Lockheed Martin Valuation

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

LMT (CHF430) is trading below our estimate of [[fair value]] (CHF635.66)

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 (CHF430) is trading below our estimate of fair value (CHF635.66)

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 Ratio	20x
Earnings	US$6.68b
Market Cap	US$133.82b

LMT 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/Revenue	2.1x
Enterprise Value/EBITDA	14.7x
PEG Ratio	10.2x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	30.6x
ABBN ABB	26.4x	9.2%	CHF 90.7b
SCHN Schindler Holding	28.8x	6.7%	CHF 26.9b
RTX RTX	33.7x	15.4%	US$157.8b
AIR Airbus	33.5x	21.8%	€109.5b
LMT Lockheed Martin	20x	2.0%	CHF 133.8b

Price-To-Earnings vs Peers: LMT is good value based on its Price-To-Earnings Ratio (20x) compared to the peer average (31.4x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LMT is good value based on its Price-To-Earnings Ratio (20x) compared to the European Aerospace & Defense industry average (24.2x).

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 Ratio	20x
Fair PE Ratio	26.2x

Price-To-Earnings vs Fair Ratio: LMT is good value based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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