Kratos Defense & Security Solutions, Inc.

NasdaqGS:KTOS Stock Report

Market Cap: US$3.3b

Kratos Defense & Security Solutions Valuation

Is KTOS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KTOS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KTOS ($21.41) is trading above our estimate of fair value ($15.68)

Significantly Below Fair Value: KTOS is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for KTOS?

Other financial metrics that can be useful for relative valuation.

KTOS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA44.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does KTOS's PS Ratio compare to its peers?

The above table shows the PS ratio for KTOS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
AIR AAR
1.1x14.2%US$2.5b
SPR Spirit AeroSystems Holdings
0.6x11.7%US$3.6b
MOG.A Moog
1.6x4.3%US$5.7b
HXL Hexcel
3.3x9.3%US$5.9b
KTOS Kratos Defense & Security Solutions
3x9.5%US$3.3b

Price-To-Sales vs Peers: KTOS is good value based on its Price-To-Sales Ratio (3x) compared to the peer average (4.8x).


Price to Earnings Ratio vs Industry

How does KTOS's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.6%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.6%
n/an/an/a
No more companies

Price-To-Sales vs Industry: KTOS is expensive based on its Price-To-Sales Ratio (3x) compared to the US Aerospace & Defense industry average (2.3x).


Price to Sales Ratio vs Fair Ratio

What is KTOS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KTOS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: KTOS is expensive based on its Price-To-Sales Ratio (3x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KTOS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.41
US$22.90
+7.0%
10.0%US$27.00US$19.00n/a10
May ’25US$18.19
US$22.40
+23.1%
11.5%US$27.00US$18.00n/a10
Apr ’25US$18.36
US$21.80
+18.7%
10.4%US$25.00US$17.00n/a10
Mar ’25US$18.03
US$21.80
+20.9%
10.4%US$25.00US$17.00n/a10
Feb ’25US$17.24
US$20.60
+19.5%
12.3%US$25.00US$15.00n/a10
Jan ’25US$20.29
US$20.10
-0.9%
10.3%US$23.00US$15.00n/a10
Dec ’24US$19.53
US$19.80
+1.4%
9.3%US$22.00US$15.00n/a10
Nov ’24US$17.22
US$17.70
+2.8%
9.8%US$20.00US$14.00n/a10
Oct ’24US$15.02
US$17.70
+17.8%
9.8%US$20.00US$14.00n/a10
Sep ’24US$16.21
US$17.70
+9.2%
9.8%US$20.00US$14.00n/a10
Aug ’24US$15.06
US$16.80
+11.6%
13.5%US$20.00US$13.00n/a10
Jul ’24US$14.34
US$16.67
+16.2%
14.7%US$20.00US$13.00n/a9
Jun ’24US$13.60
US$16.67
+22.5%
14.7%US$20.00US$13.00n/a9
May ’24US$13.09
US$16.33
+24.8%
17.1%US$20.00US$12.00US$18.199
Apr ’24US$13.48
US$16.10
+19.4%
17.0%US$20.00US$12.00US$18.3610
Mar ’24US$12.69
US$16.10
+26.9%
17.0%US$20.00US$12.00US$18.0310
Feb ’24US$11.98
US$15.45
+29.0%
22.4%US$20.00US$10.00US$17.2410
Jan ’24US$10.32
US$15.85
+53.6%
20.3%US$20.00US$11.50US$20.2910
Dec ’23US$9.72
US$15.95
+64.1%
19.6%US$20.00US$11.50US$19.5310
Nov ’23US$11.32
US$20.65
+82.4%
27.1%US$30.00US$12.00US$17.2210
Oct ’23US$10.16
US$22.15
+118.0%
21.6%US$30.00US$16.00US$15.0210
Sep ’23US$12.29
US$22.15
+80.2%
21.6%US$30.00US$16.00US$16.2110
Aug ’23US$15.06
US$22.45
+49.1%
20.0%US$30.00US$16.00US$15.0610
Jul ’23US$13.93
US$22.45
+61.2%
20.0%US$30.00US$16.00US$14.3410
Jun ’23US$14.45
US$22.32
+54.5%
19.3%US$30.00US$16.00US$13.6011
May ’23US$15.17
US$23.50
+54.9%
17.4%US$30.00US$17.00US$13.0911

Analyst Forecast: Target price is less than 20% higher than the current share price.


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