Using the industry peer median P/E multiple (trailing + forward), Northrop Grumman Corporation (NOC) has a fair value of $768.89 based on 10 comparable companies in the Aerospace & Defense industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Northrop Grumman CorporationNOC | 99,805 | 23.9x | 24.8x |
| Lockheed Martin CorporationLMT | 145,078 | 29.2x | 20.9x |
| General Dynamics CorporationGD | 96,280 | 23.0x | 21.8x |
| Howmet Aerospace Inc.HWM | 93,360 | 62.5x | 50.4x |
| Waste Management, Inc.WM | 91,436 | 33.8x | 27.6x |
| United Parcel Service, Inc.UPS | 82,750 | 14.8x | 13.8x |
| 3M CompanyMMM | 76,424 | 24.2x | 16.7x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| Emerson Electric Co.EMR | 71,660 | 31.5x | 21.2x |
| L3Harris Technologies, Inc.LHX | 65,431 | 41.0x | 30.2x |
| TransDigm Group IncorporatedTDG | 65,151 | 36.0x | 29.7x |
| Industry Median | 30.4x | 23.4x | |
| (*) Profit after tax | 4,182 | 4,026 | |
| Equity Value | 126,964 | 94,168 | |
| (/) Outstanding shares | 144 | 144 | |
| Fair Price | $883 | $655 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.