Raytheon Company develops integrated products, services, and solutions in the areas of sensing; effects; command, control, communications, and intelligence; mission support; and cyber and information security worldwide. It operates in four segments: Integrated Defense Systems (IDS); Intelligence, Information, and Services (IIS); Missile Systems (MS); and Space and Airborne Systems (SAS). The company was founded in 1922 and is based in Waltham, Massachusetts.
RTN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Raytheon Co. To summarize, we found that Raytheon Co ranked in the 46th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Raytheon Co ended up being:
As a business, RTN is generating more cash flow than 96.67% of positive cash flow stocks in the Industrials.
The business' balance sheet suggests that 13% of the company's capital is sourced from debt; this is greater than only 24.24% of the free cash flow producing stocks we're observing.
RTN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 43.51% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Raytheon Co? See CSWI, MRCY, EME, GTMAY, and HUBB.