Lockheed Stock Valuation

LMT
 Stock
  

USD 386.29  3.50  0.90%   

What would the acquisition value of Lockheed Martin Corp be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Lockheed Martin, is its stock price multiplied by the total number of shares outstanding, calculating Lockheed Martin's enterprise value requires a different approach. It uses Lockheed Martin's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Lockheed Martin Corp secures a last-minute Real Value of $395.02 per share. The latest price of the firm is $386.29. At this time, the firm appears to be fairly valued. Our model forecasts the value of Lockheed Martin Corp from analyzing the firm fundamentals such as Profit Margin of 7.33 %, return on equity of 52.39 %, and Current Valuation of 119.59 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Lockheed Martin Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Lockheed Martin's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 386.29
Please note that Lockheed Martin's price fluctuation is very steady at this time. Calculation of the real value of Lockheed Martin Corp is based on 3 months time horizon. Increasing Lockheed Martin's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lockheed Martin Corp is useful when determining the fair value of the Lockheed stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lockheed Martin. Since Lockheed Martin is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lockheed Stock. However, Lockheed Martin's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
347.66
Downside
395.02
Real Value
396.19
Upside
Estimating the potential upside or downside of Lockheed Martin Corp helps investors to forecast how Lockheed stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lockheed Martin more accurately as focusing exclusively on Lockheed Martin's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
393.57419.34445.11
Details
Hype
Prediction
LowEstimated ValueHigh
385.30386.47387.64
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
10.3210.6711.01
Details
8 Analysts
Consensus
LowTarget PriceHigh
350.00389.89450.00
Details

Lockheed Martin Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lockheed Martin's current stock value. Our valuation model uses many indicators to compare Lockheed Martin value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lockheed Martin competition to find correlations between indicators driving Lockheed Martin's intrinsic value. More Info.
Lockheed Martin Corp is currently regarded as number one stock in price to book category among related companies. It is currently regarded as number one stock in price to earning category among related companies reporting about  0.92  of Price to Earning per Price to Book. The ratio of Price to Book to Price to Earning for Lockheed Martin Corp is roughly  1.09 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lockheed Martin by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lockheed Martin's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lockheed Martin's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lockheed Martin's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lockheed Martin and how it compares across the competition.

About Lockheed Martin Valuation

The stock valuation mechanism determines the current worth of Lockheed Martin Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lockheed Martin Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lockheed Martin Corp based exclusively on its fundamental and basic technical indicators. By analyzing Lockheed Martin's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lockheed Martin's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lockheed Martin. We calculate exposure to Lockheed Martin's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lockheed Martin's related companies.
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland. Lockheed Martin operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 114000 people.
Lockheed Martin's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Lockheed Martin's value is low or high relative to the company's performance and growth projections. Determining the market value of Lockheed Martin can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Lockheed Martin represents a small ownership stake in the entity. As a stockholder of Lockheed, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Lockheed Martin Dividends Analysis For Valuation

There are various types of dividends Lockheed Martin can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lockheed shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lockheed Martin Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lockheed pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lockheed Martin by the value of the dividends paid out.

Lockheed Martin Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Lockheed Martin does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.03
Earnings Quarterly Growth-83.00%
Revenue Growth-9.30%
Payout Ratio63.58%
Enterprise Value To Ebitda16.72
Earnings Growth-82.20%
Enterprise Value To Revenue1.86
Additionally, see Correlation Analysis. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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When running Lockheed Martin Corp price analysis, check to measure Lockheed Martin's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lockheed Martin is operating at the current time. Most of Lockheed Martin's value examination focuses on studying past and present price action to predict the probability of Lockheed Martin's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lockheed Martin's price. Additionally, you may evaluate how the addition of Lockheed Martin to your portfolios can decrease your overall portfolio volatility.
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Is Lockheed Martin's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lockheed Martin. If investors know Lockheed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lockheed Martin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lockheed Martin Corp is measured differently than its book value, which is the value of Lockheed that is recorded on the company's balance sheet. Investors also form their own opinion of Lockheed Martin's value that differs from its market value or its book value, called intrinsic value, which is Lockheed Martin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lockheed Martin's market value can be influenced by many factors that don't directly affect Lockheed Martin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lockheed Martin's value and its price as these two are different measures arrived at by different means. Investors typically determine Lockheed Martin value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lockheed Martin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.