LHX
L3Harris Technologies, Inc.
$304.05
Platform & Compounding FCF
70%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 28.0% above fair value
You pay
$304.05
Bear
$162.16
Fair
$237.54
Bull
$311.35
Bear
$162.16
-46.7%
6% stage 1 growth, 11% discount
Fair
$237.54
-21.9%
10% stage 1 growth, 11% discount
Bull
$311.35
+2.4%
13% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
27.8x
Market is pricing in (growth)
13.4%
vs 9.9% base
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 $273.40 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $237.54 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