Intrinsic value of Lockheed Martin - LMT

Previous Close

$303.39

  Intrinsic Value

$106.08

stock screener

  Rating & Target

str. sell

-65%

Previous close

$303.39

 
Intrinsic value

$106.08

 
Up/down potential

-65%

 
Rating

str. sell

We calculate the intrinsic value of LMT stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 86.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.60
  6.44
  6.30
  6.17
  6.05
  5.94
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.18
  5.16
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.08
Revenue, $m
  54,417
  57,922
  61,568
  65,365
  69,319
  73,440
  77,737
  82,218
  86,896
  91,779
  96,880
  102,210
  107,783
  113,610
  119,707
  126,086
  132,765
  139,757
  147,081
  154,752
  162,791
  171,216
  180,046
  189,304
  199,011
  209,190
  219,866
  231,063
  242,810
  255,134
Variable operating expenses, $m
  47,355
  50,311
  53,387
  56,589
  59,924
  63,399
  67,023
  70,803
  74,747
  78,866
  81,708
  86,203
  90,903
  95,818
  100,960
  106,340
  111,973
  117,870
  124,047
  130,517
  137,297
  144,402
  151,849
  159,657
  167,844
  176,429
  185,433
  194,877
  204,784
  215,177
Fixed operating expenses, $m
  1,025
  1,048
  1,071
  1,094
  1,118
  1,143
  1,168
  1,194
  1,220
  1,247
  1,274
  1,302
  1,331
  1,360
  1,390
  1,421
  1,452
  1,484
  1,517
  1,550
  1,584
  1,619
  1,655
  1,691
  1,728
  1,766
  1,805
  1,845
  1,885
  1,927
Total operating expenses, $m
  48,380
  51,359
  54,458
  57,683
  61,042
  64,542
  68,191
  71,997
  75,967
  80,113
  82,982
  87,505
  92,234
  97,178
  102,350
  107,761
  113,425
  119,354
  125,564
  132,067
  138,881
  146,021
  153,504
  161,348
  169,572
  178,195
  187,238
  196,722
  206,669
  217,104
Operating income, $m
  6,037
  6,563
  7,111
  7,682
  8,277
  8,898
  9,546
  10,222
  10,928
  11,666
  13,898
  14,705
  15,549
  16,432
  17,357
  18,325
  19,340
  20,403
  21,517
  22,686
  23,910
  25,195
  26,542
  27,956
  29,439
  30,995
  32,628
  34,342
  36,141
  38,029
EBITDA, $m
  8,309
  8,887
  9,490
  10,117
  10,771
  11,454
  12,165
  12,908
  13,684
  14,495
  15,343
  16,229
  17,156
  18,126
  19,142
  20,206
  21,320
  22,487
  23,711
  24,993
  26,338
  27,748
  29,227
  30,779
  32,406
  34,114
  35,906
  37,787
  39,762
  41,834
Interest expense (income), $m
  0
  770
  622
  778
  939
  1,108
  1,283
  1,466
  1,657
  1,856
  2,064
  2,280
  2,507
  2,743
  2,991
  3,249
  3,520
  3,803
  4,099
  4,410
  4,735
  5,075
  5,432
  5,806
  6,198
  6,609
  7,040
  7,491
  7,965
  8,462
  8,984
Earnings before tax, $m
  5,267
  5,941
  6,333
  6,743
  7,169
  7,615
  8,079
  8,565
  9,072
  9,603
  11,618
  12,198
  12,805
  13,441
  14,108
  14,806
  15,537
  16,304
  17,108
  17,951
  18,835
  19,763
  20,736
  21,758
  22,830
  23,955
  25,136
  26,377
  27,679
  29,046
Tax expense, $m
  1,422
  1,604
  1,710
  1,821
  1,936
  2,056
  2,181
  2,313
  2,449
  2,593
  3,137
  3,293
  3,457
  3,629
  3,809
  3,998
  4,195
  4,402
  4,619
  4,847
  5,085
  5,336
  5,599
  5,875
  6,164
  6,468
  6,787
  7,122
  7,473
  7,842
Net income, $m
  3,845
  4,337
  4,623
  4,922
  5,234
  5,559
  5,898
  6,252
  6,623
  7,010
  8,481
  8,905
  9,348
  9,812
  10,299
  10,808
  11,342
  11,902
  12,489
  13,104
  13,750
  14,427
  15,137
  15,883
  16,666
  17,487
  18,350
  19,255
  20,205
  21,203

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  49,696
  52,896
  56,227
  59,694
  63,305
  67,069
  70,992
  75,085
  79,357
  83,817
  88,475
  93,343
  98,432
  103,754
  109,321
  115,147
  121,246
  127,632
  134,320
  141,326
  148,668
  156,361
  164,426
  172,880
  181,745
  191,041
  200,790
  211,017
  221,744
  232,999
Adjusted assets (=assets-cash), $m
  49,696
  52,896
  56,227
  59,694
  63,305
  67,069
  70,992
  75,085
  79,357
  83,817
  88,475
  93,343
  98,432
  103,754
  109,321
  115,147
  121,246
  127,632
  134,320
  141,326
  148,668
  156,361
  164,426
  172,880
  181,745
  191,041
  200,790
  211,017
  221,744
  232,999
Revenue / Adjusted assets
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
  1.095
Average production assets, $m
  13,876
  14,770
  15,700
  16,668
  17,676
  18,727
  19,823
  20,966
  22,158
  23,404
  24,704
  26,064
  27,485
  28,971
  30,525
  32,152
  33,855
  35,638
  37,506
  39,462
  41,512
  43,660
  45,912
  48,272
  50,748
  53,343
  56,066
  58,921
  61,917
  65,059
Working capital, $m
  2,666
  2,838
  3,017
  3,203
  3,397
  3,599
  3,809
  4,029
  4,258
  4,497
  4,747
  5,008
  5,281
  5,567
  5,866
  6,178
  6,505
  6,848
  7,207
  7,583
  7,977
  8,390
  8,822
  9,276
  9,752
  10,250
  10,773
  11,322
  11,898
  12,502
Total debt, $m
  11,519
  14,400
  17,397
  20,518
  23,768
  27,155
  30,686
  34,370
  38,214
  42,228
  46,420
  50,802
  55,382
  60,171
  65,182
  70,426
  75,915
  81,662
  87,681
  93,987
  100,594
  107,518
  114,776
  122,385
  130,363
  138,730
  147,504
  156,708
  166,363
  176,492
Total liabilities, $m
  44,726
  47,607
  50,604
  53,725
  56,975
  60,362
  63,893
  67,577
  71,421
  75,435
  79,627
  84,009
  88,589
  93,378
  98,389
  103,633
  109,122
  114,869
  120,888
  127,194
  133,801
  140,725
  147,983
  155,592
  163,570
  171,937
  180,711
  189,915
  199,570
  209,699
Total equity, $m
  4,970
  5,290
  5,623
  5,969
  6,331
  6,707
  7,099
  7,509
  7,936
  8,382
  8,847
  9,334
  9,843
  10,375
  10,932
  11,515
  12,125
  12,763
  13,432
  14,133
  14,867
  15,636
  16,443
  17,288
  18,174
  19,104
  20,079
  21,102
  22,174
  23,300
Total liabilities and equity, $m
  49,696
  52,897
  56,227
  59,694
  63,306
  67,069
  70,992
  75,086
  79,357
  83,817
  88,474
  93,343
  98,432
  103,753
  109,321
  115,148
  121,247
  127,632
  134,320
  141,327
  148,668
  156,361
  164,426
  172,880
  181,744
  191,041
  200,790
  211,017
  221,744
  232,999
Debt-to-equity ratio
  2.320
  2.720
  3.090
  3.440
  3.750
  4.050
  4.320
  4.580
  4.820
  5.040
  5.250
  5.440
  5.630
  5.800
  5.960
  6.120
  6.260
  6.400
  6.530
  6.650
  6.770
  6.880
  6.980
  7.080
  7.170
  7.260
  7.350
  7.430
  7.500
  7.570
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,845
  4,337
  4,623
  4,922
  5,234
  5,559
  5,898
  6,252
  6,623
  7,010
  8,481
  8,905
  9,348
  9,812
  10,299
  10,808
  11,342
  11,902
  12,489
  13,104
  13,750
  14,427
  15,137
  15,883
  16,666
  17,487
  18,350
  19,255
  20,205
  21,203
Depreciation, amort., depletion, $m
  2,272
  2,324
  2,379
  2,435
  2,494
  2,556
  2,620
  2,686
  2,756
  2,829
  1,445
  1,524
  1,607
  1,694
  1,785
  1,880
  1,980
  2,084
  2,193
  2,308
  2,428
  2,553
  2,685
  2,823
  2,968
  3,119
  3,279
  3,446
  3,621
  3,805
Funds from operations, $m
  6,116
  6,661
  7,002
  7,357
  7,728
  8,114
  8,518
  8,939
  9,379
  9,839
  9,926
  10,429
  10,955
  11,506
  12,084
  12,688
  13,322
  13,986
  14,682
  15,412
  16,177
  16,980
  17,822
  18,706
  19,633
  20,607
  21,628
  22,701
  23,826
  25,008
Change in working capital, $m
  165
  172
  179
  186
  194
  202
  211
  220
  229
  239
  250
  261
  273
  286
  299
  313
  327
  343
  359
  376
  394
  413
  433
  454
  476
  499
  523
  549
  576
  604
Cash from operations, $m
  5,951
  6,489
  6,823
  7,171
  7,534
  7,912
  8,307
  8,719
  9,150
  9,600
  9,676
  10,168
  10,682
  11,221
  11,785
  12,376
  12,995
  13,643
  14,323
  15,036
  15,783
  16,567
  17,390
  18,252
  19,158
  20,108
  21,105
  22,152
  23,251
  24,404
Maintenance CAPEX, $m
  -762
  -811
  -864
  -918
  -975
  -1,034
  -1,095
  -1,159
  -1,226
  -1,296
  -1,369
  -1,445
  -1,524
  -1,607
  -1,694
  -1,785
  -1,880
  -1,980
  -2,084
  -2,193
  -2,308
  -2,428
  -2,553
  -2,685
  -2,823
  -2,968
  -3,119
  -3,279
  -3,446
  -3,621
New CAPEX, $m
  -849
  -894
  -930
  -968
  -1,008
  -1,051
  -1,096
  -1,143
  -1,193
  -1,245
  -1,301
  -1,359
  -1,421
  -1,486
  -1,555
  -1,627
  -1,703
  -1,783
  -1,867
  -1,956
  -2,050
  -2,148
  -2,252
  -2,361
  -2,475
  -2,596
  -2,722
  -2,855
  -2,995
  -3,142
Cash from investing activities, $m
  -1,611
  -1,705
  -1,794
  -1,886
  -1,983
  -2,085
  -2,191
  -2,302
  -2,419
  -2,541
  -2,670
  -2,804
  -2,945
  -3,093
  -3,249
  -3,412
  -3,583
  -3,763
  -3,951
  -4,149
  -4,358
  -4,576
  -4,805
  -5,046
  -5,298
  -5,564
  -5,841
  -6,134
  -6,441
  -6,763
Free cash flow, $m
  4,340
  4,784
  5,030
  5,285
  5,551
  5,828
  6,116
  6,417
  6,731
  7,059
  7,006
  7,364
  7,737
  8,128
  8,536
  8,964
  9,411
  9,880
  10,372
  10,886
  11,426
  11,991
  12,585
  13,207
  13,860
  14,545
  15,263
  16,018
  16,810
  17,641
Issuance/(repayment) of debt, $m
  -2,744
  2,880
  2,997
  3,120
  3,250
  3,387
  3,531
  3,684
  3,844
  4,014
  4,193
  4,381
  4,580
  4,790
  5,011
  5,244
  5,489
  5,747
  6,019
  6,306
  6,607
  6,924
  7,258
  7,609
  7,978
  8,366
  8,775
  9,204
  9,655
  10,129
Issuance/(repurchase) of shares, $m
  1,975
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -769
  2,880
  2,997
  3,120
  3,250
  3,387
  3,531
  3,684
  3,844
  4,014
  4,193
  4,381
  4,580
  4,790
  5,011
  5,244
  5,489
  5,747
  6,019
  6,306
  6,607
  6,924
  7,258
  7,609
  7,978
  8,366
  8,775
  9,204
  9,655
  10,129
Total cash flow (excl. dividends), $m
  3,572
  7,665
  8,027
  8,405
  8,801
  9,215
  9,648
  10,101
  10,575
  11,072
  11,199
  11,745
  12,317
  12,917
  13,547
  14,207
  14,900
  15,628
  16,391
  17,192
  18,033
  18,916
  19,843
  20,816
  21,838
  22,911
  24,038
  25,221
  26,464
  27,770
Retained Cash Flow (-), $m
  -5,820
  -320
  -333
  -347
  -361
  -376
  -392
  -409
  -427
  -446
  -466
  -487
  -509
  -532
  -557
  -583
  -610
  -639
  -669
  -701
  -734
  -769
  -806
  -845
  -886
  -930
  -975
  -1,023
  -1,073
  -1,125
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -2,248
  7,345
  7,694
  8,059
  8,440
  8,838
  9,255
  9,691
  10,148
  10,626
  10,733
  11,258
  11,808
  12,385
  12,990
  13,625
  14,290
  14,989
  15,722
  16,491
  17,299
  18,146
  19,036
  19,970
  20,951
  21,981
  23,063
  24,199
  25,392
  26,644
Discount rate, %
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
  -2,091
  6,311
  6,062
  5,776
  5,456
  5,107
  4,734
  4,343
  3,941
  3,535
  3,021
  2,645
  2,284
  1,944
  1,628
  1,341
  1,086
  862
  672
  513
  383
  279
  199
  138
  93
  61
  39
  24
  14
  8
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.

FINANCIAL RATIOS  of  Lockheed Martin (LMT)

Valuation Ratios
P/E Ratio 16.5
Price to Sales 1.9
Price to Book 58
Price to Tangible Book
Price to Cash Flow 16.9
Price to Free Cash Flow 21.3
Growth Rates
Sales Growth Rate 16.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13.2%
Cap. Spend. - 3 Yr. Gr. Rate 4.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 945.2%
Total Debt to Equity 945.2%
Interest Coverage 0
Management Effectiveness
Return On Assets 10.9%
Ret/ On Assets - 3 Yr. Avg. 9.7%
Return On Total Capital 31.1%
Ret/ On T. Cap. - 3 Yr. Avg. 30.7%
Return On Equity 230.1%
Return On Equity - 3 Yr. Avg. 142.7%
Asset Turnover 1
Profitability Ratios
Gross Margin 10.7%
Gross Margin - 3 Yr. Avg. 11.2%
EBITDA Margin 12.9%
EBITDA Margin - 3 Yr. Avg. 13.4%
Operating Margin 11.7%
Oper. Margin - 3 Yr. Avg. 12%
Pre-Tax Margin 10.3%
Pre-Tax Margin - 3 Yr. Avg. 10.9%
Net Profit Margin 11.2%
Net Profit Margin - 3 Yr. Avg. 9.7%
Effective Tax Rate 23.2%
Eff/ Tax Rate - 3 Yr. Avg. 27%
Payout Ratio 38.6%

LMT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LMT stock intrinsic value calculation we used $51048 million for the last fiscal year's total revenue generated by Lockheed Martin. The default revenue input number comes from 0001 income statement of Lockheed Martin. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our LMT stock valuation model: a) initial revenue growth rate of 6.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.5%, whose default value for LMT is calculated based on our internal credit rating of Lockheed Martin, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Lockheed Martin.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of LMT stock the variable cost ratio is equal to 87.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1003 million in the base year in the intrinsic value calculation for LMT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Lockheed Martin.

Corporate tax rate of 27% is the nominal tax rate for Lockheed Martin. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the LMT stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for LMT are equal to 25.5%.

Life of production assets of 17.1 years is the average useful life of capital assets used in Lockheed Martin operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for LMT is equal to 4.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-850 million for Lockheed Martin - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 284.781 million for Lockheed Martin is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Lockheed Martin at the current share price and the inputted number of shares is $86.4 billion.

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COMPANY NEWS

▶ Why Orlando may see more mergers after $33.5B Harris Corp., L3 alliance   [04:27PM  American City Business Journals]
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▶ [$$] Lockheed Martin Lands $23 Billion Pentagon Contract   [06:23PM  The Wall Street Journal]
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▶ The Next Boom in Defense Stocks   [Nov-08-18 03:20PM  Barrons.com]
▶ DFW units of Lockheed Martin, Boeing score big contracts   [03:15PM  American City Business Journals]
▶ Lockheed Martin files permit for 5.52-acre test facility in Orlando   [01:07PM  American City Business Journals]
▶ What the midterm results mean for government contractors   [02:25PM  American City Business Journals]
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▶ Parsons reorganizes, head of federal business named COO   [02:09PM  American City Business Journals]
▶ Lockheed's F-35 picks up $11.5B contract, bringing work to Orlando   [09:26AM  American City Business Journals]
▶ Network 200: 25 manufacturing and logistics leaders to know in DFW   [04:07AM  American City Business Journals]
▶ Trump shifts focus from trade to immigration   [Oct-30-18 01:39PM  Yahoo Finance Video]
▶ Is Lockheed Martin Corporation a Buy?   [Oct-28-18 09:34AM  Motley Fool]
▶ ULA gets $152.4M military contract to send top secret payload to orbit   [11:27AM  American City Business Journals]
▶ More F-35 work headed to Orlando as Lockheed closes $11.5B deal, expects future growth   [Oct-25-18 02:31PM  American City Business Journals]

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