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L3Harris Technologies, Inc. (LHX)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$219.62 - $586.27$336.47
Multi-Stage$154.73 - $168.80$161.64
Blended Fair Value$249.05
Current Price$297.39
Upside-16.25%
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 Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$219.62$336.47$586.27
Upside / Downside-26.15%13.14%97.14%

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 Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,001.821,011.321,020.82
Year 2 PV (M)1,096.931,117.821,138.92
Year 3 PV (M)1,184.721,218.721,253.38
Year 4 PV (M)1,265.561,314.231,364.29
Year 5 PV (M)1,339.821,404.531,471.72
PV of Terminal Value (M)23,328.0224,454.7725,624.65
Equity Value (M)29,216.8630,521.4031,873.76
Shares Outstanding (M)188.83188.83188.83
Fair Value$154.73$161.64$168.80
Upside / Downside-47.97%-45.65%-43.24%

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