DCF Tool

LMT

Lockheed Martin Corp. – Guided Missile and Space Vehicle Manufacturing
Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 114,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
Analysis Results
Intrinsic Value $2,058.62
Latest Price $447.99
Relative Value 78% 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 15.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.2%, 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 11.3 10.9
2023 13.0 12.1
2024 15.0 13.4
2025 17.3 14.9
2026 19.9 16.6
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 597 billion. This corresponds to a present value of 480 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 67.9 billion. Adding in the terminal value gives a total present value of 548 billion.

There are presently 266.0 million outstanding shares, so the intrinsic value per share is 2058.62.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 39,630,000,000
Current Cash 7,208,000,000
Current Liabilities 27,994,000,000
Current Debt 12,000,000
Non-Cash Working Capital (NCWC) 4,440,000,000
Change in NCWC 1,655,000,000
EBIT 18,388,000,000
Tax Provision 2,470,000,000
Depreciation and Amortization 2,728,000,000
Capital Expenditure -3,044,000,000
Unlevered Free Cash Flow 16,719,161,589
Current Assets 19,378,000,000
Current Cash 3,160,000,000
Current Liabilities 13,933,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 2,785,000,000
Change in NCWC -74,000,000
EBIT 8,844,000,000
Tax Provision 1,347,000,000
Depreciation and Amortization 1,290,000,000
Capital Expenditure -1,766,000,000
Unlevered Free Cash Flow 6,847,385,792
Current Assets 17,095,000,000
Current Cash 1,514,000,000
Current Liabilities 13,972,000,000
Current Debt 1,250,000,000
Non-Cash Working Capital (NCWC) 2,859,000,000
Change in NCWC 426,000,000
EBIT 8,521,000,000
Tax Provision 1,011,000,000
Depreciation and Amortization 1,189,000,000
Capital Expenditure -1,484,000,000
Unlevered Free Cash Flow 7,462,284,352
Current Assets 16,103,000,000
Current Cash 772,000,000
Current Liabilities 14,398,000,000
Current Debt 1,500,000,000
Non-Cash Working Capital (NCWC) 2,433,000,000
Change in NCWC -280,000,000
EBIT 7,489,000,000
Tax Provision 792,000,000
Depreciation and Amortization 1,161,000,000
Capital Expenditure -1,278,000,000
Unlevered Free Cash Flow 6,076,020,554
Current Assets 17,461,000,000
Current Cash 2,861,000,000
Current Liabilities 12,637,000,000
Current Debt 750,000,000
Non-Cash Working Capital (NCWC) 2,713,000,000
Change in NCWC 1,984,000,000
EBIT 5,755,000,000
Tax Provision 3,340,000,000
Depreciation and Amortization 1,195,000,000
Capital Expenditure -1,177,000,000
Unlevered Free Cash Flow 4,108,926,361
Current Assets 15,108,000,000
Current Cash 1,837,000,000
Current Liabilities 12,542,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 729,000,000
Change in NCWC -1,278,000,000
EBIT 5,585,000,000
Tax Provision 1,133,000,000
Depreciation and Amortization 1,215,000,000
Capital Expenditure -1,063,000,000
Unlevered Free Cash Flow 3,163,910,970
Current Assets 16,198,000,000
Current Cash 1,090,000,000
Current Liabilities 14,057,000,000
Current Debt 956,000,000
Non-Cash Working Capital (NCWC) 2,007,000,000
Change in NCWC 2,236,000,000
EBIT 5,645,000,000
Tax Provision 1,418,000,000
Depreciation and Amortization 1,026,000,000
Capital Expenditure -939,000,000
Unlevered Free Cash Flow 6,374,408,520
Current Assets 12,329,000,000
Current Cash 1,446,000,000
Current Liabilities 11,112,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -229,000,000
Change in NCWC 179,000,000
EBIT 5,716,000,000
Tax Provision 1,644,000,000
Depreciation and Amortization 994,000,000
Capital Expenditure -845,000,000
Unlevered Free Cash Flow 4,256,798,782
Current Assets 13,329,000,000
Current Cash 2,617,000,000
Current Liabilities 11,120,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -408,000,000
Change in NCWC -360,000,000
EBIT 4,904,000,000
Tax Provision 1,205,000,000
Depreciation and Amortization 990,000,000
Capital Expenditure -836,000,000
Unlevered Free Cash Flow 3,275,780,986
Current Assets 13,855,000,000
Current Cash 1,898,000,000
Current Liabilities 12,155,000,000
Current Debt 150,000,000
Non-Cash Working Capital (NCWC) -48,000,000
Change in NCWC 1,573,000,000
EBIT 4,521,000,000
Tax Provision 1,327,000,000
Depreciation and Amortization 988,000,000
Capital Expenditure -942,000,000
Unlevered Free Cash Flow 4,666,678,045

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