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Is Lockheed Martin Corporation (LMT) Stock Trading Below Fair Value?

Monday, September 20, 2021 03:18 PM | InvestorsObserver Analysts

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Is Lockheed Martin Corporation (LMT) Stock Trading Below Fair Value?

Lockheed Martin Corporation (LMT) receives a weak valuation ranking of 30 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. LMT has a better value than 30% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 30
LMT gets a 30 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LMT!

Metrics Analysis

LMT has a trailing twelve month Price to Earnings (PE) ratio of 13.4. The historical average of roughly 15 shows a average value for LMT stock as investors are paying fair share prices relative to the company's earnings. LMT's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 25.51 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. LMT has a 12 month forward PE to Growth (PEG) ratio of 3.19. Markets are overvaluing LMT in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 25.5100002's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

LMT's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. LMT's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Lockheed Martin Corporation (LMT) stock.

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