Latest Ratios: P/E Ratio 35.3x · EV/EBITDA 19.2x · ROE 8.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $56.3B | $57.4B | $40.0B | $40.1B | $40.3B | $43.3B | $40.8B | $44.3B | $22.8B | $17.5B | $13.6B |
| Enterprise Value | $65.6B | $66.7B | $52.4B | $53.5B | $47.2B | $50.2B | $47.2B | $51.3B | $25.8B | $21.0B | $17.1B |
| P/E Ratio → | 35.32 | 35.70 | 26.65 | 32.70 | 37.93 | 23.48 | 36.49 | 26.92 | 24.00 | 25.05 | 24.57 |
| P/S Ratio | 2.57 | 2.62 | 1.88 | 2.07 | 2.36 | 2.43 | 2.24 | 2.39 | 3.35 | 2.83 | 2.30 |
| P/B Ratio | 2.89 | 2.92 | 2.04 | 2.13 | 2.16 | 2.24 | 1.96 | 1.95 | 6.78 | 5.85 | 4.63 |
| P/FCF | 20.98 | 21.39 | 18.60 | 24.37 | 21.14 | 18.48 | 16.85 | 57.79 | 22.26 | 28.46 | 30.13 |
| P/OCF | 18.12 | 18.47 | 15.63 | 19.15 | 18.67 | 16.13 | 14.63 | 47.14 | 19.23 | 23.31 | 23.83 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.05 | 2.46 | 2.76 | 2.77 | 2.82 | 2.60 | 2.77 | 3.79 | 3.40 | 2.90 |
| EV / EBITDA | 19.20 | 19.52 | 15.65 | 16.77 | 22.76 | 15.72 | 14.67 | 16.27 | 16.76 | 14.67 | 12.18 |
| EV / EBIT | 29.91 | 26.39 | 23.05 | 30.35 | 30.41 | 19.71 | 29.66 | 24.59 | 20.14 | 19.16 | 15.88 |
| EV / FCF | — | 24.88 | 24.34 | 32.50 | 24.76 | 21.42 | 19.50 | 66.98 | 25.18 | 34.15 | 38.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.7% | 25.7% | 22.3% | 22.8% | 28.9% | 30.2% | 29.3% | 27.4% | 34.3% | 34.8% | 34.9% |
| Operating Margin | 10.0% | 10.0% | 9.7% | 10.4% | 6.6% | 12.5% | 11.9% | 12.2% | 18.8% | 19.0% | 19.2% |
| Net Profit Margin | 7.3% | 7.3% | 7.0% | 6.3% | 6.2% | 10.4% | 6.2% | 8.9% | 14.0% | 11.3% | 9.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.2% | 8.2% | 7.8% | 6.6% | 5.6% | 9.2% | 5.1% | 12.6% | 29.9% | 23.6% | 18.1% |
| ROA | 3.9% | 3.9% | 3.6% | 3.3% | 3.1% | 5.2% | 3.0% | 6.8% | 9.5% | 7.0% | 4.9% |
| ROIC | 5.4% | 5.4% | 4.8% | 5.3% | 3.3% | 6.2% | 5.7% | 9.4% | 14.9% | 13.6% | 12.5% |
| ROCE | 6.4% | 6.4% | 6.0% | 6.6% | 3.9% | 7.1% | 6.5% | 10.7% | 16.0% | 14.4% | 12.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.53 | 0.53 | 0.66 | 0.74 | 0.42 | 0.41 | 0.37 | 0.35 | 1.05 | 1.31 | 1.38 |
| Debt / EBITDA | 3.05 | 3.05 | 3.88 | 4.37 | 3.75 | 2.45 | 2.39 | 2.49 | 2.29 | 2.74 | 2.87 |
| Net Debt / Equity | — | 0.48 | 0.63 | 0.71 | 0.37 | 0.36 | 0.31 | 0.31 | 0.89 | 1.17 | 1.21 |
| Net Debt / EBITDA | 2.74 | 2.74 | 3.69 | 4.19 | 3.33 | 2.16 | 1.99 | 2.23 | 1.95 | 2.44 | 2.53 |
| Debt / FCF | — | 3.50 | 5.75 | 8.13 | 3.62 | 2.94 | 2.65 | 9.19 | 2.92 | 5.69 | 7.88 |
| Interest Coverage | 4.24 | 4.24 | 3.37 | 3.25 | 5.56 | 9.62 | 5.90 | — | 7.66 | 6.45 | 6.26 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 1.08 | 0.99 | 1.17 | 1.40 | 1.57 | 1.57 | 1.14 | 1.22 | 1.08 |
| Quick Ratio | 1.02 | 1.02 | 0.90 | 0.80 | 0.95 | 1.18 | 1.34 | 1.27 | 0.98 | 0.68 | 0.64 |
| Cash Ratio | 0.15 | 0.15 | 0.08 | 0.07 | 0.15 | 0.21 | 0.30 | 0.21 | 0.23 | 0.24 | 0.25 |
| Asset Turnover | — | 0.53 | 0.51 | 0.47 | 0.51 | 0.51 | 0.49 | 0.48 | 0.67 | 0.63 | 0.58 |
| Inventory Turnover | 13.32 | 13.32 | 12.47 | 10.19 | 9.40 | 12.67 | 13.21 | 11.04 | 12.41 | 4.28 | 4.57 |
| Days Sales Outstanding | — | 83.30 | 80.12 | 83.19 | 91.52 | 85.32 | 81.77 | 76.38 | 78.09 | 39.32 | 40.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 1.6% | 2.2% | 2.2% | 2.1% | 1.9% | 1.8% | 0.8% | 1.4% | 1.6% | 1.9% |
| Payout Ratio | 56.2% | 56.2% | 59.0% | 70.7% | 81.4% | 44.3% | 64.8% | 20.5% | 34.2% | 38.9% | 48.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 2.8% | 3.8% | 3.1% | 2.6% | 4.3% | 2.7% | 3.7% | 4.2% | 4.0% | 4.1% |
| FCF Yield | 4.8% | 4.7% | 5.4% | 4.1% | 4.7% | 5.4% | 5.9% | 1.7% | 4.5% | 3.5% | 3.3% |
| Buyback Yield | 2.1% | 2.0% | 1.4% | 1.3% | 2.7% | 8.5% | 5.6% | 3.4% | 0.9% | 1.6% | 5.2% |
| Total Shareholder Yield | 3.6% | 3.6% | 3.6% | 3.5% | 4.8% | 10.4% | 7.4% | 4.2% | 2.3% | 3.1% | 7.2% |
| Shares Outstanding | — | $188M | $191M | $191M | $194M | $203M | $216M | $224M | $121M | $121M | $124M |
Integration and contract execution
Based on current market data, LHX trades at a forward P/E of 25.05, which suggests investors are pricing in significant earnings expansion following the Aerojet Rocketdyne integration, despite the company's historical P/E volatility and the broader aerospace sector's more conservative valuation multiples for legacy platform providers.
The current valuation premium relative to peers like Northrop Grumman suggests the market is assigning a 'bottleneck' status to LHX's propulsion and tactical communications assets. However, the PEG ratio of 3.25 warrants caution, as it implies that current growth expectations may be overly optimistic if the company fails to convert its backlog into consistent, high-margin earnings.
As reported in financial statements, the ROIC has remained suppressed, hovering near 1.9% in 2026Q1, a trend that reflects the heavy burden of goodwill and intangible assets resulting from aggressive M&A activity rather than a lack of operational efficiency within the core defense electronics business.
The persistent gap between ROIC and the company's cost of capital suggests that recent acquisitions have yet to generate the economic value-add required to justify their purchase prices. Investors should monitor whether management can improve capital efficiency by divesting non-core assets or if the current structure will continue to dilute returns on invested capital.
According to quarterly data, the cash conversion cycle has fluctuated significantly, reaching 78 days in 2025Q3 before compressing to 6 days in 2026Q1, which highlights the company's vulnerability to the timing of milestone-based payments from government customers and the inherent lumpiness of large-scale defense contract deliveries.
The extreme variance in the cash conversion cycle suggests that LHX lacks the working capital stability seen in more mature, platform-focused defense primes. This volatility complicates cash flow forecasting and may force the company to maintain higher liquidity buffers than would otherwise be necessary for a business of this scale.
Based on reported figures, the current ratio has remained near parity at 1.03 as of 2026Q1, indicating that the company maintains minimal excess liquidity to absorb operational shocks or unexpected delays in government contract funding without relying on external financing or credit facility access.
This tight liquidity position appears to be a structural consequence of the company's aggressive capital allocation toward dividends and share repurchases. In a high-rate environment, this lack of a safety margin may limit management's ability to pivot quickly if supply chain headwinds or contract cost overruns require immediate cash deployment.
The P/E ratio is frequently misapplied to LHX because it fails to account for the significant non-cash amortization of intangible assets stemming from the L3-Harris and Aerojet mergers, which artificially depresses reported earnings and obscures the company's true underlying cash-generating capacity and operational profitability.
Analysts should instead prioritize EV/EBITDA or P/FCF to better understand the company's performance, as these metrics normalize for the capital structure and non-cash charges that distort the P/E. Relying on P/E alone may lead to an incorrect assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LHX stock.
L3Harris Technologies, Inc.'s current P/E ratio is 35.3x. The historical average is 38.2x. This places it at the 70th percentile of its historical range.
L3Harris Technologies, Inc.'s current EV/EBITDA is 19.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
L3Harris Technologies, Inc.'s return on equity (ROE) is 8.2%. The historical average is 12.3%.
Based on historical data, L3Harris Technologies, Inc. is trading at a P/E of 35.3x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
L3Harris Technologies, Inc.'s current dividend yield is 1.59% with a payout ratio of 56.2%.
L3Harris Technologies, Inc. has 25.7% gross margin and 10.0% operating margin. Operating margin between 10-20% is typical for established companies.
L3Harris Technologies, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.