LMT · Intrinsic value
Is Lockheed Martin Corporation (LMT) overvalued or undervalued?
Lockheed Martin Corporation (LMT) trades at the delayed market price of $552.09 a share. That price already implies revenue growth of 10.4% a year for 5 years. TickerWorth's fair value is $486.55 a share (priced within our range of $438.18 – $574.57). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is LMT fairly valued?
- Fair value
- $486.55
- Market price
- $552.09
- Downside to fair value
- 11.9%
- Verdict
- Priced within our range of $438.18 – $574.57
Reverse DCF: Today's price implies revenue growth of 10.4% a year for 5 years; our model assumes 5.8% a year on average over the same horizon.
What is LMT's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Industrials companies in US
Its strongest point: looks cheap on the numbers. Its weakest: balance sheet looks stretched.
- Value · 58 of 100
Cheaper than 58% of Industrials companies in US
- Price vs worth · 40 of 100
- Quality · 48 of 100
More profitable than 48% of Industrials companies in US
- Financial health · 36 of 100
Financially stronger than 36% of Industrials companies in US
- Growth · 56 of 100
Growing faster than 56% of Industrials companies in US
- Momentum · 56 of 100
Outperformed 56% of Industrials companies in US over the past year
Confidence: High confidence · Scored
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LMT DCF valuation, input by input
TickerWorth's fair value for Lockheed Martin Corporation (LMT) is $486.55 a share, against the delayed market price of $552.09 (priced within our range of $438.18 – $574.57). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values LMT at about $438.18 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Lockheed Martin Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 9.2%, with a long-run terminal growth rate of 2.5%. About 75% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 10.4% annual revenue growth for LMT. Our base case instead compounds to about 5.8% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, LMT's modeled DCF value ranges from about $307.67 to $721.97 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Lockheed Martin Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of LMT's intrinsic value. Figures update as new filings and prices come in.
Every input behind LMT's DCF
| Input | Value |
|---|---|
| Base-year revenueLOCKHEED MARTIN CORPORATION FY2025 10-K (accession 0001628280-26-004195): us-gaap:Revenues, FY2025 full year. | $75,048,000,000 |
| Base EBIT marginLOCKHEED MARTIN CORPORATION FY2025 10-K (accession 0001628280-26-004195): us-gaap:OperatingIncomeLoss 7,731,000,000 / revenue 75,048,000,000 = 10.30%, FY2025. | 10.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 8% → 7% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.00 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLOCKHEED MARTIN CORPORATION FY2025 10-K (accession 0001628280-26-004195): WeightedAverageNumberOfDilutedSharesOutstanding = 233,500,000 shares, FY2025. | 234M |
| Market priceDelayed quote · as of 2026-10-19 13:54 UTC | $552.09 |
Change LMT's assumptions
The discount-rate dial and the editable model
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What does Lockheed Martin Corporation do?
What does it do?
Lockheed Martin Corporation, an aerospace and defense company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services in the United States, Europe, Asia, the Middle East, and internationally. The company operates through four segments: Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space. It operates in the Aerospace & Defense industry (Industrials sector), headquartered in United States. The company employs roughly 123,000 people.
How does it make money?
The business turns $77.0B in annual revenue into profit. Out of every $100 of sales, about $12 is left as operating profit (operating margin of 12.0%), after a 12% gross margin on the products/services it sells. After all costs, taxes and interest, 8.2% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (2.3× equity), can just cover its short-term bills (1.2× current ratio), and is currently profitable.
LMT insider trading
We have no recent SEC Form 4 insider filings on file for Lockheed Martin Corporation. Form 4 covers US-listed companies only.
Common questions
What is LMT's intrinsic value?
TickerWorth's blended fair value for Lockheed Martin Corporation (LMT) is $486.55 per share, versus a market price of $552.09 (priced within our range of $438.18 – $574.57).
Is LMT overvalued or undervalued?
Priced within our range of $438.18 – $574.57 at $552.09. We don't call LMT overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for LMT?
A WACC of 9.2% and a terminal growth rate of 2.5%.
Is Lockheed Martin stock undervalued?
TickerWorth's fair value for Lockheed Martin Corporation (LMT) is $486.55 against a market price of $552.09. Our read: Priced within our range of $438.18 – $574.57. This is a model estimate, not investment advice.
Lockheed Martin (LMT) DCF valuation and fair value
Our fair value for Lockheed Martin Corporation (LMT) is $486.55, built on a 9.2% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Lockheed Martin stock?
Today's price implies revenue growth of 10.4% a year for 5 years; our model assumes 5.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $552.09. A model estimate, not investment advice.
Lockheed Martin (LMT) insider trading
We have no recent SEC Form 4 insider filings on file for Lockheed Martin Corporation (LMT). Form 4 covers US-listed companies only.
How does LMT compare with its peers?
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.