Northrop Grumman Corporation (NYSE: NOC) solves the toughest problems in space, aeronautics, defense and cyberspace to meet the ever evolving needs of our customers worldwide. Our 100,000 employees are Defining Possible every day using science, technology and engineering to create and deliver advanced systems, products and services.
Current Stock Price:
$661.01
Valuation Multiples
Equity & Enterprise Valuation
- Market Capitalization: $94.3 billion (shares outstanding 142.7 M)
- Enterprise Value (EV): $109.9 billion
Price / Earnings & Growth
- Trailing P/E: 23.8x — the ratio of share price to last 12 months’ earnings per share
- Forward P/E: 24.0x — based on expected future earnings
- PEG Ratio: 3.74 — price/earnings to growth, indicating valuation relative to EPS growth expectations
Enterprise Multiples (Operating Value)
- EV/Revenue: 2.66x-2.7x — value relative to annual sales
- EV/EBITDA: 15.5x-15.8x — enterprise value relative to operating cash profits
- EV/EBIT: 21.3x-21.8x — enterprise value relative to operating income
Cash Flow & Sales Multiples
- Price/Free Cash Flow: Very high (often 50x+) — reflects market price relative to free cash generation, which can be less reliable for capital-intensive firms like defense contractors
- Price/Sales: 2.2x-2.8x — equity valuation relative to revenue
- Price/Book: 5.3x-5.6x — valuation relative to net book value
Financial & Efficiency Ratios
- Current Ratio: 1.11 — liquidity measure (current assets/current liabilities)
- Quick Ratio: 0.92 — excludes inventory from current assets
- Debt/Equity: 1.09 — financial leverage relative to shareholder equity
- Debt/EBITDA: 2.5x — middle-range leverage relative to earnings
- Interest Coverage: 7.8x — ability to cover interest expense from operating income
Profitability & Returns
- Return on Equity (ROE): 26% — strong profitability relative to equity
- Return on Assets (ROA): 6.5% — asset efficiency
- Return on Invested Capital (ROIC): 13% — efficiency of capital deployment