---
title: "Is L3Harris Technologies (LHX) Pricing Reflect Recent Defense Spending Tailwinds Accurately"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286914265.md"
description: "L3Harris Technologies (LHX) stock is currently viewed as undervalued by 24.3% based on a Discounted Cash Flow analysis, with an estimated intrinsic value of $410.92 per share. The stock has returned 2.9% over the past week but declined 11.2% in the last month. Its P/E ratio of 33.47x is in line with industry averages, suggesting the stock is fairly priced. Investors are closely monitoring defense spending trends and contract awards that may impact future demand."
datetime: "2026-05-19T12:38:17.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286914265.md)
  - [en](https://longbridge.com/en/news/286914265.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286914265.md)
---

# Is L3Harris Technologies (LHX) Pricing Reflect Recent Defense Spending Tailwinds Accurately

With L3Harris Technologies on many watchlists, you might be wondering whether the current share price truly reflects what the stock is worth or if there is still room for value.

Over the last week the stock returned 2.9%, while the return over the past month declined 11.2%; year to date it is up 2.2%, with 1 year, 3 year and 5 year returns of 37.0%, 77.7% and 59.0% respectively.

Recent news around defense spending priorities, large contract awards across the sector and ongoing geopolitical tensions has kept attention on companies like L3Harris Technologies. This backdrop helps explain why investors are closely watching both the share price and any updates that could shift expectations around future demand.

Right now, L3Harris Technologies holds a valuation score of 4 out of 6. The next sections will compare how different valuation methods line up on the stock, then finish with a broader way of thinking about valuation beyond any single model.

L3Harris Technologies delivered 37.0% returns over the last year. See how this stacks up to the rest of the Aerospace & Defense industry.

### Approach 1: L3Harris Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes projected future cash flows and discounts them back to today to estimate what the business might be worth right now.

For L3Harris Technologies, the model uses a 2 Stage Free Cash Flow to Equity approach. The company’s latest twelve month free cash flow is about $2.59b. Analyst forecasts and extrapolated estimates point to projected free cash flow of $4.02b in 2030, with intermediate annual projections between 2026 and 2035 based on a mix of analyst inputs and Simply Wall St extensions of those trends.

Bringing all those projected cash flows back to today using a discount rate gives an estimated intrinsic value of $410.92 per share. Based on the model, this implies the stock is trading at a 24.3% discount to that intrinsic value, which suggests it screens as undervalued on this DCF view.

**Result: UNDERVALUED**

Our Discounted Cash Flow (DCF) analysis suggests L3Harris Technologies is undervalued by 24.3%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks.

LHX Discounted Cash Flow as at May 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for L3Harris Technologies.

### Approach 2: L3Harris Technologies Price vs Earnings

For a profitable company, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings, since it links the share price directly to the company’s current profit stream.

What counts as a “normal” or “fair” P/E ratio often reflects how quickly earnings are expected to grow and how risky those earnings are perceived to be. Higher expected growth or lower perceived risk can support a higher multiple, while slower growth or higher risk can pull it down.

L3Harris Technologies currently trades on a P/E of 33.47x. That sits close to both the Aerospace & Defense industry average of 34.21x and the peer average of 33.22x, so on simple comparisons the stock is roughly in line with its sector.

Simply Wall St’s Fair Ratio for the stock is 33.34x. This is a proprietary estimate of what the P/E might be given factors such as earnings growth, industry, profit margin, market cap and risk profile. Because it blends these elements, it can be more tailored than a basic peer or industry comparison.

Comparing the current P/E of 33.47x with the Fair Ratio of 33.34x, the gap is very small. This points to the stock being priced at about the level suggested by these fundamentals.

**Result: ABOUT RIGHT**

NYSE:LHX P/E Ratio as at May 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies.

### Upgrade Your Decision Making: Choose your L3Harris Technologies Narrative

Earlier it was mentioned that there is an even better way to think about valuation. This is where Narratives come in: a simple way for you to attach a clear story about L3Harris Technologies to the numbers you care about, such as your fair value, and your expectations for future revenue, earnings and margins. You can then link that story to a financial forecast and a fair value that you can compare with the current share price to help decide whether it looks attractive or expensive.

On Simply Wall St’s Community page, Narratives are set up as an accessible tool used by millions of investors. You can quickly see different viewpoints on L3Harris Technologies and how each view translates into a fair value that updates as new information like earnings, guidance changes or news headlines is incorporated into the underlying assumptions.

For example, one investor might build a Narrative that lines up with the most bullish analyst fair value of US$443.00, based on confidence in revenue reaching about US$27.8b and earnings of US$3.0b by 2029 at a P/E of roughly 30x. Another might lean closer to the most cautious target of US$300.00, placing more weight on risks around contracts, government budgets and execution. By setting up or following these different Narratives side by side, you can judge where your own view fits on that spectrum and what that implies when you compare fair value to today’s market price.

Do you think there's more to the story for L3Harris Technologies? Head over to our Community to see what others are saying!

NYSE:LHX 1-Year Stock Price Chart

_This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

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