Lockheed Martin Corporation (LMT) 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

+21.0%

$775.77

vs $640.99 price

Levered DCF

$843.21

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.78

Safe 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	22.43×	21.7×	16.39×	22.38×	15.55×	14.55×	17.63×	14.76×
P/B	16.62×	18.29×	16.6×	13.84×	8.96×	16.52×	35.12×	53.44×
P/S	1.49×	1.63×	1.68×	1.94×	1.47×	1.52×	1.84×	1.39×
EV / EBITDA	14.81×	15.15×	12.4×	16.23×	11.21×	10.72×	13.32×	11.45×
Gross margin	10.2%	9.8%	12.5%	12.6%	13.5%	13.2%	14.0%	13.7%
Operating margin	10.3%	9.9%	12.6%	12.7%	13.6%	13.2%	14.3%	13.6%
Net margin	6.7%	7.5%	10.2%	8.7%	9.4%	10.4%	10.4%	9.4%
Current ratio	1.09×	1.13×	1.21×	1.32×	1.42×	1.39×	1.22×	1.12×
Debt / equity	3.23×	3.2×	2.55×	1.68×	1.07×	2.02×	4.05×	10.12×
Interest coverage	6.92×	6.77×	9.29×	13.4×	16.03×	14.63×	13.09×	10.98×
Dividend yield	2.8%	2.6%	2.7%	2.4%	3.0%	2.8%	2.3%	3.2%
Payout ratio	62.4%	57.3%	44.2%	52.6%	46.6%	40.5%	41.0%	46.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	74.6%	84.3%	101.2%	61.9%	57.6%	113.6%	199.2%	362.0%
Return on invested capital	17.4%	16.3%	20.4%	19.3%	20.7%	19.4%	21.1%	19.8%
Return on assets	8.4%	9.6%	13.2%	10.8%	12.4%	13.5%	13.1%	11.2%
Free cash flow yield	6.2%	4.6%	5.5%	4.8%	7.8%	6.5%	5.3%	2.5%
Earnings yield	4.5%	4.6%	6.1%	4.5%	6.4%	6.9%	5.7%	6.8%
Enterprise value	$129.3B	$133.6B	$129.5B	$141.3B	$106.3B	$108.4B	$120.9B	$87.8B
Net debt / EBITDA	2.01×	2.02×	1.53×	1.49×	0.85×	0.89×	1.23×	1.74×
Cash conversion cycle (days)	82	86	88	88	82	81	86	86