Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. It operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (23 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $437.58 Implied EV: $76.91B |
What growth rate is the market pricing in at $531?
The market implies +8.7% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +11.9%, reflecting heavy growth investment.
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
"Market is pessimistic — investigate whether fears are temporary or structural"
Price appears to exceed estimated intrinsic value — limited margin of safety at current levels
