L3Harris Technologies, Inc.

NYSE:LHX Stock Report

Market Cap: US$40.5b

L3Harris Technologies Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($213.55) is trading below our estimate of fair value ($420.7)

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 Ratio33.6x
EarningsUS$1.21b
Market CapUS$40.50b

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
41.9x16.0%US$45.0b
NOC Northrop Grumman
28.8x12.1%US$68.4b
GD General Dynamics
19.9x8.9%US$72.4b
AXON Axon Enterprise
162x17.7%US$48.2b
LHX L3Harris Technologies
33.6x20.7%US$40.5b

Price-To-Earnings vs Peers: LHX is good value based on its Price-To-Earnings Ratio (33.6x) 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
2.9xn/aUS$50.31m
ETCC Environmental Tectonics
4.7xn/aUS$29.89m
AWIN AERWINS Technologies
0.00006xn/aUS$184.00
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
LHX 33.6xIndustry Avg. 33.2xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LHX is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the US Aerospace & Defense industry average (33.2x).

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 Ratio33.6x
Fair PE Ratio31.6x

Price-To-Earnings vs Fair Ratio: LHX is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the estimated Fair Price-To-Earnings Ratio (31.6x).

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 LHX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$213.55
US$278.09
+30.2%
8.8%US$324.00US$206.00n/a23
Dec ’25US$246.25
US$279.96
+13.7%
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$162.00US$246.2523
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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 08:05
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/27
Annual Earnings2023/12/29

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

L3Harris Technologies, Inc. is covered by 49 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Peter ArmentBaird
Ishan MajumdarBaptista Research