Kratos Defense & Security Solutions, Inc. (KTOS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-119.2%

-$7.78

vs $40.45 price

Levered DCF

-$5.75

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

7.74

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	595.92×	241.09×	-289.86×	-35.59×	-970×	39.75×	150.08×	-418.1×
P/B	6.68×	2.92×	2.71×	1.4×	2.56×	3.42×	3.33×	2.82×
P/S	9.91×	3.48×	2.55×	1.46×	2.98×	4.24×	2.66×	2.37×
EV / EBITDA	124.56×	41.71×	37.35×	58.32×	38.33×	48.69×	27.98×	32.66×
Gross margin	22.1%	25.3%	25.9%	25.2%	27.7%	27.2%	26.5%	27.5%
Operating margin	2.1%	2.6%	3.0%	-0.3%	3.4%	3.9%	5.3%	4.9%
Net margin	1.6%	1.4%	-0.9%	-4.1%	-0.2%	10.6%	1.7%	-0.6%
Current ratio	4.06×	2.94×	2.03×	2.49×	3.43×	3.87×	2.86×	3×
Debt / equity	0.07×	0.21×	0.33×	0.32×	0.36×	0.38×	0.6×	0.57×
Interest coverage	2.64×	1.91×	1.43×	-0.16×	1.18×	1.24×	1.62×	1.41×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	1.1%	1.2%	-0.9%	-3.9%	-0.2%	8.6%	2.2%	-0.7%
Return on invested capital	0.8%	1.1%	0.5%	-0.2%	0.2%	2.1%	2.6%	1.7%
Return on assets	0.9%	0.8%	-0.5%	-2.4%	-0.1%	5.1%	1.1%	-0.3%
Free cash flow yield	-1.0%	-0.2%	0.5%	-5.4%	-0.6%	0.3%	0.2%	-0.3%
Earnings yield	0.2%	0.4%	-0.3%	-2.8%	-0.1%	2.5%	0.7%	-0.2%
Enterprise value	$12.9B	$3.9B	$2.9B	$1.5B	$2.4B	$3.1B	$2.1B	$1.6B
Net debt / EBITDA	-4×	-0.51×	3.21×	8.42×	-0.16×	-0.5×	2.29×	2.31×
Cash conversion cycle (days)	165	138	160	170	154	150	139	140