Kratos Defense & Security Solutions, Inc.

NasdaqGS:KTOS Stock Report

Market Cap: US$3.8b

Kratos Defense & Security Solutions Valuation

Is KTOS 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 KTOS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KTOS ($26.24) is trading above our estimate of fair value ($20.19)

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?

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

The above table shows the Price to Sales ratio for KTOS. This is calculated by dividing KTOS's market cap by their current revenue.
What is KTOS's PS Ratio?
PS Ratio3.5x
SalesUS$1.13b
Market CapUS$3.81b

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 Average2.8x
SPR Spirit AeroSystems Holdings
0.6x13.3%US$3.7b
HXL Hexcel
2.6x8.0%US$4.7b
AIR AAR
1x8.4%US$2.4b
AVAV AeroVironment
7.2x12.9%US$5.6b
KTOS Kratos Defense & Security Solutions
3.5x10.2%US$3.8b

Price-To-Sales vs Peers: KTOS is expensive based on its Price-To-Sales Ratio (3.5x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
VVX V2X
0.5x5.2%US$1.95b
LLAP Terran Orbital
0.4x29.5%US$51.22m
SIF SIFCO Industries
0.2xn/aUS$22.93m
AIRI Air Industries Group
0.3x8.9%US$14.45m
KTOS 3.5xIndustry Avg. 2.6xNo. of Companies9PS0246810+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: KTOS is expensive based on its Price-To-Sales Ratio (3.5x) compared to the US Aerospace & Defense industry average (2.5x).

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 Ratio3.5x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: KTOS is expensive based on its Price-To-Sales Ratio (3.5x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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$26.24
US$27.18
+3.6%
13.9%US$35.00US$20.00n/a11
Nov ’25US$22.87
US$26.27
+14.9%
12.9%US$35.00US$20.00n/a11
Oct ’25US$24.82
US$25.45
+2.6%
14.9%US$35.00US$19.00n/a11
Sep ’25US$22.94
US$23.64
+3.0%
9.6%US$27.00US$19.00n/a11
Aug ’25US$22.03
US$23.82
+8.1%
9.3%US$27.00US$19.00n/a11
Jul ’25US$19.74
US$23.64
+19.7%
9.6%US$27.00US$19.00n/a11
Jun ’25US$21.74
US$23.55
+8.3%
9.6%US$27.00US$19.00n/a11
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$14.00US$22.8710
Oct ’24US$15.02
US$17.70
+17.8%
9.8%US$20.00US$14.00US$24.8210
Sep ’24US$16.21
US$17.70
+9.2%
9.8%US$20.00US$14.00US$22.9410
Aug ’24US$15.06
US$16.80
+11.6%
13.5%US$20.00US$13.00US$22.0310
Jul ’24US$14.34
US$16.67
+16.2%
14.7%US$20.00US$13.00US$19.749
Jun ’24US$13.60
US$16.67
+22.5%
14.7%US$20.00US$13.00US$21.749
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

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

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