L3Harris Technologies, Inc. (LHX) Stock Valuation — PE Analysis
Aerospace & Defense · NYSE
Current Price
$307.79
PE Ratio (TTM)
33.2x
Intrinsic Value
$401.32
+23.3% margin of safety
COMPETITIVE MOAT
↑Integrated Defense Solutions
L3Harris offers a broad portfolio of mission-critical technologies, from sensors to communication systems. This integration creates a sticky ecosystem for defense customers.
↑Propulsion Expertise
Expansion of solid rocket motor facilities highlights specialized manufacturing capabilities. This niche expertise is difficult for competitors to replicate quickly.
↑Long-Term Government Contracts
The company benefits from multi-year defense contracts, providing revenue visibility and stability. These relationships are built on trust and proven performance.
INVESTMENT RISKS
↓Competition from New Entrants
Emerging players like SpaceX are disrupting the defense space, potentially impacting market share. Their agility and innovation pose a threat to legacy contractors.
↓Spin-off Uncertainty
The potential IPO of the Missile Solutions business introduces execution risk. Divesting assets can create operational complexities and impact future growth.
↓Dependence on Government Spending
L3Harris's revenue is heavily tied to defense budgets, which can fluctuate. Political shifts or budget cuts could negatively affect demand for its products.
Base case
LHX base case PE valuation
A base case PE valuation for LHX estimates a fair value of about $401.32 per share, against a current price of $307.79. The model assumes 13.1% annual earnings growth, a 33x target PE multiple, and a 10% discount rate.
Intrinsic Value
$401.32
Margin of safety
+23.3%
Expected annual return
+5.5%
Base case assumptions: 13.1% annual earnings growth, 33x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the LHX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for L3Harris Technologies, Inc. respond.
Open PE Calculator for LHXCompany Overview
L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies. This unit also offers comprehensive support for fleet management, as well as the development, modification, and routine maintenance of sensors for ISR and airborne operations. Furthermore, it develops and integrates specialized mission systems tailored for naval vessels and maritime operations, including sophisticated signals and multi-intelligence platforms, autonomous surface and undersea vehicles, and advanced power and ship control electronics. Cutting-edge electro-optical and infrared technologies are also part of its offerings. The Space and Airborne Systems segment is dedicated to providing sophisticated space payloads, advanced sensor technologies, and complete mission solutions for space-based operations. It also offers secure intelligence and robust cyber defense capabilities, specialized avionics for mission-specific applications, and state-of-the-art electronic warfare systems. The Communication Systems division delivers reliable tactical communication tools and secure, broadband mobile networked communication devices. This encompasses airborne, space, and surface data link terminals, ground stations, and portable tactical satellite communication (SATCOM) systems designed for manned aircraft, unmanned aerial vehicles (UAVs), and naval vessels. The segment also produces integrated night vision systems, mountable on helmets and weapons, along with radio systems, applications, and equipment essential for critical public safety and professional communication needs. Additionally, it supplies SATCOM terminals and integrated battlefield management networks. Finally, the Aviation Systems segment focuses on defense-oriented aviation products, training for commercial pilots, and mission-critical network solutions for effective air traffic management. Originally established in 1895 as Harris Corporation, the company adopted its current name, L3Harris Technologies, Inc., in June 2019. Its headquarters are located in Melbourne, Florida.
Financial Metrics — LHX PE Stock Valuation Data
PE Ratio (TTM)
33.2x
PEG Ratio
3.56
Earnings Yield
3.01%
ROE (TTM)
8.9%
Revenue/Share (TTM)
$120.29
Dividend Yield
1.59%
Debt/Equity
0.58x
Frequently Asked Questions
What is the PE ratio of LHX?
The trailing twelve-month PE ratio of LHX reflects how much investors pay per dollar of L3Harris Technologies, Inc.'s earnings. This metric is most useful when compared to Aerospace & Defense peers and the company's own historical range.
Is LHX overvalued based on PE ratio?
LHX's PE of 33.2x combined with a PEG ratio of 3.56 provides a growth-adjusted perspective. A PEG above 2.0 suggests LHX may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Aerospace & Defense, a DCF analysis may be more appropriate.
How do I value LHX stock using PE ratio?
To value L3Harris Technologies, Inc. using PE: (1) Compare the current PE (33.2x) against the Aerospace & Defense median to assess relative pricing, (2) check the PEG ratio (3.56) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of LHX?
LHX's PEG ratio is 3.56, calculated by dividing the PE ratio (33.2x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for LHX stock valuation?
PE ratio gives a quick relative read — how LHX is priced versus Aerospace & Defense peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See LHX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value LHX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.