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 19.99 is considered Fairly compared with the five-year average of 17.98. The fair price of Northrop Grumman Corp (NOC) is between 544.27 to 664.94 according to relative valuation methord.
Relative Value
Fair Zone
544.27-664.94
Current Price：553.00
Fair
19.98
PE
1Y
3Y
5Y
Trailing
Forward
15.10
EV/EBITDA
Northrop Grumman Corp. (NOC) has a current EV/EBITDA of 15.10. The 5-year average EV/EBITDA is 14.73. The thresholds are as follows: Strongly Undervalued below 11.14, Undervalued between 11.14 and 12.93, Fairly Valued between 16.52 and 12.93, Overvalued between 16.52 and 18.32, and Strongly Overvalued above 18.32. The current Forward EV/EBITDA of 15.10 falls within the Historic Trend Line -Fairly Valued range.
19.80
EV/EBIT
Northrop Grumman Corp. (NOC) has a current EV/EBIT of 19.80. The 5-year average EV/EBIT is 19.45. The thresholds are as follows: Strongly Undervalued below 13.73, Undervalued between 13.73 and 16.59, Fairly Valued between 22.30 and 16.59, Overvalued between 22.30 and 25.16, and Strongly Overvalued above 25.16. The current Forward EV/EBIT of 19.80 falls within the Historic Trend Line -Fairly Valued range.
1.82
PS
Northrop Grumman Corp. (NOC) has a current PS of 1.82. The 5-year average PS is 1.74. The thresholds are as follows: Strongly Undervalued below 1.37, Undervalued between 1.37 and 1.56, Fairly Valued between 1.92 and 1.56, Overvalued between 1.92 and 2.11, and Strongly Overvalued above 2.11. The current Forward PS of 1.82 falls within the Historic Trend Line -Fairly Valued range.
12.10
P/OCF
Northrop Grumman Corp. (NOC) has a current P/OCF of 12.10. The 5-year average P/OCF is 15.11. The thresholds are as follows: Strongly Undervalued below 10.29, Undervalued between 10.29 and 12.70, Fairly Valued between 17.52 and 12.70, Overvalued between 17.52 and 19.93, and Strongly Overvalued above 19.93. The current Forward P/OCF of 12.10 falls within the Undervalued range.
14.83
P/FCF
Northrop Grumman Corp. (NOC) has a current P/FCF of 14.83. The 5-year average P/FCF is 24.71. The thresholds are as follows: Strongly Undervalued below 12.31, Undervalued between 12.31 and 18.51, Fairly Valued between 30.91 and 18.51, Overvalued between 30.91 and 37.11, and Strongly Overvalued above 37.11. The current Forward P/FCF of 14.83 falls within the Undervalued range.
Northrop Grumman Corp (NOC) has a current Price-to-Book (P/B) ratio of 4.94. Compared to its 3-year average P/B ratio of 4.78 , the current P/B ratio is approximately 3.28% higher. Relative to its 5-year average P/B ratio of 4.96, the current P/B ratio is about -0.43% higher. Northrop Grumman Corp (NOC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.78%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.17% , the current FCF yield is about -100.00% lower.
4.94
P/B
Median3y
4.78
Median5y
4.96
2.32
FCF Yield
Median3y
2.78
Median5y
3.17
Competitors Valuation Multiple
The average P/S ratio for NOC's competitors is 2.57, providing a benchmark for relative valuation. Northrop Grumman Corp Corp (NOC) exhibits a P/S ratio of , which is -100.00% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NOC increased by 17.84% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.96 to 19.88.
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.
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