Book (P/B) ratio of 5.08. Compared to its 3-year average P/B ratio of 4.80 , the current P/B ratio is approximately 5.73% higher. Relative to its 5-year average P/B ratio of 4.96, the current P/B ratio is about 2.34% higher. Northrop Grumman Corp (NOC) has a Forward Free Cash Flow (FCF) yield of approximately 0.02%. Compared to its 3-year average FCF yield of 2.74%, the current FCF yield is approximately -99.17% lower. Relative to its 5-year average FCF yield of 3.24% , the current FCF yield is about -99.30% lower.

5.08

P/B

Median3y

4.80

Median5y

4.96

0.02

FCF Yield

Median3y

2.74

Median5y

3.24

Competitors Valuation Multiple

The average P/S ratio for NOC's competitors is 573.79, providing a benchmark for relative valuation. Northrop Grumman Corp Corp (NOC) exhibits a P/S ratio of 568.61, which is -0.90% above the industry average. Given its robust revenue growth of 4.27%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

NOC.N

Northrop Grumman Corp

General Dynamics Corp

Performance Decomposition

Market capitalization of NOC increased by 16.13% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.75 to 20.44.

The secondary factor is the Revenue Growth, contributed 4.27%to the performance.

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

4.27%

10.00B → 10.42B

Revenue Growth

2.83%

10.26 → 10.55

Margin Expansion

9.03%

18.75 → 20.44

P/E Change

16.13%