Northrop Stock Valuation

NOC
 Stock
  

USD 461.81  2.86  0.62%   

Do you wonder what the value of Northrop Grumman Corp is? 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 Northrop Grumman, is its stock price multiplied by the total number of shares outstanding, calculating Northrop Grumman's enterprise value requires a different approach. It uses Northrop Grumman's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of June 29, 2022, Free Cash Flow is expected to decline to about 3.1 B. In addition to that, Enterprise Value is expected to decline to about 60.5 B.
Northrop Grumman Corp secures a last-minute Real Value of $457.3 per share. The latest price of the firm is $461.81. At this time, the firm appears to be fairly valued. Our model forecasts the value of Northrop Grumman Corp from analyzing the firm fundamentals such as Current Valuation of 83.61 B, profit margin of 16.33 %, and Return On Equity of 48.42 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
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Northrop Grumman 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 Northrop Grumman'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 461.81
Please note that Northrop Grumman's price fluctuation is very steady at this time. Calculation of the real value of Northrop Grumman Corp is based on 3 months time horizon. Increasing Northrop Grumman's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Northrop Grumman Corp is useful when determining the fair value of the Northrop stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Northrop Grumman. Since Northrop Grumman is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Northrop Stock. However, Northrop Grumman'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.
455.65
Downside
457.30
Real Value
511.14
Upside
Estimating the potential upside or downside of Northrop Grumman Corp helps investors to forecast how Northrop 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 Northrop Grumman more accurately as focusing exclusively on Northrop Grumman's fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
25.4525.5725.82
Details
Hype
Prediction
LowEstimated ValueHigh
462.97464.62466.27
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.002.012.03
Details
10 Analysts
Consensus
LowTarget PriceHigh
331.00398.91460.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Northrop Grumman's intrinsic value based on its ongoing forecasts of Northrop Grumman's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Northrop Grumman's closest peers. When choosing an evaluation method for Northrop Grumman Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Northrop Valuation Drivers Correlation

Many accounts on the financial statements of Northrop Grumman Corp are highly interrelated and sometimes correlated. Consequently, when conducting Northrop's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Northrop
Click cells to compare fundamentals

Northrop Valuation Trend

Knowing Northrop Grumman's actual value is paramount for traders to make sound investment determinations. Northrop Grumman's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Northrop Grumman's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Northrop Grumman's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Northrop Market Cap

Northrop Grumman Corp is considered to be number one stock in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is now estimated at about 1.18 Trillion. Northrop Grumman holds roughly 72.08 Billion in market capitalization claiming about 6% of stocks in Aerospace & Defense industry.
Capitalization  Total debt  Valuation  Revenue  Workforce

Northrop Grumman Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Northrop Grumman's current stock value. Our valuation model uses many indicators to compare Northrop Grumman value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Northrop Grumman competition to find correlations between indicators driving Northrop Grumman's intrinsic value. More Info.
Northrop Grumman Corp is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  0.38  of Price to Sales per Price to Book. The ratio of Price to Book to Price to Sales for Northrop Grumman Corp is roughly  2.66 . As of June 29, 2022, Price to Sales Ratio is expected to decline to 1.58. Comparative valuation analysis is a catch-all model that can be used if you cannot value Northrop Grumman by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northrop Grumman'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 Northrop Grumman'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 Northrop Grumman'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 Northrop Grumman and how it compares across the competition.

About Northrop Grumman Valuation

The equity valuation mechanism determines the current worth of Northrop Grumman Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Northrop Grumman Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Northrop Grumman Corp based exclusively on its fundamental and basic technical indicators. By analyzing Northrop Grumman'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 Northrop Grumman'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 Northrop Grumman. We calculate exposure to Northrop Grumman's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Northrop Grumman's related companies.
Last ReportedProjected for 2022
Gross Profit8.6 BB
Profit Margin 19.64  21.19 
Northrop Grumman Corporation operates as an aerospace and defense company worldwide. The company was founded in 19 and is based in Falls Church, Virginia. Northrop Grumman operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 90000 people.
Northrop Grumman's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Northrop Grumman's value is low or high relative to the company's performance and growth projections. Determining the market value of Northrop Grumman can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Northrop Grumman represents a small ownership stake in the entity. As a stockholder of Northrop, 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.

Northrop Grumman Dividends Analysis For Valuation

The current year Dividend Yield is expected to grow to 0.0178, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (925.4 M). . Northrop Grumman Earnings per Basic Share are projected to increase significantly based on the last few years of reporting. The past year's Earnings per Basic Share were at 43.70. The current year Earnings per Diluted Share is expected to grow to 46.98, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 9.2 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-857.7 M-925.4 M
Dividend Yield 0.0171  0.0178 
Dividends per Basic Common Share 6.52  5.38 
There are various types of dividends Northrop Grumman 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 Northrop 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 Northrop Grumman Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Northrop pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Northrop Grumman by the value of the dividends paid out.

Northrop Grumman 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 Northrop Grumman 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 Ratio1.13
Earnings Quarterly Growth-56.50%
Revenue Growth-3.90%
Payout Ratio17.34%
Enterprise Value To Ebitda9.49
Earnings Growth-54.60%
Enterprise Value To Revenue2.37

Northrop Grumman Current Valuation Indicators

Valuation refers to the process of determining the present value of Northrop Grumman Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Northrop we look at many different elements of the entity such as Northrop's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Northrop Grumman's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Northrop Grumman's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Northrop Grumman, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Northrop Grumman's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Northrop Grumman's worth.
Additionally, see Stocks Correlation. Note that the Northrop Grumman Corp information on this page should be used as a complementary analysis to other Northrop Grumman's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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Is Northrop Grumman'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 Northrop Grumman. If investors know Northrop 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 Northrop Grumman 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 Northrop Grumman Corp is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman'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 Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman'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 Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine Northrop Grumman value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman'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.