Northrop Grumman Corporation

LSE:0K92 Stock Report

Market Cap: US$71.3b

Northrop Grumman Valuation

Is 0K92 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0K92 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0K92 ($488.66) is trading below our estimate of fair value ($684.9)

Significantly Below Fair Value: 0K92 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0K92?

Key metric: As 0K92 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0K92. This is calculated by dividing 0K92's market cap by their current earnings.
What is 0K92's PE Ratio?
PE Ratio30x
EarningsUS$2.38b
Market CapUS$71.26b

Price to Earnings Ratio vs Peers

How does 0K92's PE Ratio compare to its peers?

The above table shows the PE ratio for 0K92 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.9x
BA. BAE Systems
21x7.7%UK£38.6b
RR. Rolls-Royce Holdings
19.8x-0.09%UK£46.1b
BAB Babcock International Group
13.5x14.2%UK£2.6b
QQ. QinetiQ Group
17.4x15.1%UK£2.4b
0K92 Northrop Grumman
30x12.1%US$71.3b

Price-To-Earnings vs Peers: 0K92 is expensive based on its Price-To-Earnings Ratio (30x) compared to the peer average (17.8x).

Price to Earnings Ratio vs Industry

How does 0K92's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0K92 30.0xIndustry Avg. 24.6xNo. of Companies9PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0K92 is expensive based on its Price-To-Earnings Ratio (30x) compared to the European Aerospace & Defense industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0K92'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.

0K92 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30x
Fair PE Ratio28.6x

Price-To-Earnings vs Fair Ratio: 0K92 is expensive based on its Price-To-Earnings Ratio (30x) compared to the estimated Fair Price-To-Earnings Ratio (28.6x).

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 0K92 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$488.66
US$565.06
+15.6%
7.7%US$643.00US$448.00n/a23
Nov ’25US$508.27
US$562.20
+10.6%
8.3%US$643.00US$448.00n/a22
Oct ’25US$544.72
US$523.70
-3.9%
10.0%US$614.00US$398.00n/a22
Sep ’25US$522.07
US$520.15
-0.4%
9.4%US$605.00US$398.00n/a22
Aug ’25US$489.45
US$520.30
+6.3%
9.5%US$605.00US$398.00n/a21
Jul ’25US$434.46
US$501.18
+15.4%
10.5%US$593.00US$396.00n/a22
Jun ’25US$450.03
US$502.99
+11.8%
10.3%US$585.00US$396.00n/a21
May ’25US$488.83
US$500.09
+2.3%
10.3%US$585.00US$396.00n/a22
Apr ’25US$478.78
US$485.96
+1.5%
11.4%US$615.00US$385.00n/a22
Mar ’25US$454.61
US$486.64
+7.0%
11.6%US$615.00US$385.00n/a22
Feb ’25US$443.83
US$488.27
+10.0%
11.6%US$615.00US$385.00n/a22
Jan ’25US$467.48
US$497.64
+6.5%
11.1%US$615.00US$382.00n/a22
Dec ’24US$480.24
US$502.81
+4.7%
11.1%US$615.00US$382.00n/a21
Nov ’24US$468.66
US$502.71
+7.3%
11.1%US$615.00US$382.00US$508.2721
Oct ’24US$439.99
US$494.65
+12.4%
11.5%US$615.00US$384.00US$544.7220
Sep ’24US$436.33
US$496.89
+13.9%
11.4%US$615.00US$384.00US$522.0719
Aug ’24US$447.64
US$499.37
+11.6%
11.3%US$615.00US$384.00US$489.4519
Jul ’24US$457.72
US$501.74
+9.6%
13.3%US$655.00US$384.00US$434.4619
Jun ’24US$436.79
US$502.37
+15.0%
13.4%US$655.00US$384.00US$450.0319
May ’24US$457.91
US$511.95
+11.8%
13.0%US$655.00US$384.00US$488.8319
Apr ’24US$461.47
US$510.74
+10.7%
13.4%US$655.00US$367.00US$478.7819
Mar ’24US$459.95
US$510.33
+11.0%
13.8%US$655.00US$367.00US$454.6118
Feb ’24US$443.13
US$516.50
+16.6%
14.0%US$655.00US$367.00US$443.8318
Jan ’24US$543.68
US$559.95
+3.0%
12.5%US$700.00US$368.00US$467.4819
Dec ’23US$530.61
US$552.61
+4.1%
12.8%US$700.00US$368.00US$480.2418
Nov ’23US$534.33
US$537.50
+0.6%
13.1%US$700.00US$368.00US$468.6618

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

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