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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2025-04-23), Northrop Grumman's Intrinsic Value: Projected FCF is $263.59. The stock price of Northrop Grumman is $472.65. Therefore, Northrop Grumman's Price-to-Intrinsic-Value-Projected-FCF of today is 1.8.
The historical rank and industry rank for Northrop Grumman's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Northrop Grumman was 2.16. The lowest was 1.19. And the median was 1.60.
The historical data trend for Northrop Grumman's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Northrop Grumman Annual Data | |||||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial |
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226.33 | 253.86 | 252.30 | 254.89 | 263.59 |
Northrop Grumman Quarterly Data | ||||||||||||||||||||
Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | Mar25 | |
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial |
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224.87 | 242.99 | 244.62 | 263.59 | - |
For the Aerospace & Defense subindustry, Northrop Grumman's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Northrop Grumman's Free Cash Flow(6 year avg) = $1,989.76.
Northrop Grumman's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Mar25) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (9.9881567514702 | * | 1989.76 | + | 14984 | * | 0.8) | / | 144.900 | |
= | 219.88 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Northrop Grumman (NYSE:NOC) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Northrop Grumman's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 472.65 | / | 219.88429798347 | |
= | 2.15 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Thank you for viewing the detailed overview of Northrop Grumman's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Welsh Mark A Iii | director | 6020 AUGUSTA CIRCLE, COLLEGE STATION TX 77845 |
Kathy J Warden | officer: Corp VP & Pres Info Syst | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Michael A Hardesty | officer: Corp VP, Controller & CAO | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Kathryn G Simpson | officer: Corp VP & General Counsel | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Thomas H Jones | officer: CVP & Pres Aeronautics Systems | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Roshan S Roeder | officer: CVP & Pres. Defense Systems | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Mark A Caylor | officer: Corp VP & Pres ESS | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Robert J. Fleming | officer: CVP and Pres. Space Systems | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Kimberly A. Ross | director | C/O AVON PRODUCTS,INC., 1345 AVENUE OF THE AMERICAS`, NEW YORK NY 10105-0196 |
Mary A Winston | director | 557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012 |
David T Perry | officer: CVP Chief Global Bus Dev Off | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Lucy C Ryan | officer: Corp VP, Communications | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Mary D Petryszyn | officer: CVP, Pres, Defense Systems | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Sheila C. Cheston | officer: Corp. VP & General Counsel | C/O NORTHROP GRUMMAN CORPORATION, 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
Stephen F. O'bryan | officer: CVP Global Bus Dev Officer | 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
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