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L3Harris Technologies, Inc. (LHX)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$218.52 - $579.67$334.14
Multi-Stage$154.25 - $168.27$161.13
Blended Fair Value$247.64
Current Price$297.39
Upside-16.73%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202320222021202120192019201820172016
DPS21.33%16.17%4.694.604.584.333.841.781.721.441.391.33
YoY Growth--2.07%0.46%5.75%12.69%115.13%3.69%19.49%3.82%3.97%27.27%
Dividend Yield--2.26%2.16%2.33%1.71%1.89%1.00%0.82%0.85%1.05%1.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,759.00
(-) Cash Dividends Paid (M)899.00
(=) Cash Retained (M)860.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)351.80219.88131.93
Cash Retained (M)860.00860.00860.00
(-) Cash Required (M)-351.80-219.88-131.93
(=) Excess Retained (M)508.20640.13728.08
(/) Shares Outstanding (M)188.83188.83188.83
(=) Excess Retained per Share2.693.393.86
LTM Dividend per Share4.764.764.76
(+) Excess Retained per Share2.693.393.86
(=) Adjusted Dividend7.458.158.62
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$218.52$334.14$579.67
Upside / Downside-26.52%12.36%94.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,759.001,873.341,995.102,124.782,262.892,409.982,482.28
Payout Ratio51.11%58.89%66.67%74.44%82.22%90.00%92.50%
Projected Dividends (M)899.001,103.151,330.041,581.761,860.592,168.982,296.11

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,001.661,011.151,020.65
Year 2 PV (M)1,096.571,117.461,138.54
Year 3 PV (M)1,184.131,218.121,252.76
Year 4 PV (M)1,264.721,313.361,363.39
Year 5 PV (M)1,338.711,403.371,470.51
PV of Terminal Value (M)23,239.9824,362.4825,527.94
Equity Value (M)29,125.7730,425.9431,773.78
Shares Outstanding (M)188.83188.83188.83
Fair Value$154.25$161.13$168.27
Upside / Downside-48.13%-45.82%-43.42%

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