Northrop Grumman Corporation (NOC) 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

+58.4%

$880.63

vs $555.86 price

Levered DCF

$761.15

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.18

Safe zone

Rating

A-

Overall 4 / 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	19.57×	16.53×	34.5×	17.26×	8.86×	15.97×	25.9×	13.17×
P/B	4.91×	4.51×	4.79×	5.52×	4.8×	4.81×	6.6×	5.2×
P/S	1.95×	1.68×	1.81×	2.31×	1.74×	1.38×	1.72×	1.41×
EV / EBITDA	13.49×	12.4×	20.28×	12.85×	8.56×	11.45×	17.2×	10.85×
Gross margin	19.8%	20.4%	16.7%	20.4%	20.4%	20.3%	21.5%	22.6%
Operating margin	10.2%	10.6%	6.5%	9.8%	15.8%	11.0%	11.7%	12.6%
Net margin	10.0%	10.2%	5.2%	13.4%	19.6%	8.7%	6.6%	10.7%
Current ratio	1.09×	1×	1.13×	1.06×	1.28×	1.58×	1.12×	1.17×
Debt / equity	1.18×	1.32×	1.21×	1.1×	1.26×	1.7×	1.91×	1.76×
Interest coverage	6.44×	7.04×	4.66×	7.12×	10.16×	6.85×	7.52×	6.73×
Dividend yield	1.6%	1.7%	1.6%	1.2%	1.6%	1.9%	1.5%	1.9%
Payout ratio	30.9%	28.4%	54.3%	21.5%	14.0%	29.9%	39.1%	25.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	25.1%	27.3%	13.9%	32.0%	54.2%	30.1%	25.5%	39.4%
Return on invested capital	9.2%	9.8%	6.4%	9.1%	13.4%	9.7%	10.6%	10.9%
Return on assets	8.1%	8.5%	4.4%	11.2%	16.5%	7.2%	5.5%	8.6%
Free cash flow yield	4.0%	3.8%	3.0%	1.7%	3.5%	5.7%	5.2%	6.1%
Earnings yield	5.1%	6.1%	2.9%	5.8%	11.3%	6.3%	3.9%	7.6%
Enterprise value	$97.2B	$84.8B	$85.8B	$98.8B	$74.8B	$64B	$72.8B	$55.4B
Net debt / EBITDA	2.13×	2.32×	3.51×	1.85×	1.46×	2.33×	3.45×	2.51×
Cash conversion cycle (days)	56	56	69	55	53	53	52	55