Leidos Holdings DCF Stock Analysis. Buy or Sell?

Leidos Holdings DCF Stock Analysis.

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Leidos Holdings DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.1383%

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): 3.5%

24 Months Beta: 0.78

Historical Data

Revenue growth in the last 10 years (CAGR): 12.56%

Earnings growth in the last 10 years (CAGR): 16.86%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 10.07%

Future Assumptions

End of Year FCF growth: 4.5%

Growth until end of 2026: 9%

Growth until end of 2034: 5%

Perpetual growth: 3.1%

Net Debt: 4.861B

Outstanding Stock Options Present Value Assumption: $0.097B

Restricted Stock Units Present Value Assumption: $0.236B

Stock Valuation based on these assumptions: $271.9

Last update 06/02/2025

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 Leidos Holdings (LDOS) and I don’t plan to add a position in the coming days.