L3 Harris DCF Stock Analysis. Buy or Sell?

L3 Harris DCF Stock Analysis

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L3 Harris DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.4224%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4%

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Historical Data

Revenue growth in the last 10 years (CAGR): 13.54%

Earnings growth in the last 10 years (CAGR): 16.58%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 13.82%

Future Assumptions

End of Year FCF growth: 6%

Growth until end of 2026: 8%

Growth until end of 2034: 6%

Perpetual growth: 3%

Net Debt: 11.735B

Outstanding Stock Options Present Value Assumption: $0.098B

Restricted Stock Units Present Value Assumption: $0.231B

Stock Valuation based on these assumptions: $541

Last update 05/18/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in L3 Harris (LHX) and I don’t plan to add a position in the coming days.