Latest Ratios: P/E Ratio 23.8x · EV/EBITDA 16.2x · ROE 8.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $48.4B | $57.4B | $40.0B | $40.1B | $40.3B | $43.3B | $40.8B | $44.3B | $22.8B | $17.5B | $13.6B |
| Enterprise Value | $58.6B | $67.5B | $52.4B | $53.5B | $47.2B | $50.2B | $47.2B | $51.3B | $25.8B | $21.0B | $17.1B |
| P/E Ratio → | 23.76 | 35.70 | 26.65 | 32.70 | 37.93 | 23.48 | 36.49 | 26.92 | 24.00 | 25.05 | 24.57 |
| P/S Ratio | 2.08 | 2.62 | 1.88 | 2.07 | 2.36 | 2.43 | 2.24 | — | 3.35 | 2.84 | 2.30 |
| P/B Ratio | 2.49 | 2.92 | 2.04 | 2.13 | 2.16 | 2.24 | 1.96 | 1.95 | 6.78 | 5.85 | 4.63 |
| P/FCF | 13.30 | 21.39 | 18.60 | 24.37 | 21.14 | 18.48 | 16.85 | 57.79 | 22.26 | 28.46 | 30.13 |
| P/OCF | 15.59 | 18.47 | 15.63 | 19.15 | 18.67 | 16.13 | 14.63 | 47.14 | 19.23 | 23.31 | 23.83 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.09 | 2.46 | 2.76 | 2.77 | 2.82 | 2.60 | — | 3.79 | 3.40 | 2.90 |
| EV / EBITDA | 16.25 | 20.02 | 15.85 | 18.05 | 16.46 | 16.33 | 18.11 | 57.39 | 19.10 | 15.21 | 14.21 |
| EV / EBIT | 27.25 | 26.71 | 23.05 | 30.35 | 30.41 | 19.71 | 29.96 | — | 20.14 | 19.48 | 16.12 |
| EV / FCF | — | 25.18 | 24.34 | 32.50 | 24.76 | 21.42 | 19.50 | 66.98 | 25.18 | 34.15 | 38.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.7% | 25.7% | 25.9% | 26.3% | 28.9% | 30.2% | 29.2% | — | 34.3% | 34.1% | 34.6% |
| Operating Margin | 9.8% | 9.8% | 9.4% | 9.3% | 11.3% | 11.8% | — | — | 16.1% | 18.2% | 15.1% |
| Net Profit Margin | 7.3% | 7.3% | 7.0% | 6.3% | 6.2% | 10.4% | 6.2% | — | 14.0% | 11.3% | 9.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.2% | 8.2% | 7.8% | 6.6% | 5.6% | 9.2% | 5.1% | — | 29.9% | 23.6% | 18.1% |
| ROA | 3.9% | 3.9% | 3.6% | 3.3% | 3.1% | 5.2% | 3.0% | — | 9.5% | 7.0% | 4.9% |
| ROIC | 5.2% | 5.2% | 4.7% | 4.7% | 5.6% | 5.9% | — | — | 12.8% | 13.0% | 9.9% |
| ROCE | 6.3% | 6.3% | 5.9% | 5.9% | 6.7% | 6.7% | — | — | 13.7% | 13.8% | 9.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.57 | 0.57 | 0.66 | 0.74 | 0.42 | 0.41 | 0.37 | 0.35 | 1.05 | 1.31 | 1.38 |
| Debt / EBITDA | 3.33 | 3.33 | 3.93 | 4.70 | 2.72 | 2.55 | 2.95 | 8.80 | 2.61 | 2.84 | 3.35 |
| Net Debt / Equity | — | 0.52 | 0.63 | 0.71 | 0.37 | 0.36 | 0.31 | 0.31 | 0.89 | 1.17 | 1.21 |
| Net Debt / EBITDA | 3.02 | 3.02 | 3.74 | 4.51 | 2.41 | 2.24 | 2.46 | 7.87 | 2.22 | 2.53 | 2.95 |
| Debt / FCF | — | 3.80 | 5.75 | 8.13 | 3.62 | 2.94 | 2.65 | 9.19 | 2.92 | 5.69 | 7.88 |
| Interest Coverage | 4.24 | 4.24 | 3.37 | 3.25 | 5.56 | 9.62 | 5.84 | — | 7.66 | 6.34 | 6.17 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 1.08 | 0.99 | 1.17 | 1.40 | 1.57 | 1.57 | 1.14 | 1.22 | 1.08 |
| Quick Ratio | 1.02 | 1.02 | 0.90 | 0.80 | 0.95 | 1.18 | 1.34 | 1.27 | 0.98 | 0.68 | 0.64 |
| Cash Ratio | 0.15 | 0.15 | 0.08 | 0.07 | 0.15 | 0.21 | 0.30 | 0.21 | 0.23 | 0.24 | 0.25 |
| Asset Turnover | — | 0.53 | 0.51 | 0.47 | 0.51 | 0.51 | 0.49 | — | 0.67 | 0.63 | 0.58 |
| Inventory Turnover | 13.32 | 13.32 | 11.88 | 9.72 | 9.40 | 12.67 | 13.24 | — | 12.41 | 4.32 | 4.58 |
| Days Sales Outstanding | — | 83.30 | 80.12 | 83.19 | 91.52 | 85.32 | 81.77 | — | 78.09 | 39.41 | 40.05 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.6% | 2.2% | 2.2% | 2.1% | 1.9% | 1.8% | 0.8% | 1.4% | 1.6% | 1.9% |
| Payout Ratio | 56.2% | 56.2% | 59.0% | 70.7% | 81.4% | 44.3% | 64.8% | — | 34.2% | 38.9% | 48.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 2.8% | 3.8% | 3.1% | 2.6% | 4.3% | 2.7% | 3.7% | 4.2% | 4.0% | 4.1% |
| FCF Yield | 7.5% | 4.7% | 5.4% | 4.1% | 4.7% | 5.4% | 5.9% | 1.7% | 4.5% | 3.5% | 3.3% |
| Buyback Yield | 2.4% | 2.0% | 1.4% | 1.3% | 2.7% | 8.5% | 5.6% | 3.4% | 0.9% | 1.6% | 5.2% |
| Total Shareholder Yield | 4.2% | 3.6% | 3.6% | 3.5% | 4.8% | 10.4% | 7.4% | 4.2% | 2.3% | 3.1% | 7.2% |
| Shares Outstanding | — | $188M | $191M | $191M | $194M | $203M | $216M | $224M | $121M | $121M | $124M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LHX stock.
L3Harris Technologies, Inc.'s current P/E ratio is 23.8x. The historical average is 38.2x. This places it at the 33th percentile of its historical range.
L3Harris Technologies, Inc.'s current EV/EBITDA is 16.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
L3Harris Technologies, Inc.'s return on equity (ROE) is 8.2%. The historical average is 12.3%.
Based on historical data, L3Harris Technologies, Inc. is trading at a P/E of 23.8x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
L3Harris Technologies, Inc.'s current dividend yield is 1.84% with a payout ratio of 56.2%.
L3Harris Technologies, Inc. has 25.7% gross margin and 9.8% operating margin.
L3Harris Technologies, Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Acquisition-driven debt load
Metrics are mathematically derived from official filings.
Premium Multiples Price in Aerojet Synergies
Based on reported figures, LHX trades at 30.26x trailing earnings and 17.27x EV/EBITDA, a premium to NOC at 18.06x and GD at 23.05x that suggests investors are pricing in future integration gains.
The gap between the 30.26x trailing P/E and the 21.37x forward P/E implies consensus expects earnings to rise sharply, which the 2.88 PEG ratio tempers since growth must be substantial to justify the multiple. Relative to its own recent history, the multiple appears elevated, and the market seems to be assigning value to Aerojet Rocketdyne propulsion exposure that has not yet shown up in reported margins. Investors should monitor whether forward earnings delivery supports this premium.
Margin Recovery Remains Incomplete
As reported in financial statements, LHX's gross margin recovered to 26.6% in 2026Q3 from 24.4% in 2026Q1, while operating margin of 13.0% sits above the 2024Q3 level of 9.4%, leaving the trend uneven.
Operating margin swings between 6.7% and 13.2% across the ten quarters indicate that quarterly profitability is driven by contract timing and estimate-at-completion adjustments rather than steady structural expansion. The gap between operating margin of 13.0% and net margin of 10.4% suggests below-the-line items and interest expense absorb a meaningful share of operating earnings. Earning power is better captured by trailing averages than by any single quarter.
Returns Diluted by Goodwill-Heavy Capital Base
Based on LHX's reported figures, ROIC improved to 2.0% in 2026Q3 from 0.9% in 2025Q4, but remains far below the 12.5% ROIC of GD and 10.2% of NOC, reflecting capital tied up in acquisitions.
With goodwill of $20.0B representing roughly 46% of total assets, the denominator of invested capital is dominated by acquisition premiums, which mechanically depresses ROIC and ROE regardless of operating performance. The recent recovery from sub-1% returns is encouraging, but the level suggests Aerojet and prior mergers have not yet generated returns that justify their purchase prices. Investors should view the trend as improving but not yet compounding value at a rate that matches peers.
Debt Declining but Coverage Still Thin
According to reported quarterly figures, LHX's debt-to-equity fell from 0.70 in 2024Q2 to 0.52 in 2026Q3, while interest coverage of 7.41x improved from 3.27x, though debt-to-EBITDA of 10.44x remains elevated.
Deleveraging is real, with total debt declining from roughly $13.3B to $11.0B, yet the debt-to-EBITDA multiple near 10x indicates that earnings capacity relative to obligations remains stretched on a trailing basis. The improvement in interest coverage is the more reassuring signal, since it suggests debt service is becoming more comfortable as operating income recovers. A portion of debt maturing within twelve months warrants monitoring for refinancing terms.
Current Ratio Improving on Thin Cash Buffer
As reported in financial statements, LHX's current ratio rose to 1.20 in 2026Q3 from 1.03 in 2026Q1, but cash of $2.5B against $22.6B of total liabilities leaves a modest buffer for severe stress scenarios.
The quick ratio of 1.05 indicates current assets are not overly dependent on inventory, which is favorable for a business with long-cycle programs. However, the absolute cash level is small relative to obligations, so the position relies on continued receivable collection and steady operating cash flow. Under a sharp working capital reversal, liquidity could tighten quickly.
Goodwill and Debt Could Mask Core Performance
Based on reported figures, LHX's debt-to-EBITDA of 10.44x and goodwill of $20.0B suggest that headline ratio improvement may overstate the underlying earning power of the operating business.
Trailing EBITDA appears to be the binding constraint on leverage, so any shortfall in Aerojet integration synergies would likely hit coverage faster than the reported debt reduction helps it. The most commonly misapplied metric here is ROE, which is inflated or distorted by a shrinking equity base and acquisition accounting; ROIC on an adjusted, goodwill-inclusive basis and free cash flow after dividends offer a more reliable read on value creation.