RTX — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($202.62)
DCF	$103.53	-48.9%
Graham Number	$73.65	-63.7%
Reverse DCF	—	implied g: 22.2%
DDM	$56.03	-72.3%
EV/EBITDA	$204.03	+0.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $6.46B

Near-term growth (yrs 1–5)(%)Rev: 12.1% / EPS: 8.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.75%

Computed WACC: 5.75%

Cost of equity (Re)6.60%(Rf 4.30% + β 0.42 × 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)87.19%

Debt weight (D/V)12.81%

Results

Intrinsic Value / share$242.40

Current Price$202.62

Upside / Downside+19.6%

Net Debt (used)$32.52B

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

WACC \ Near-term	4.1%	8.1%	12.1%	16.1%	20.1%
7.0%	$109.43	$135.20	$164.94	$199.08	$238.13
8.0%	$84.19	$104.76	$128.47	$155.67	$186.74
9.0%	$66.77	$83.76	$103.32	$125.74	$151.33
10.0%	$54.04	$68.42	$84.96	$103.90	$125.49
11.0%	$44.34	$56.74	$70.99	$87.28	$105.85

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.96

Book Value / share($)Yahoo: $48.61

Results

Graham Number$73.65

Current Price$202.62

Margin of Safety-63.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.75%

Terminal growth rate(%)

Computed WACC: 5.75%

Cost of equity (Re)6.60%(Rf 4.30% + β 0.42 × 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)87.19%

Debt weight (D/V)12.81%

Results

Current Price$202.62

Implied Near-term FCF Growth9.5%

Historical Revenue Growth12.1%

Historical Earnings Growth8.3%

Base FCF (TTM)$6.46B

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: $2.72

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$56.03

Current Price$202.62

Upside / Downside-72.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $14.73B

Target EV/EBITDA multipleCurrent: 20.8×

Net Debt($B)Default: $32.52B

Results

Implied Equity Value / share$204.03

Current Price$202.62

Upside / Downside+0.7%

Implied EV$306.38B

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

Mult \ Net Debt	$16.52B	$24.52B	$32.52B	$40.52B	$48.52B
16.8x	$172.04	$166.08	$160.12	$154.16	$148.20
18.8x	$193.99	$188.03	$182.07	$176.11	$170.15
20.8x	$215.95	$209.99	$204.03	$198.07	$192.11
22.8x	$237.90	$231.94	$225.98	$220.02	$214.06
24.8x	$259.86	$253.90	$247.94	$241.98	$236.02

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