Industrials · Aerospace & Defense · US stock · price as of 16 Oct 2026
Key indicators
Price
$519.86
52-week range
$470.06 – $767.12
Market cap
$74.0B
P/E (trailing)
16.5×
EV / EBITDA
14.2×
Free-cash-flow yield
4.9%
Dividend yield
1.8%
Revenue (last 12 months)
$42.9B
Revenue growth (3y a year)
4.7%
Operating margin
10.7%
Return on invested capital
12.8%
Net debt / EBITDA
2.1×
Fair value
Blended fair value$649.94 range $625 – $677
Versus priceFair+25% to fair value
Peer multiples
$654.17
Fundamentals-adjusted multiple
$829.04
10-year DCF (market-scaled)
$466.61
Earnings power value (floor, not blended)
$223.56
Model uncertainty
Medium
X-Ray Score
50/ 100 · High confidence · ahead of 47% of sector peers
Valuation68
Growth48
Profitability29
Financial health55
Dividends57
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Northrop Grumman is a defence and aerospace contractor that builds aircraft, space systems, missile defence and mission systems, and provides cyber and electronic warfare capabilities. Its main customer is the United States government, along with allied governments, and it earns money from long-term contracts for developing and producing systems and for maintaining them. Defence budgets and programme execution therefore shape its results.
Over the latest twelve months the company reported revenue of $42.9 billion, with growth of 4.7% a year across three years. It reports an operating margin of 10.7%, with return on invested capital of 13%. Leverage, measured as net debt to EBITDA, is 2.1 times. A dividend is paid, with a yield of 1.8%.
StocksXray gives Northrop Grumman Corp an X-Ray Score of 50 out of 100 (high confidence), ahead of 47% of the S&P 500 stocks in its sector. Its strongest lens is valuation (68) and its weakest is profitability (29).
Our fair value blend is $649.94 (range $624.79 to $677.20). At $519.86 the stock trades 20% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Northrop Grumman Corp (NOC)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$358.45
$512.65
$447.08
$455.72
$563.34
$519.86
Market cap
$57.7B
$79.8B
$68.0B
$67.1B
$81.0B
$74.0B
P/E
8.2×
16.3×
33.0×
16.1×
19.4×
16.5×
EV / revenue
1.9×
2.5×
2.0×
1.9×
2.2×
2.0×
EV / EBITDA
9.7×
18.2×
20.3×
13.8×
15.4×
14.2×
Price / free cash flow
26.8×
54.4×
32.4×
25.6×
24.5×
20.3×
Free-cash-flow yield
3.7%
1.8%
3.1%
3.9%
4.1%
4.9%
Price / book
4.5×
5.2×
4.6×
4.4×
4.9×
4.1×
Dividend yield
1.72%
1.32%
1.64%
1.77%
1.60%
1.84%
Fundamentals checklist ● 5 Good · ● 7 Average · ● 3 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−1.1%Bad
Free-cash-flow yield4.9%Average
Risk models
Altman Z score2.6×Average
Piotroski F-Score7 of 9Good
Growth
EPS growth (3y)−2.6%Bad
Free-cash-flow growth (3y)31.1%Good
Revenue growth (3y)4.7%Average
Growth consistency90%Average
Balance sheet
Current ratio1.2×Average
Net debt / EBITDA2.1×Average
Interest coverno interest costGood
Valuation
Fair value vs price1.3×Good
EBIT / EV yield5.3%Good
Profitability
Return on invested capital12.8%Average
Operating margin10.7%Bad
XStocksXray
Northrop Grumman Corp (NOC)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
35,667
36,602
39,290
41,033
41,954
42,892
Gross profit
–
–
–
–
–
–
Operating income
5,651
3,601
2,537
4,370
4,511
4,598
Net income
7,005
4,896
2,056
4,174
4,182
4,496
Diluted EPS ($)
43.54
31.47
13.53
28.34
29.08
31.43
Free cash flow
2,152
1,466
2,100
2,621
3,307
3,646
Gross margin
–
–
–
–
–
–
Operating margin
15.8%
9.8%
6.5%
10.6%
10.8%
10.7%
Net margin
19.6%
13.4%
5.2%
10.2%
10.0%
10.5%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
42,579
43,755
46,544
49,359
51,377
50,763
Cash
3,530
2,577
3,109
4,353
4,403
2,307
Total debt
12,783
12,877
13,856
16,274
15,696
15,191
Equity
12,926
15,312
14,795
15,290
16,674
17,884
Dividend per share ($)
6.16
6.76
7.34
8.05
8.99
9.40
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.