GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Northrop Grumman Corp (NYSE:NOC) » Definitions » Intrinsic Value: Projected FCF

NOC (Northrop Grumman) Intrinsic Value: Projected FCF : $263.59 (As of Apr. 23, 2025)


View and export this data going back to 1985. Start your Free Trial

What is Northrop Grumman Intrinsic Value: Projected FCF?

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:

NOC' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.19   Med: 1.6   Max: 2.16
Current: 1.79

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.

NOC's Price-to-Projected-FCF is ranked better than
58.96% of 173 companies
in the Aerospace & Defense industry
Industry Median: 2.32 vs NOC: 1.79

Northrop Grumman Intrinsic Value: Projected FCF Historical Data

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.

* Premium members only.

Northrop Grumman Intrinsic Value: Projected FCF Chart

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 Premium Member Only Premium Member Only 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 224.87 242.99 244.62 263.59 -

Competitive Comparison of Northrop Grumman's Intrinsic Value: Projected FCF

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.


Northrop Grumman's Price-to-Projected-FCF Distribution in the Aerospace & Defense Industry

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.


;
;

Northrop Grumman Intrinsic Value: Projected FCF Calculation

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.


Northrop Grumman Intrinsic Value: Projected FCF Related Terms

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.


Northrop Grumman Business Description

Address
2980 Fairview Park Drive, Falls Church, VA, USA, 22042
Northrop Grumman Corp is a diversified company which is aligned in four operating sectors, which also comprise our reportable segments namely Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. The aerospace segment designs and builds military aircraft, including the F-35, Global Hawk drones, and the B-21 bomber. Defense systems develops artillery, missile systems, and missile defense technologies. Mission systems focuses on radar, navigation, and communication systems, while space systems manufactures satellites, sensors, and rocket motors.
Executives
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