LHX
L3Harris Technologies, Inc.
$245.54
Platform & Compounding FCF
70%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 13.1% below fair value
You pay
$245.54
Bear
$195.66
Fair
$282.49
Bull
$367.81
Bear
$195.66
-20.3%
6% stage 1 growth, 11% discount
Fair
$282.49
+15.0%
10% stage 1 growth, 11% discount
Bull
$367.81
+49.8%
13% stage 1 growth, 11% discount
Adjust Assumptions
10.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
19.3x
Market is pricing in (growth)
8.5%
vs 10.0% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (33 analysts)
$315.00
Divergence from AlphaVal
10%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $282.49 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