Lockheed Martin Corp.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Cowen & Company	Cai von Rumohr	cai.von-rumohr@cowen.com
Bernstein Research	Douglas S. Harned	douglas.harned@bernstein.com
Jefferies	Howard A. Rubel	hrubel@jefferies.com
Wolfe Research	Hunter K. Keay	hkeay@wolferesearch.com
Stifel Nicolaus	Joseph W. DeNardi	denardij@stifel.com
Deutsche Bank Research	Myles Walton	myles.walton@db.com
CRT Capital Group	Peter Arment	parment@sterneageecrt.com
Drexel Hamilton	Peter Skibitski	pskibitski@drexelhamilton.com
Buckingham Research	Richard Safran	rsafran@buckresearch.com
Credit Suisse	Robert Spingarn	robert.spingarn@credit-suisse.com
RBC Capital Markets	Robert Stallard	robert.stallard@rbccm.com
Guggenheim Securities	Roman Schweizer	roman.schweizer@guggenheimpartners.com
Wells Fargo Securities	Sam J. Pearlstein	sam.pearlstein@wellsfargo.com

Return to top of page

Primary Input Data

Return to top of page

Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	3,514	3,299	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	4,162	4,126	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	125	87	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	35,071	35,264	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	10.02%	9.36%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	10,136	1,360	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	288.45%	41.22%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	18.76%	15.44%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	7.52%	6.77%
Enterprise value	EV_Market	79,578	84,315	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	78,265	78,280
Long-Run Growth	g = IR x ROIC	28.90%	3.86%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	11.72%	10.74%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	15.95%	18.69%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

Return to top of page

Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	1.73	1.78	25.65%	19.81%	21.92%	17.31%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	12.37	13.52	25.65%	19.81%	21.92%	17.31%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	22.65	25.55	25.65%	19.81%	21.92%	17.31%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	19.12	20.44	25.65%	19.81%	21.92%	17.31%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	14.72	16.61	25.65%	19.81%	21.92%	17.31%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	2.27	2.39	25.65%	19.81%	21.92%	17.31%

Return to top of page