DCF Tool

NOC

Northrop Grumman Corp. – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Northrop Grumman solves the toughest problems in space, aeronautics, defense and cyberspace to meet the ever evolving needs of our customers worldwide. Its 90,000 employees define possible every day using science, technology and engineering to create and deliver advanced systems, products and services.
Analysis Results
Intrinsic Value $778.81
Latest Price $474.14
Relative Value 39% 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 6.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.4%, 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 3.56 3.4
2023 3.79 3.45
2024 4.03 3.5
2025 4.29 3.55
2026 4.56 3.6
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 137 billion. This corresponds to a present value of 103 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.5 billion. Adding in the terminal value gives a total present value of 120 billion.

There are presently 155.0 million outstanding shares, so the intrinsic value per share is 778.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 24,852,000,000
Current Cash 7,060,000,000
Current Liabilities 19,060,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,268,000,000
Change in NCWC -2,125,000,000
EBIT 7,342,000,000
Tax Provision 3,866,000,000
Depreciation and Amortization 2,478,000,000
Capital Expenditure -2,830,000,000
Unlevered Free Cash Flow 3,277,163,123
Current Assets 15,344,000,000
Current Cash 4,907,000,000
Current Liabilities 9,580,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 857,000,000
Change in NCWC 1,851,000,000
EBIT 4,065,000,000
Tax Provision 539,000,000
Depreciation and Amortization 1,267,000,000
Capital Expenditure -1,420,000,000
Unlevered Free Cash Flow 5,175,276,019
Current Assets 10,685,000,000
Current Cash 2,245,000,000
Current Liabilities 9,434,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -994,000,000
Change in NCWC -821,000,000
EBIT 3,969,000,000
Tax Provision 300,000,000
Depreciation and Amortization 1,018,000,000
Capital Expenditure -1,264,000,000
Unlevered Free Cash Flow 2,434,692,307
Current Assets 9,680,000,000
Current Cash 1,579,000,000
Current Liabilities 8,274,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -173,000,000
Change in NCWC 1,668,000,000
EBIT 3,780,000,000
Tax Provision 513,000,000
Depreciation and Amortization 800,000,000
Capital Expenditure -1,249,000,000
Unlevered Free Cash Flow 4,480,790,486
Current Assets 16,349,000,000
Current Cash 11,225,000,000
Current Liabilities 6,965,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,841,000,000
Change in NCWC -526,000,000
EBIT 3,299,000,000
Tax Provision 1,034,000,000
Depreciation and Amortization 475,000,000
Capital Expenditure -928,000,000
Unlevered Free Cash Flow 1,201,218,104
Current Assets 6,856,000,000
Current Cash 2,541,000,000
Current Liabilities 5,630,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,315,000,000
Change in NCWC 127,000,000
EBIT 3,193,000,000
Tax Provision 723,000,000
Depreciation and Amortization 456,000,000
Capital Expenditure -920,000,000
Unlevered Free Cash Flow 2,066,215,874
Current Assets 6,334,000,000
Current Cash 2,319,000,000
Current Liabilities 5,457,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,442,000,000
Change in NCWC 129,000,000
EBIT 3,076,000,000
Tax Provision 800,000,000
Depreciation and Amortization 467,000,000
Capital Expenditure -471,000,000
Unlevered Free Cash Flow 2,318,992,831
Current Assets 8,184,000,000
Current Cash 3,863,000,000
Current Liabilities 5,892,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,571,000,000
Change in NCWC -94,000,000
EBIT 3,196,000,000
Tax Provision 868,000,000
Depreciation and Amortization 462,000,000
Capital Expenditure -561,000,000
Unlevered Free Cash Flow 2,058,455,226
Current Assets 9,488,000,000
Current Cash 5,150,000,000
Current Liabilities 5,815,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,477,000,000
Change in NCWC 49,000,000
EBIT 3,123,000,000
Tax Provision 911,000,000
Depreciation and Amortization 495,000,000
Capital Expenditure -364,000,000
Unlevered Free Cash Flow 2,309,268,599
Current Assets 8,392,000,000
Current Cash 3,862,000,000
Current Liabilities 6,056,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,526,000,000
Change in NCWC 102,000,000
EBIT 3,130,000,000
Tax Provision 987,000,000
Depreciation and Amortization 510,000,000
Capital Expenditure -331,000,000
Unlevered Free Cash Flow 2,369,074,198

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