Lockheed Martin Corp (LMT) Stock: How Does it Score on Fundamental Metrics?

InvestorsObserver gives Lockheed Martin Corp (LMT) a weak valuation score of 37 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. LMT currently holds a better value than 37% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

LMT gets a 37 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LMT!

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Metrics Analysis

LMT has a trailing twelve month Price to Earnings (PE) ratio of 16.2. 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 27.30 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 2.52. Markets are overvaluing LMT in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 27.3'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

All together these valuation metrics paint a pretty poor picture for LMT at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for LMT are worse than the average of the market resulting in a valuation score of 37. Click Here to get the full Report on Lockheed Martin Corp (LMT) stock.