KTOS — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($88.95)
DCF	$-32.17	-136.2%
Graham Number	$5.88	-93.4%
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	$90.72	+2.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$126.89M

Near-term growth (yrs 1–5)(%)Rev: 21.9% / EPS: 18.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.58%

Computed WACC: 10.58%

Cost of equity (Re)10.60%(Rf 4.30% + β 1.15 × ERP 5.50%)

Cost of debt (Rd)11.00%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.05%

Debt weight (D/V)0.95%

Results

Intrinsic Value / share$-24.33

Current Price$88.95

Upside / Downside-127.3%

Net Debt (used)-$414.80M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	13.9%	17.9%	21.9%	25.9%	29.9%
7.0%	$-35.49	$-42.30	$-50.08	$-58.93	$-68.95
8.0%	$-27.89	$-33.28	$-39.43	$-46.42	$-54.33
9.0%	$-22.67	$-27.08	$-32.11	$-37.82	$-44.29
10.0%	$-18.87	$-22.57	$-26.79	$-31.58	$-36.99
11.0%	$-15.99	$-19.16	$-22.76	$-26.85	$-31.47

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $0.13

Book Value / share($)Yahoo: $11.82

Results

Graham Number$5.88

Current Price$88.95

Margin of Safety-93.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.58%

Terminal growth rate(%)

Computed WACC: 10.58%

Cost of equity (Re)10.60%(Rf 4.30% + β 1.15 × ERP 5.50%)

Cost of debt (Rd)11.00%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.05%

Debt weight (D/V)0.95%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$88.95

Implied Near-term FCF Growth—

Historical Revenue Growth21.9%

Historical Earnings Growth18.6%

Base FCF (TTM)-$126.89M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$88.95

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $74.80M

Target EV/EBITDA multipleCurrent: 201.0×

Net Debt($B)Default: -$414.80M

Results

Implied Equity Value / share$90.72

Current Price$88.95

Upside / Downside+2.0%

Implied EV$15.04B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.41B	-$1.41B	-$414.80M	$585.20M	$1.59B
197.0x	$100.71	$94.83	$88.96	$83.09	$77.22
199.0x	$101.58	$95.71	$89.84	$83.97	$78.10
201.0x	$102.46	$96.59	$90.72	$84.85	$78.98
203.0x	$103.34	$97.47	$91.60	$85.73	$79.86
205.0x	$104.22	$98.35	$92.48	$86.61	$80.73

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