Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

L3Harris Technologies, Inc. (LHX)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$448.68 - $1,852.62$1,153.90
Multi-Stage$225.11 - $246.07$235.40
Blended Fair Value$694.65
Current Price$297.39
Upside133.58%
DecisionBuy

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 Rate7.25%7.25%7.25%
Growth Rate5.50%6.50%7.50%
Fair Value$448.68$1,153.90$1,852.62
Upside / Downside50.87%288.01%522.96%

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 Rate7.25%7.25%7.25%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,018.901,028.551,038.21
Year 2 PV (M)1,134.641,156.251,178.06
Year 3 PV (M)1,246.321,282.101,318.55
Year 4 PV (M)1,354.051,406.131,459.69
Year 5 PV (M)1,457.931,528.351,601.47
PV of Terminal Value (M)36,295.2138,048.2939,868.45
Equity Value (M)42,507.0544,449.6646,464.43
Shares Outstanding (M)188.83188.83188.83
Fair Value$225.11$235.40$246.07
Upside / Downside-24.30%-20.84%-17.26%

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