DCF Tool

LHX

L3Harris Technologies Inc – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
L3Harris Technologies is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers' mission-critical needs. The company provides advanced defense and commercial technologies across air, land, sea, space and cyber domains. L3Harris has approximately $18 billion in annual revenue and 48,000 employees, with customers in more than 100 countries.
Analysis Results
Intrinsic Value $812.64
Latest Price $236.79
Relative Value 71% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 23.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.57 2.46
2023 3.16 2.91
2024 3.9 3.45
2025 4.81 4.08
2026 5.93 4.83
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 178 billion. This corresponds to a present value of 139 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.7 billion. Adding in the terminal value gives a total present value of 157 billion.

There are presently 193.0 million outstanding shares, so the intrinsic value per share is 812.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,359,000,000
Current Cash 941,000,000
Current Liabilities 4,551,000,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) 880,000,000
Change in NCWC -281,000,000
EBIT 2,096,000,000
Tax Provision 440,000,000
Depreciation and Amortization 967,000,000
Capital Expenditure -342,000,000
Unlevered Free Cash Flow 2,036,040,297
Current Assets 6,667,000,000
Current Cash 1,276,000,000
Current Liabilities 4,240,000,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 1,161,000,000
Change in NCWC 622,000,000
EBIT 1,993,000,000
Tax Provision 234,000,000
Depreciation and Amortization 1,032,000,000
Capital Expenditure -368,000,000
Unlevered Free Cash Flow 2,926,229,954
Current Assets 2,578,000,000
Current Cash 530,000,000
Current Liabilities 2,268,000,000
Current Debt 759,000,000
Non-Cash Working Capital (NCWC) 539,000,000
Change in NCWC 10,000,000
EBIT 1,092,000,000
Tax Provision 160,000,000
Depreciation and Amortization 258,000,000
Capital Expenditure -161,000,000
Unlevered Free Cash Flow 1,042,018,867
Current Assets 2,223,000,000
Current Cash 288,000,000
Current Liabilities 1,788,000,000
Current Debt 382,000,000
Non-Cash Working Capital (NCWC) 529,000,000
Change in NCWC 232,000,000
EBIT 1,122,000,000
Tax Provision 205,000,000
Depreciation and Amortization 259,000,000
Capital Expenditure -136,000,000
Unlevered Free Cash Flow 1,228,609,071
Current Assets 2,073,000,000
Current Cash 484,000,000
Current Liabilities 1,926,000,000
Current Debt 634,000,000
Non-Cash Working Capital (NCWC) 297,000,000
Change in NCWC -257,000,000
EBIT 1,073,000,000
Tax Provision 267,000,000
Depreciation and Amortization 311,000,000
Capital Expenditure -119,000,000
Unlevered Free Cash Flow 691,435,359
Current Assets 2,608,000,000
Current Cash 487,000,000
Current Liabilities 1,964,000,000
Current Debt 397,000,000
Non-Cash Working Capital (NCWC) 554,000,000
Change in NCWC -371,000,000
EBIT 1,149,000,000
Tax Provision 266,000,000
Depreciation and Amortization 361,000,000
Capital Expenditure -152,000,000
Unlevered Free Cash Flow 486,780,687
Current Assets 3,524,000,000
Current Cash 481,000,000
Current Liabilities 2,281,000,000
Current Debt 163,000,000
Non-Cash Working Capital (NCWC) 925,000,000
Change in NCWC 549,600,000
EBIT 713,000,000
Tax Provision 143,000,000
Depreciation and Amortization 244,000,000
Capital Expenditure -148,000,000
Unlevered Free Cash Flow 1,144,849,475
Current Assets 1,991,300,000
Current Cash 561,000,000
Current Liabilities 1,114,600,000
Current Debt 59,700,000
Non-Cash Working Capital (NCWC) 375,400,000
Change in NCWC -112,300,000
EBIT 881,900,000
Tax Provision 256,200,000
Depreciation and Amortization 204,300,000
Capital Expenditure -212,600,000
Unlevered Free Cash Flow 477,238,169
Current Assets 1,948,100,000
Current Cash 321,000,000
Current Liabilities 1,297,400,000
Current Debt 158,000,000
Non-Cash Working Capital (NCWC) 487,700,000
Change in NCWC -506,500,000
EBIT 812,300,000
Tax Provision 202,700,000
Depreciation and Amortization 220,600,000
Capital Expenditure -178,200,000
Unlevered Free Cash Flow 100,452,166
Current Assets 2,600,400,000
Current Cash 356,000,000
Current Liabilities 1,414,400,000
Current Debt 164,200,000
Non-Cash Working Capital (NCWC) 994,200,000
Change in NCWC 389,900,000
EBIT 941,500,000
Tax Provision 286,000,000
Depreciation and Amortization 260,300,000
Capital Expenditure -233,800,000
Unlevered Free Cash Flow 1,038,065,102

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