Intrinsic value of Northrop Grumman - NOC

Previous Close

$350.82

  Intrinsic Value

$384.99

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  Rating & Target

hold

+10%

Previous close

$350.82

 
Intrinsic value

$384.99

 
Up/down potential

+10%

 
Rating

hold

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NOC 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Northrop Grumman (NOC) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.17
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
  5.25
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
Revenue, $m
  24,508
  25,978
  27,511
  29,110
  30,777
  32,518
  34,336
  36,235
  38,220
  40,296
  42,467
  44,738
  47,116
  49,604
  52,211
  54,941
  57,801
  60,798
  63,939
  67,232
  70,685
  74,305
  78,101
  82,083
  86,260
  90,642
  95,239
  100,063
  105,124
  110,435
  116,009
Variable operating expenses, $m
 
  22,501
  23,755
  25,062
  26,427
  27,851
  29,339
  30,893
  32,517
  34,215
  35,991
  36,605
  38,550
  40,586
  42,719
  44,952
  47,293
  49,745
  52,315
  55,009
  57,834
  60,796
  63,903
  67,161
  70,578
  74,163
  77,925
  81,871
  86,013
  90,358
  94,919
Fixed operating expenses, $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 operating expenses, $m
  21,315
  22,501
  23,755
  25,062
  26,427
  27,851
  29,339
  30,893
  32,517
  34,215
  35,991
  36,605
  38,550
  40,586
  42,719
  44,952
  47,293
  49,745
  52,315
  55,009
  57,834
  60,796
  63,903
  67,161
  70,578
  74,163
  77,925
  81,871
  86,013
  90,358
  94,919
Operating income, $m
  3,193
  3,478
  3,757
  4,047
  4,350
  4,667
  4,997
  5,343
  5,703
  6,081
  6,475
  8,133
  8,566
  9,018
  9,492
  9,988
  10,508
  11,053
  11,624
  12,223
  12,850
  13,509
  14,199
  14,923
  15,682
  16,479
  17,314
  18,191
  19,112
  20,077
  21,090
EBITDA, $m
  3,649
  4,841
  5,126
  5,424
  5,735
  6,059
  6,398
  6,752
  7,122
  7,508
  7,913
  8,336
  8,779
  9,243
  9,729
  10,237
  10,770
  11,329
  11,914
  12,528
  13,171
  13,845
  14,553
  15,295
  16,073
  16,890
  17,746
  18,645
  19,588
  20,578
  21,616
Interest expense (income), $m
  0
  247
  290
  334
  381
  429
  480
  533
  588
  646
  706
  769
  835
  904
  976
  1,052
  1,132
  1,215
  1,302
  1,393
  1,489
  1,589
  1,694
  1,805
  1,921
  2,042
  2,169
  2,303
  2,443
  2,590
  2,745
Earnings before tax, $m
  2,923
  3,231
  3,467
  3,713
  3,970
  4,238
  4,517
  4,810
  5,116
  5,435
  5,770
  7,364
  7,731
  8,114
  8,515
  8,936
  9,377
  9,838
  10,322
  10,830
  11,362
  11,919
  12,504
  13,118
  13,762
  14,437
  15,145
  15,888
  16,668
  17,487
  18,346
Tax expense, $m
  723
  872
  936
  1,002
  1,072
  1,144
  1,220
  1,299
  1,381
  1,468
  1,558
  1,988
  2,087
  2,191
  2,299
  2,413
  2,532
  2,656
  2,787
  2,924
  3,068
  3,218
  3,376
  3,542
  3,716
  3,898
  4,089
  4,290
  4,500
  4,721
  4,953
Net income, $m
  2,200
  2,359
  2,531
  2,710
  2,898
  3,093
  3,298
  3,511
  3,734
  3,968
  4,212
  5,376
  5,643
  5,923
  6,216
  6,523
  6,845
  7,182
  7,535
  7,906
  8,294
  8,701
  9,128
  9,576
  10,046
  10,539
  11,056
  11,599
  12,168
  12,765
  13,392

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,541
  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
  25,614
  24,462
  25,905
  27,410
  28,981
  30,620
  32,331
  34,120
  35,989
  37,943
  39,988
  42,126
  44,365
  46,708
  49,163
  51,733
  54,426
  57,249
  60,206
  63,307
  66,558
  69,967
  73,542
  77,291
  81,224
  85,350
  89,679
  94,221
  98,987
  103,988
  109,236
Adjusted assets (=assets-cash), $m
  23,073
  24,462
  25,905
  27,410
  28,981
  30,620
  32,331
  34,120
  35,989
  37,943
  39,988
  42,126
  44,365
  46,708
  49,163
  51,733
  54,426
  57,249
  60,206
  63,307
  66,558
  69,967
  73,542
  77,291
  81,224
  85,350
  89,679
  94,221
  98,987
  103,988
  109,236
Revenue / Adjusted assets
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
  1.062
Average production assets, $m
  3,326
  3,533
  3,742
  3,959
  4,186
  4,422
  4,670
  4,928
  5,198
  5,480
  5,775
  6,084
  6,408
  6,746
  7,101
  7,472
  7,861
  8,269
  8,696
  9,144
  9,613
  10,105
  10,622
  11,163
  11,731
  12,327
  12,953
  13,609
  14,297
  15,019
  15,777
Working capital, $m
  1,226
  -1,403
  -1,486
  -1,572
  -1,662
  -1,756
  -1,854
  -1,957
  -2,064
  -2,176
  -2,293
  -2,416
  -2,544
  -2,679
  -2,819
  -2,967
  -3,121
  -3,283
  -3,453
  -3,631
  -3,817
  -4,012
  -4,217
  -4,432
  -4,658
  -4,895
  -5,143
  -5,403
  -5,677
  -5,964
  -6,264
Total debt, $m
  7,058
  8,278
  9,551
  10,879
  12,264
  13,710
  15,219
  16,797
  18,445
  20,169
  21,972
  23,858
  25,833
  27,900
  30,064
  32,332
  34,707
  37,196
  39,805
  42,540
  45,407
  48,414
  51,567
  54,874
  58,343
  61,982
  65,800
  69,806
  74,009
  78,420
  83,049
Total liabilities, $m
  20,355
  21,575
  22,848
  24,176
  25,561
  27,007
  28,516
  30,094
  31,742
  33,466
  35,269
  37,155
  39,130
  41,197
  43,361
  45,629
  48,004
  50,493
  53,102
  55,837
  58,704
  61,711
  64,864
  68,171
  71,640
  75,279
  79,097
  83,103
  87,306
  91,717
  96,346
Total equity, $m
  5,259
  2,886
  3,057
  3,234
  3,420
  3,613
  3,815
  4,026
  4,247
  4,477
  4,719
  4,971
  5,235
  5,512
  5,801
  6,105
  6,422
  6,755
  7,104
  7,470
  7,854
  8,256
  8,678
  9,120
  9,584
  10,071
  10,582
  11,118
  11,680
  12,271
  12,890
Total liabilities and equity, $m
  25,614
  24,461
  25,905
  27,410
  28,981
  30,620
  32,331
  34,120
  35,989
  37,943
  39,988
  42,126
  44,365
  46,709
  49,162
  51,734
  54,426
  57,248
  60,206
  63,307
  66,558
  69,967
  73,542
  77,291
  81,224
  85,350
  89,679
  94,221
  98,986
  103,988
  109,236
Debt-to-equity ratio
  1.342
  2.870
  3.120
  3.360
  3.590
  3.790
  3.990
  4.170
  4.340
  4.500
  4.660
  4.800
  4.930
  5.060
  5.180
  5.300
  5.400
  5.510
  5.600
  5.690
  5.780
  5.860
  5.940
  6.020
  6.090
  6.150
  6.220
  6.280
  6.340
  6.390
  6.440
Adjusted equity ratio
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,200
  2,359
  2,531
  2,710
  2,898
  3,093
  3,298
  3,511
  3,734
  3,968
  4,212
  5,376
  5,643
  5,923
  6,216
  6,523
  6,845
  7,182
  7,535
  7,906
  8,294
  8,701
  9,128
  9,576
  10,046
  10,539
  11,056
  11,599
  12,168
  12,765
  13,392
Depreciation, amort., depletion, $m
  456
  1,363
  1,370
  1,377
  1,385
  1,392
  1,401
  1,409
  1,418
  1,428
  1,438
  203
  214
  225
  237
  249
  262
  276
  290
  305
  320
  337
  354
  372
  391
  411
  432
  454
  477
  501
  526
Funds from operations, $m
  2,841
  3,721
  3,900
  4,087
  4,282
  4,486
  4,698
  4,920
  5,153
  5,395
  5,649
  5,579
  5,857
  6,148
  6,453
  6,772
  7,107
  7,458
  7,825
  8,210
  8,614
  9,038
  9,482
  9,948
  10,437
  10,950
  11,488
  12,052
  12,644
  13,266
  13,918
Change in working capital, $m
  28
  -79
  -83
  -86
  -90
  -94
  -98
  -103
  -107
  -112
  -117
  -123
  -128
  -134
  -141
  -147
  -154
  -162
  -170
  -178
  -186
  -195
  -205
  -215
  -226
  -237
  -248
  -260
  -273
  -287
  -301
Cash from operations, $m
  2,813
  3,801
  3,983
  4,174
  4,372
  4,580
  4,797
  5,023
  5,260
  5,507
  5,767
  5,701
  5,985
  6,282
  6,594
  6,920
  7,261
  7,619
  7,995
  8,388
  8,801
  9,233
  9,687
  10,163
  10,662
  11,186
  11,736
  12,313
  12,918
  13,553
  14,219
Maintenance CAPEX, $m
  0
  -111
  -118
  -125
  -132
  -140
  -147
  -156
  -164
  -173
  -183
  -193
  -203
  -214
  -225
  -237
  -249
  -262
  -276
  -290
  -305
  -320
  -337
  -354
  -372
  -391
  -411
  -432
  -454
  -477
  -501
New CAPEX, $m
  -920
  -207
  -208
  -217
  -227
  -237
  -247
  -258
  -270
  -282
  -295
  -309
  -323
  -338
  -354
  -371
  -389
  -408
  -427
  -448
  -470
  -492
  -516
  -542
  -568
  -596
  -625
  -656
  -688
  -722
  -758
Cash from investing activities, $m
  -805
  -318
  -326
  -342
  -359
  -377
  -394
  -414
  -434
  -455
  -478
  -502
  -526
  -552
  -579
  -608
  -638
  -670
  -703
  -738
  -775
  -812
  -853
  -896
  -940
  -987
  -1,036
  -1,088
  -1,142
  -1,199
  -1,259
Free cash flow, $m
  2,008
  3,483
  3,657
  3,832
  4,014
  4,204
  4,402
  4,609
  4,826
  5,052
  5,289
  5,200
  5,459
  5,730
  6,014
  6,312
  6,623
  6,950
  7,292
  7,651
  8,026
  8,421
  8,834
  9,268
  9,722
  10,199
  10,700
  11,225
  11,776
  12,354
  12,961
Issuance/(repayment) of debt, $m
  563
  1,220
  1,273
  1,327
  1,385
  1,446
  1,510
  1,577
  1,649
  1,724
  1,803
  1,886
  1,974
  2,067
  2,165
  2,267
  2,375
  2,489
  2,609
  2,735
  2,867
  3,007
  3,153
  3,307
  3,469
  3,639
  3,818
  4,006
  4,203
  4,411
  4,629
Issuance/(repurchase) of shares, $m
  -1,547
  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 from financing (excl. dividends), $m  
  -1,146
  1,220
  1,273
  1,327
  1,385
  1,446
  1,510
  1,577
  1,649
  1,724
  1,803
  1,886
  1,974
  2,067
  2,165
  2,267
  2,375
  2,489
  2,609
  2,735
  2,867
  3,007
  3,153
  3,307
  3,469
  3,639
  3,818
  4,006
  4,203
  4,411
  4,629
Total cash flow (excl. dividends), $m
  862
  4,703
  4,930
  5,159
  5,399
  5,649
  5,912
  6,186
  6,474
  6,776
  7,092
  7,086
  7,434
  7,797
  8,179
  8,579
  8,999
  9,439
  9,901
  10,385
  10,894
  11,427
  11,987
  12,575
  13,191
  13,838
  14,518
  15,231
  15,979
  16,765
  17,590
Retained Cash Flow (-), $m
  263
  -168
  -170
  -178
  -185
  -193
  -202
  -211
  -221
  -231
  -241
  -252
  -264
  -277
  -290
  -303
  -318
  -333
  -349
  -366
  -384
  -402
  -422
  -442
  -464
  -487
  -511
  -536
  -562
  -590
  -619
Prev. year cash balance distribution, $m
 
  2,541
  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
 
  7,076
  4,760
  4,981
  5,213
  5,456
  5,710
  5,975
  6,254
  6,545
  6,850
  6,834
  7,169
  7,521
  7,889
  8,276
  8,681
  9,106
  9,552
  10,019
  10,510
  11,025
  11,565
  12,132
  12,727
  13,352
  14,007
  14,695
  15,417
  16,175
  16,970
Discount rate, %
 
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
 
  6,758
  4,323
  4,281
  4,218
  4,133
  4,025
  3,897
  3,747
  3,577
  3,389
  3,036
  2,835
  2,623
  2,403
  2,179
  1,953
  1,731
  1,515
  1,308
  1,114
  934
  772
  627
  500
  392
  301
  227
  167
  120
  84
Current shareholders' claim on cash, %
  100
  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
  100.0

Northrop Grumman Corporation is a global security company. The Company provides products, systems and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR); strike, and logistics and modernization. The Company's segments include Aerospace Systems, Mission Systems and Technology Services. The Company's Aerospace Systems segment is engaged in the design, development, integration and production of manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics and other systems/subsystems. The Mission Systems segment offers mission solutions and multifunction systems for Department of Defense (DoD), intelligence community, international, federal civil and commercial customers. The Technology Services segment provides logistics solutions supporting the full life cycle of platforms and systems for global defense and federal-civil customers.

FINANCIAL RATIOS  of  Northrop Grumman (NOC)

Valuation Ratios
P/E Ratio 27.9
Price to Sales 2.5
Price to Book 11.7
Price to Tangible Book
Price to Cash Flow 21.8
Price to Free Cash Flow 32.4
Growth Rates
Sales Growth Rate 4.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 95.3%
Cap. Spend. - 3 Yr. Gr. Rate 20.4%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 134.2%
Total Debt to Equity 134.2%
Interest Coverage 0
Management Effectiveness
Return On Assets 8.8%
Ret/ On Assets - 3 Yr. Avg. 8.1%
Return On Total Capital 18.2%
Ret/ On T. Cap. - 3 Yr. Avg. 16%
Return On Equity 40.8%
Return On Equity - 3 Yr. Avg. 31.7%
Asset Turnover 1
Profitability Ratios
Gross Margin 23.6%
Gross Margin - 3 Yr. Avg. 23.6%
EBITDA Margin 13.8%
EBITDA Margin - 3 Yr. Avg. 13.9%
Operating Margin 13%
Oper. Margin - 3 Yr. Avg. 13.1%
Pre-Tax Margin 11.9%
Pre-Tax Margin - 3 Yr. Avg. 12%
Net Profit Margin 9%
Net Profit Margin - 3 Yr. Avg. 8.7%
Effective Tax Rate 24.7%
Eff/ Tax Rate - 3 Yr. Avg. 27.7%
Payout Ratio 29.1%

NOC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NOC stock intrinsic value calculation we used $24508 million for the last fiscal year's total revenue generated by Northrop Grumman. The default revenue input number comes from 2016 income statement of Northrop Grumman. 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 NOC stock valuation model: a) initial revenue growth rate of 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 4.7%, whose default value for NOC is calculated based on our internal credit rating of Northrop Grumman, 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 Northrop Grumman.
    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 NOC stock the variable cost ratio is equal to 86.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NOC 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 3.5% for Northrop Grumman.

Corporate tax rate of 27% is the nominal tax rate for Northrop Grumman. 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 NOC 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 NOC are equal to 13.6%.

Life of production assets of 34.6 years is the average useful life of capital assets used in Northrop Grumman 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 NOC is equal to -5.4%. 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 - $5259 million for Northrop Grumman - 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 174.872 million for Northrop Grumman 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 Northrop Grumman at the current share price and the inputted number of shares is $61.3 billion.

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Financial statements of NOC
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