Northrop Fair Value
NO
The fair market value of NOC stock is 247.9 USD. Relative to the market price of 525.19 USD Northrop is overvalued by 52.8%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Northrop Valuation
Current NOC share ticker price is 525.19 USD.
The fair value level of 247.9 USD can be considered as an effective entry point for long-term investors to start investing in NOC stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 53% higher its fair value
Current price is 63% higher its minimum value
Current price is 7% higher its maximum value
Market price:
NOC stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Northrop Grumman Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
30.37
2
Median P/E over 5 years
15.39
3
Minimum P/E over 5 years
12.22
4
Earning per share (last 12 months)
16.11 USD
Maximum value
1
x
4
=
489.29 USD
Fair value
2
x
4
=
247.9 USD
Minimum value
3
x
4
=
196.82 USD
Northrop Grumman Corp price metrics
6.74
Annual return (geometric mean)
27.48
Risk (standard deviation) of returns
β
0.35
Beta (volatility compared to market)