Stock Analysis on Net

Lockheed Martin Corp. (NYSE:LMT)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Lockheed Martin Corp., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net earnings 6,920 5,732 6,315 6,833 6,230
Net noncash charges 816 2,655 2,852 1,268 1,904
Changes in assets and liabilities 184 (585) 54 82 (823)
Net cash provided by operating activities 7,920 7,802 9,221 8,183 7,311
Interest payments, net of tax1 711 492 454 474 538
Capital expenditures (1,691) (1,670) (1,522) (1,766) (1,484)
Free cash flow to the firm (FCFF) 6,940 6,624 8,153 6,891 6,365

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Lockheed Martin Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Lockheed Martin Corp. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Interest Paid, Net of Tax

Lockheed Martin Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1 14.50% 14.20% 16.40% 16.40% 14.00%
Interest Paid, Net of Tax
Interest payments, before tax 832 573 543 567 625
Less: Interest payments, tax2 121 81 89 93 88
Interest payments, net of tax 711 492 454 474 538

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 2023 Calculation
Interest payments, tax = Interest payments × EITR
= 832 × 14.50% = 121


Enterprise Value to FCFF Ratio, Current

Lockheed Martin Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 142,418
Free cash flow to the firm (FCFF) 6,940
Valuation Ratio
EV/FCFF 20.52
Benchmarks
EV/FCFF, Competitors1
Boeing Co. 19.61
Caterpillar Inc. 18.08
Eaton Corp. plc 47.40
GE Aerospace 38.26
Honeywell International Inc. 33.21
RTX Corp. 29.18
EV/FCFF, Sector
Capital Goods 26.29
EV/FCFF, Industry
Industrials 27.14

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Lockheed Martin Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 122,260 130,388 113,509 100,886 135,002
Free cash flow to the firm (FCFF)2 6,940 6,624 8,153 6,891 6,365
Valuation Ratio
EV/FCFF3 17.62 19.69 13.92 14.64 21.21
Benchmarks
EV/FCFF, Competitors4
Boeing Co. 25.63 37.53
Caterpillar Inc. 16.08 23.54 20.50 23.83 16.84
Eaton Corp. plc 38.49 33.44 38.16 21.94 15.50
GE Aerospace 29.56 17.29 56.53 32.34 15.85
Honeywell International Inc. 29.13 29.82 25.22 26.49 21.13
RTX Corp. 23.86 28.45 27.29 35.26 21.94
EV/FCFF, Sector
Capital Goods 23.34 25.87 32.16 74.97 24.73
EV/FCFF, Industry
Industrials 25.67 24.88 28.41 72.49 31.28

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 122,260 ÷ 6,940 = 17.62

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Lockheed Martin Corp. EV/FCFF ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.