LMT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($658.08)
DCF	$410056.79	+62211.1%
Graham Number	$119.21	-81.9%
Reverse DCF	—	implied g: 15.4%
DDM	$278.10	-57.7%
EV/EBITDA	$658.07	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.28B

Near-term growth (yrs 1–5)(%)Rev: 9.1% / EPS: 161.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.84%

Computed WACC: 4.84%

Cost of equity (Re)5.56%(Rf 4.30% + β 0.23 × 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)86.99%

Debt weight (D/V)13.01%

Results

Intrinsic Value / share$1532032.70

Current Price$658.08

Upside / Downside+232703.4%

Net Debt (used)$18.65B

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

WACC \ Near-term	153.0%	157.0%	161.0%	165.0%	169.0%
7.0%	$583466.53	$631046.52	$681681.21	$735515.41	$792698.42
8.0%	$444798.11	$481064.89	$519659.74	$560693.01	$604278.47
9.0%	$350992.38	$379606.31	$410056.79	$442430.85	$476818.25
10.0%	$283934.12	$307077.51	$331706.10	$357890.28	$385702.61
11.0%	$234047.68	$253121.57	$273419.30	$294998.87	$317920.06

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $21.52

Book Value / share($)Yahoo: $29.35

Results

Graham Number$119.21

Current Price$658.08

Margin of Safety-81.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.84%

Terminal growth rate(%)

Computed WACC: 4.84%

Cost of equity (Re)5.56%(Rf 4.30% + β 0.23 × 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)86.99%

Debt weight (D/V)13.01%

Results

Current Price$658.08

Implied Near-term FCF Growth-1.3%

Historical Revenue Growth9.1%

Historical Earnings Growth161.0%

Base FCF (TTM)$5.28B

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: $13.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$278.10

Current Price$658.08

Upside / Downside-57.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.29B

Target EV/EBITDA multipleCurrent: 20.5×

Net Debt($B)Default: $18.65B

Results

Implied Equity Value / share$658.07

Current Price$658.08

Upside / Downside-0.0%

Implied EV$170.06B

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

Mult \ Net Debt	$8.65B	$13.65B	$18.65B	$23.65B	$28.65B
16.5x	$557.49	$535.76	$514.03	$492.30	$470.57
18.5x	$629.51	$607.78	$586.05	$564.32	$542.58
20.5x	$701.53	$679.80	$658.07	$636.33	$614.60
22.5x	$773.55	$751.82	$730.08	$708.35	$686.62
24.5x	$845.57	$823.83	$802.10	$780.37	$758.64

← Overview Financial Statements ← Companies