LHX
L3Harris Technologies, Inc.
$260.23
Platform & Compounding FCF
70%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 4.8% below fair value
You pay
$260.23
Bear
$191.69
Fair
$273.49
Bull
$353.12
Bear
$191.69
-26.3%
6% stage 1 growth, 11% discount
Fair
$273.49
+5.1%
10% stage 1 growth, 11% discount
Bull
$353.12
+35.7%
13% stage 1 growth, 11% discount
Adjust Assumptions
9.7%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
20.2x
Market is pricing in (growth)
9.1%
vs 9.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (34 analysts)
$340.00
Divergence from AlphaVal
20%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $273.49 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