L3Harris Technologies, Inc. (LHX) 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

-1.3%

$275.31

vs $278.92 price

Levered DCF

$213.93

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

2.34

Grey zone

Rating

B+

Overall 3 / 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	35.53×	26.52×	32.55×	37.58×	23.25×	36.14×	26.63×	23.52×
P/B	2.91×	2.04×	2.13×	2.16×	2.23×	1.95×	1.94×	6.64×
P/S	2.61×	1.87×	2.06×	2.34×	2.41×	2.22×	0×	3.28×
EV / EBITDA	17.92×	14.65×	18.2×	18.81×	14.17×	17.97×	56.83×	16.46×
Gross margin	25.7%	25.9%	26.3%	28.9%	30.2%	29.2%	0.0%	34.3%
Operating margin	9.8%	9.4%	9.3%	11.3%	11.8%	0.0%	0.0%	16.1%
Net margin	7.3%	7.0%	6.3%	6.2%	10.4%	6.2%	0.0%	14.0%
Current ratio	1.19×	1.08×	0.99×	1.17×	1.4×	1.57×	1.57×	1.14×
Debt / equity	0.57×	0.67×	0.74×	0.42×	0.41×	0.37×	0.35×	1.05×
Interest coverage	3.6×	2.99×	3.31×	6.91×	7.96×	0×	0×	6.54×
Dividend yield	1.6%	2.2%	2.2%	2.2%	1.9%	1.8%	0.8%	1.5%
Payout ratio	56.2%	59.0%	70.7%	81.4%	44.3%	64.8%	0.0%	34.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.2%	7.7%	6.5%	5.7%	9.6%	5.4%	0.0%	28.2%
Return on invested capital	5.1%	5.3%	4.9%	5.6%	5.6%	0.0%	0.0%	10.9%
Return on assets	3.9%	3.6%	2.9%	3.2%	5.3%	3.0%	0.0%	9.4%
Free cash flow yield	4.7%	5.4%	4.1%	4.8%	5.5%	6.0%	1.8%	4.6%
Earnings yield	2.8%	3.8%	3.1%	2.7%	4.3%	2.8%	0.0%	4.3%
Enterprise value	$67.2B	$52.2B	$53.3B	$46.8B	$49.8B	$46.9B	$50.8B	$25.3B
Net debt / EBITDA	2.71×	3.47×	4.57×	2.77×	1.96×	2.46×	7.87×	1.95×
Cash conversion cycle (days)	55	65	67	72	62	70	0	65