L3Harris Technologies, Inc.

NYSE:LHX Stock Report

Market Cap: US$46.2b

L3Harris Technologies Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: LHX ($244.36) is trading below our estimate of fair value ($455.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LHX. This is calculated by dividing LHX's market cap by their current earnings.
What is LHX's PE Ratio?
PE Ratio38.4x
EarningsUS$1.21b
Market CapUS$46.20b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LHX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.1x
HWM Howmet Aerospace
44.6x15.6%US$47.1b
NOC Northrop Grumman
30.2x12.0%US$71.5b
AXON Axon Enterprise
156.4x18.7%US$46.5b
GD General Dynamics
21.1x9.2%US$77.1b
LHX L3Harris Technologies
38.4x20.7%US$46.2b

Price-To-Earnings vs Peers: LHX is good value based on its Price-To-Earnings Ratio (38.4x) compared to the peer average (63.1x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
2.8xn/aUS$47.45m
ETCC Environmental Tectonics
4.8xn/aUS$30.36m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
LHX 38.4xIndustry Avg. 34.4xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LHX is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the US Aerospace & Defense industry average (34.4x).

Price to Earnings Ratio vs Fair Ratio

What is LHX'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.

LHX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.4x
Fair PE Ratio32.1x

Price-To-Earnings vs Fair Ratio: LHX is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the estimated Fair Price-To-Earnings Ratio (32.1x).

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 LHX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$244.36
US$279.14
+14.2%
8.7%US$324.00US$206.00n/a23
Nov ’25US$247.48
US$276.70
+11.8%
9.1%US$324.00US$206.00n/a23
Oct ’25US$245.29
US$254.83
+3.9%
9.6%US$324.00US$185.00n/a22
Sep ’25US$236.67
US$255.30
+7.9%
9.5%US$324.00US$185.00n/a22
Aug ’25US$229.22
US$256.60
+11.9%
9.7%US$324.00US$185.00n/a21
Jul ’25US$221.96
US$250.25
+12.7%
9.5%US$324.00US$185.00n/a22
Jun ’25US$224.83
US$248.97
+10.7%
9.5%US$324.00US$185.00n/a22
May ’25US$211.75
US$246.61
+16.5%
9.8%US$324.00US$185.00n/a23
Apr ’25US$208.56
US$244.30
+17.1%
10.3%US$324.00US$184.00n/a22
Mar ’25US$209.81
US$244.94
+16.7%
11.2%US$338.00US$184.00n/a22
Feb ’25US$209.48
US$243.86
+16.4%
11.6%US$338.00US$184.00n/a22
Jan ’25US$210.62
US$235.13
+11.6%
13.5%US$338.00US$162.00n/a23
Dec ’24US$194.69
US$223.17
+14.6%
14.9%US$338.00US$162.00n/a23
Nov ’24US$178.72
US$222.32
+24.4%
15.3%US$338.00US$162.00US$247.4822
Oct ’24US$174.12
US$229.00
+31.5%
15.3%US$338.00US$164.00US$245.2920
Sep ’24US$177.26
US$233.17
+31.5%
15.0%US$338.00US$164.00US$236.6718
Aug ’24US$187.72
US$234.94
+25.2%
15.2%US$338.00US$162.00US$229.2217
Jul ’24US$195.77
US$237.56
+21.3%
14.5%US$338.00US$169.00US$221.9618
Jun ’24US$176.91
US$237.56
+34.3%
14.5%US$338.00US$169.00US$224.8318
May ’24US$194.71
US$243.53
+25.1%
14.2%US$338.00US$169.00US$211.7517
Apr ’24US$196.24
US$248.00
+26.4%
13.7%US$338.00US$169.00US$208.5619
Mar ’24US$210.08
US$250.94
+19.5%
13.3%US$338.00US$169.00US$209.8118
Feb ’24US$215.85
US$253.33
+17.4%
12.9%US$338.00US$169.00US$209.4818
Jan ’24US$208.21
US$264.67
+27.1%
10.6%US$338.00US$192.00US$210.6218
Dec ’23US$225.39
US$272.94
+21.1%
10.5%US$338.00US$192.00US$194.6918
Nov ’23US$241.15
US$274.06
+13.6%
10.7%US$333.00US$192.00US$178.7218

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

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