Kratos Defense & Security Solutions, Inc.

LSE:0JS0 Stock Report

Market Cap: US$4.4b

Kratos Defense & Security Solutions Valuation

Is 0JS0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 0JS0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$19.74
Fair Value
44.8% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: 0JS0 ($28.59) is trading above our estimate of fair value ($19.74)

Significantly Below Fair Value: 0JS0 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0JS0?

Key metric: As 0JS0 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0JS0. This is calculated by dividing 0JS0's market cap by their current revenue.
What is 0JS0's PS Ratio?
PS Ratio3.9x
SalesUS$1.13b
Market CapUS$4.37b

Price to Sales Ratio vs Peers

How does 0JS0's PS Ratio compare to its peers?

The above table shows the PS ratio for 0JS0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
QQ. QinetiQ Group
1.1x7.0%UK£2.3b
BAB Babcock International Group
0.5x3.7%UK£2.5b
CHG Chemring Group
1.7x9.7%UK£913.5m
SNR Senior
0.7x5.7%UK£648.4m
0JS0 Kratos Defense & Security Solutions
3.9x10.4%US$4.4b

Price-To-Sales vs Peers: 0JS0 is expensive based on its Price-To-Sales Ratio (3.9x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does 0JS0's PS Ratio compare vs other companies in the European Aerospace & Defense Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
0JS0 3.9xIndustry Avg. 1.5xNo. of Companies12PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0JS0 is expensive based on its Price-To-Sales Ratio (3.9x) compared to the European Aerospace & Defense industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is 0JS0'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.

0JS0 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: 0JS0 is expensive based on its Price-To-Sales Ratio (3.9x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 0JS0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$28.59
US$28.73
+0.5%
16.3%US$38.00US$20.00n/a11
Jan ’26US$26.52
US$28.36
+7.0%
14.0%US$35.00US$20.00n/a11
Dec ’25US$27.06
US$27.18
+0.5%
13.9%US$35.00US$20.00n/a11
Nov ’25US$22.96
US$26.27
+14.4%
12.9%US$35.00US$20.00n/a11
Oct ’25US$24.97
US$25.45
+1.9%
14.9%US$35.00US$19.00n/a11
Sep ’25US$22.57
US$23.64
+4.7%
9.6%US$27.00US$19.00n/a11
Aug ’25US$21.70
US$23.82
+9.8%
9.3%US$27.00US$19.00n/a11
Jul ’25US$19.77
US$23.64
+19.5%
9.6%US$27.00US$19.00n/a11
Jun ’25US$21.59
US$23.55
+9.1%
9.6%US$27.00US$19.00n/a11
May ’25US$18.24
US$22.40
+22.8%
11.5%US$27.00US$18.00n/a10
Apr ’25US$18.41
US$21.80
+18.4%
10.4%US$25.00US$17.00n/a10
Mar ’25US$18.09
US$21.80
+20.5%
10.4%US$25.00US$17.00n/a10
Feb ’25US$17.15
US$20.60
+20.1%
12.3%US$25.00US$15.00n/a10
Jan ’25US$20.39
US$20.10
-1.4%
10.3%US$23.00US$15.00US$26.5210
Dec ’24US$19.44
US$19.80
+1.9%
9.3%US$22.00US$15.00US$27.0610
Nov ’24US$17.15
US$17.70
+3.2%
9.8%US$20.00US$14.00US$22.9610
Oct ’24US$15.11
US$17.70
+17.2%
9.8%US$20.00US$14.00US$24.9710
Sep ’24US$16.06
US$17.70
+10.2%
9.8%US$20.00US$14.00US$22.5710
Aug ’24US$15.01
US$16.80
+11.9%
13.5%US$20.00US$13.00US$21.7010
Jul ’24US$14.43
US$16.67
+15.5%
14.7%US$20.00US$13.00US$19.779
Jun ’24US$13.56
US$16.67
+22.9%
14.7%US$20.00US$13.00US$21.599
May ’24US$12.85
US$16.33
+27.1%
17.1%US$20.00US$12.00US$18.249
Apr ’24US$13.42
US$16.10
+20.0%
17.0%US$20.00US$12.00US$18.4110
Mar ’24US$12.52
US$16.10
+28.6%
17.0%US$20.00US$12.00US$18.0910
Feb ’24US$11.60
US$15.45
+33.2%
22.4%US$20.00US$10.00US$17.1510
Jan ’24US$9.97
US$15.85
+59.0%
20.3%US$20.00US$11.50US$20.3910
Analyst Price Target
Consensus Narrative from 11 Analysts
US$28.38
Fair Value
0.7% overvalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 19:29
End of Day Share Price 2025/01/10 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

Kratos Defense & Security Solutions, Inc. is covered by 21 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Peter ArmentBaird
Michael LewisBB&T Capital Markets
Yi Hsiao MillwardBenchmark Company