Lockheed Martin Corporation

WBAG:LMT Stock Report

Market Cap: €110.8b

Lockheed Martin Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: LMT (€469.05) is trading below our estimate of fair value (€742.9)

Significantly Below Fair Value: LMT is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As LMT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LMT. This is calculated by dividing LMT's market cap by their current earnings.
What is LMT's PE Ratio?
PE Ratio17.1x
EarningsUS$6.68b
Market CapUS$114.21b

Price to Earnings Ratio vs Peers

How does LMT's PE Ratio compare to its peers?

The above table shows the PE ratio for LMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.6x
AIR Airbus
38.4x23.1%€125.4b
FACC FACC
13.6x43.3%€285.3m
RTX RTX
32.7x15.2%US$154.2b
GE General Electric
33.8x13.2%US$186.1b
LMT Lockheed Martin
17.1x2.2%€114.2b

Price-To-Earnings vs Peers: LMT is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (29.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LMT 17.1xIndustry Avg. 24.6xNo. of Companies8PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LMT is good value based on its Price-To-Earnings Ratio (17.1x) compared to the European Aerospace & Defense industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

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

LMT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: LMT is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

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 LMT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€469.05
€576.22
+22.8%
12.2%€685.98€422.89n/a21
Dec ’25€500.80
€575.92
+15.0%
11.3%€670.77€413.52n/a21
Nov ’25€503.80
€558.29
+10.8%
11.4%€651.06€401.36n/a21
Oct ’25€547.00
€503.97
-7.9%
10.7%€635.99€365.88n/a20
Sep ’25€510.70
€488.44
-4.4%
9.0%€567.37€361.87n/a20
Aug ’25€505.10
€495.79
-1.8%
8.8%€586.42€374.02n/a20
Jul ’25€435.55
€456.68
+4.9%
7.2%€508.49€352.03n/a19
Jun ’25€424.50
€453.35
+6.8%
7.1%€506.36€350.56n/a19
May ’25€434.25
€456.06
+5.0%
6.8%€510.40€353.35n/a21
Apr ’25€421.00
€445.50
+5.8%
6.8%€503.74€350.59n/a22
Mar ’25€392.70
€449.06
+14.4%
6.9%€511.39€353.32n/a22
Feb ’25€395.80
€446.77
+12.9%
6.9%€507.82€350.85n/a22
Jan ’25€408.20
€441.84
+8.2%
8.2%€503.80€333.42€467.9021
Dec ’24€413.90
€454.16
+9.7%
8.3%€519.70€343.94€500.8021
Nov ’24€430.40
€454.16
+5.5%
8.3%€519.70€343.94€503.8021
Oct ’24€387.10
€472.32
+22.0%
8.4%€528.30€356.01€547.0021
Sep ’24€417.10
€456.26
+9.4%
8.1%€507.21€341.80€510.7020
Aug ’24€409.20
€449.49
+9.8%
8.1%€498.89€336.19€505.1020
Jul ’24€419.60
€470.66
+12.2%
9.3%€541.77€347.14€435.5520
Jun ’24€418.50
€470.66
+12.5%
9.3%€541.77€347.14€424.5020
May ’24€420.80
€472.98
+12.4%
14.8%€711.05€338.20€434.2520
Apr ’24€435.85
€468.19
+7.4%
15.6%€721.45€311.32€421.0020
Mar ’24€444.45
€468.19
+5.3%
15.6%€721.45€311.32€392.7020
Feb ’24€423.10
€452.60
+7.0%
16.3%€704.57€304.04€395.8020
Jan ’24€455.95
€469.32
+2.9%
15.6%€715.43€361.96€408.2020

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 10:09
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/29
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Lockheed Martin Corporation is covered by 52 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Peter ArmentBaird
Ishan MajumdarBaptista Research