Lockheed Martin Corporation

NYSE:LMT Stock Report

Market Cap: US$126.4b

Lockheed Martin Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: LMT ($534.73) is trading below our estimate of fair value ($745.48)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LMT. This is calculated by dividing LMT's market cap by their current earnings.
What is LMT's PE Ratio?
PE Ratio19x
EarningsUS$6.68b
Market CapUS$126.40b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30x
RTX RTX
33.6x15.4%US$158.3b
GE General Electric
35x12.1%US$192.2b
GD General Dynamics
21.1x9.2%US$77.1b
NOC Northrop Grumman
30.2x12.0%US$71.5b
LMT Lockheed Martin
19x2.0%US$126.4b

Price-To-Earnings vs Peers: LMT is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (30x).

Price to Earnings Ratio vs Industry

How does LMT'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
LMT 19.0xIndustry Avg. 34.4xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LMT is good value based on its Price-To-Earnings Ratio (19x) compared to the US Aerospace & Defense industry average (34.4x).

Price to Earnings Ratio vs Fair Ratio

What is LMT'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.

LMT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: LMT is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

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 LMT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$534.73
US$603.69
+12.9%
11.4%US$704.00US$434.00n/a21
Nov ’25US$545.35
US$603.69
+10.7%
11.4%US$704.00US$434.00n/a21
Oct ’25US$605.86
US$557.86
-7.9%
10.7%US$704.00US$405.00n/a20
Sep ’25US$568.10
US$546.66
-3.8%
9.0%US$635.00US$405.00n/a20
Aug ’25US$548.86
US$536.86
-2.2%
8.8%US$635.00US$405.00n/a20
Jul ’25US$466.44
US$490.37
+5.1%
7.2%US$546.00US$378.00n/a19
Jun ’25US$470.34
US$488.84
+3.9%
7.1%US$546.00US$378.00n/a19
May ’25US$461.73
US$487.86
+5.7%
6.8%US$546.00US$378.00n/a21
Apr ’25US$452.79
US$482.87
+6.6%
6.8%US$546.00US$380.00n/a22
Mar ’25US$426.46
US$482.96
+13.2%
6.9%US$550.00US$380.00n/a22
Feb ’25US$429.77
US$483.88
+12.6%
6.9%US$550.00US$380.00n/a22
Jan ’25US$453.24
US$482.36
+6.4%
8.2%US$550.00US$364.00n/a21
Dec ’24US$449.41
US$480.64
+6.9%
8.3%US$550.00US$364.00n/a21
Nov ’24US$452.38
US$480.64
+6.2%
8.3%US$550.00US$364.00US$545.3521
Oct ’24US$408.96
US$496.19
+21.3%
8.4%US$555.00US$374.00US$605.8621
Sep ’24US$448.18
US$499.25
+11.4%
8.1%US$555.00US$374.00US$568.1020
Aug ’24US$451.28
US$500.05
+10.8%
8.1%US$555.00US$374.00US$548.8620
Jul ’24US$460.38
US$503.00
+9.3%
9.3%US$579.00US$371.00US$466.4420
Jun ’24US$449.67
US$503.00
+11.9%
9.3%US$579.00US$371.00US$470.3420
May ’24US$469.43
US$518.85
+10.5%
14.8%US$780.00US$371.00US$461.7320
Apr ’24US$472.73
US$502.30
+6.3%
15.6%US$774.00US$334.00US$452.7920
Mar ’24US$474.33
US$502.30
+5.9%
15.6%US$774.00US$334.00US$426.4620
Feb ’24US$462.25
US$497.20
+7.6%
16.3%US$774.00US$334.00US$429.7720
Jan ’24US$486.49
US$497.90
+2.3%
15.6%US$759.00US$384.00US$453.2420
Dec ’23US$483.69
US$465.50
-3.8%
10.4%US$550.00US$361.00US$449.4118
Nov ’23US$485.63
US$460.44
-5.2%
9.7%US$515.00US$361.00US$452.3818

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

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