What Is LMT Fair Value?
Lockheed Martin Corporation (LMT) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Lockheed Martin Corporation (LMT) has a composite fair value estimate of $938.74 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $636.95, suggesting the stock is undervalued by 47.4%.
Data as of October 31, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$938.74
vs. current price of $636.95(+47.4%)
How Is LMT Fair Value Calculated?
Four independent models estimate what LMT is worth. Each uses different inputs and assumptions. The composite blends them by weight.
LMT Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$1,442.81
+126.5%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$1,497.92
+135.2%Undervalued
Inputs used
LMT Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$173.62
-72.7%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$306.20
-51.9%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $636.95 is 126.5% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $6.12B | $5.84B |
| Year 2 | $6.64B | $6.04B |
| Year 3 | $7.20B | $6.24B |
| Year 4 | $7.82B | $6.46B |
| Year 5 | $8.48B | $6.68B |
| Year 6 | $9.20B | $6.90B |
| Year 7 | $9.97B | $7.14B |
| Year 8 | $10.82B | $7.38B |
| Year 9 | $11.74B | $7.64B |
| Year 10 | $12.73B | $7.90B |
| Terminal Value | $545.60B | $338.44B |
What Are LMT's Key Financial Metrics?
Earnings & Growth
Current Price
$636.95
EPS (TTM)
$28.16
Forward P/E
19.1
Profit Margin
8.2%
Cash & Balance Sheet
Free Cash Flow
5.6B
EBITDA
9.9B
Book Value
$43.75
Total Debt
20.5B
What Do Analysts Say About LMT?
Low
$498.00
Average
$652.57
High
$835.00
Upside
+2.5%
LMT Fair Value FAQ
What is the fair value of LMT?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), LMT's estimated fair value is $938.74. The stock is currently trading at $636.95, which makes it undervalued by our analysis.
How is LMT's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is LMT overvalued or undervalued?
Based on our analysis, LMT is undervalued. The current price of $636.95 is 47.4% below our estimated fair value of $938.74.
What do Wall Street analysts say about LMT?
21 analysts cover Lockheed Martin Corporation with a consensus rating of "Buy." The average price target is $652.57, ranging from $498.00 to $835.00. This implies 2.5% upside from the current price.