LDOS
Leidos Holdings, Inc.
$126.01
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 30.3% below fair value
You pay
$126.01
Bear
$140.45
Fair
$180.81
Bull
$217.34
Bear
$140.45
+11.5%
4% stage 1 growth, 11% discount
Fair
$180.81
+43.5%
7% stage 1 growth, 11% discount
Bull
$217.34
+72.5%
9% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
36%
Implied Market Multiple
13.2x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $200.80 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $180.81 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions