What is L3Harris Technologies, Inc. (LHX) DCF Fair Value and Intrinsic Value in 2026?

L3Harris Technologies, Inc. (LHX) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is L3Harris Technologies, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

L3Harris Technologies, Inc. operates in the Industrials sector (Aerospace & Defense) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is L3Harris Technologies, Inc.'s financial health rating and Piotroski F-Score?

L3Harris Technologies, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor L3Harris Technologies, Inc. (LHX) for quarterly SEC filing thesis breaks?

LocalAlpha audits L3Harris Technologies, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksLHX

LHX

L3Harris Technologies, Inc.Industrials / Aerospace & DefenseINTACT

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. It operates through three segments: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL). The SMS segment integrates satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs. Its MSL segment unites propulsion, hypersonic, and other advanced missile technologies. The CSD segment provides tactical radios, software, waveforms, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; broadband communications; integrated vision solutions, such as helmet-mounted integrated night vision goggles with image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios and system applications and equipment. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.

Share Price

$245.60

52W: $244.83 - $379.23

DCF Fair Value

$141.68

-73.3% Premium

Thesis Hub

P/E (TTM)

24.8x

ROIC

Operating Margin

9.7%

FCF Yield

3.8%

Debt / Equity

0.35x

Piotroski Score

8/9

Altman Z-Score

3.25

Market Cap

$45.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($141.68)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$141.68

MOS Buy Target (-25%)

$106.26

Valuation Overlays: DCF Fair Value ($141.68) 25% MOS Buy Target ($106.26) Revised Graham ($149.89) Graham Number ($151.39)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$245.60

DCF Fair Value

$141.72

-73.3% Premium

Starting Free Cash Flow ($M)$1,753M

$100M$1,753M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$6,900M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$14.4B

PV of Terminal Value

$18.8B

Implied Enterprise Value

$33.3B

Implied Equity Value

$26.4B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,846	$1,944	$2,047	$2,155	$2,269	$2,372	$2,478	$2,590	$2,706	$2,828
Present Value (PV)	$1,693	$1,636	$1,580	$1,527	$1,475	$1,414	$1,356	$1,300	$1,246	$1,195

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-62.2% Premium

$151.38

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $9.91BVPS: $102.78

Revised Graham Formula-63.9% Premium

$149.89

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3.6% Yield

$8.95 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.7BYield: 3.6%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

9.1% CAGR (Next 10 Yrs)

At the current price of $245.60, the market is assuming the business will compound Free Cash Flow at 9.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil LHX with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for L3Harris Technologies, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 9.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Track LHX & Set Alerts Browse S&P 500 Coverage

Frequently Asked Questions: L3Harris Technologies, Inc. (LHX) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for L3Harris Technologies, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, L3Harris Technologies, Inc. has an estimated DCF intrinsic fair value of $141.68 per share compared to its current market price of $245.60. This represents an estimated 73.3% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $151.39.