In partnership with

Trusted by millions. Actually enjoyed by them too.

Most business news feels like homework. Morning Brew feels like a cheat sheet. Quick hits on business, tech, and finance—sharp enough to make sense, snappy enough to make you smile.

Try the newsletter for free and see why it’s the go-to for over 4 million professionals every morning.

Check it out

Northrop Grumman Corporation DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.82%

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

Interest Rate Spread assumption on The Risk free rate ( For the cost of debt calculation): 2.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 5.72%

Earnings growth in the last 10 years (CAGR): 0.33%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 12.44%

Future Assumptions

End of Year FCF growth: 6%

Growth until end of 2026: 12%

Growth until end of 2034: 6%

Perpetual growth: 3.1%

Net Debt: 15.774B

Restricted Stock Units Present Value Assumption: $0.272B

Stock Valuation based on these assumptions: $822

Last update 09/11/2025

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 Northrop Grumman Corporation (NOC) and I don’t plan to add a position in the coming days.