LHX — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($371.03)
DCF	$198.31	-46.6%
Graham Number	$141.93	-61.7%
Reverse DCF	—	implied g: 13.9%
DDM	$103.00	-72.2%
EV/EBITDA	$378.48	+2.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.73B

Near-term growth (yrs 1–5)(%)Rev: 2.3% / EPS: -32.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.52%

Computed WACC: 6.52%

Cost of equity (Re)7.63%(Rf 4.30% + β 0.61 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)85.36%

Debt weight (D/V)14.64%

Results

Intrinsic Value / share$358.36

Current Price$371.03

Upside / Downside-3.4%

Net Debt (used)$10.83B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$200.51	$252.79	$313.60	$383.99	$465.06
8.0%	$154.51	$196.59	$245.46	$301.96	$366.95
9.0%	$122.64	$157.67	$198.31	$245.22	$299.11
10.0%	$99.24	$129.13	$163.74	$203.65	$249.45
11.0%	$81.32	$107.29	$137.32	$171.90	$211.53

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $8.52

Book Value / share($)Yahoo: $105.09

Results

Graham Number$141.93

Current Price$371.03

Margin of Safety-61.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.52%

Terminal growth rate(%)

Computed WACC: 6.52%

Cost of equity (Re)7.63%(Rf 4.30% + β 0.61 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)85.36%

Debt weight (D/V)14.64%

Results

Current Price$371.03

Implied Near-term FCF Growth5.5%

Historical Revenue Growth2.3%

Historical Earnings Growth-32.3%

Base FCF (TTM)$2.73B

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: $5.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$103.00

Current Price$371.03

Upside / Downside-72.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.04B

Target EV/EBITDA multipleCurrent: 20.2×

Net Debt($B)Default: $10.83B

Results

Implied Equity Value / share$378.48

Current Price$371.03

Upside / Downside+2.0%

Implied EV$81.52B

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

Mult \ Net Debt	$4.83B	$7.83B	$10.83B	$13.83B	$16.83B
16.2x	$324.02	$307.96	$291.89	$275.83	$259.77
18.2x	$367.31	$351.25	$335.19	$319.13	$303.06
20.2x	$410.60	$394.54	$378.48	$362.42	$346.36
22.2x	$453.90	$437.83	$421.77	$405.71	$389.65
24.2x	$497.19	$481.13	$465.06	$449.00	$432.94

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