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DCF Valuation
Base-case fair value
$455.16
Intrinsic $606.88 · 25% MOS
Current price: $296.89
Base-case summary
Our base-case DCF for Huntington Ingalls Industries, Inc. (HII) projects 10 years of free cash flow growth at 13.0% for years 1–5 and 6.5% for years 6–10, anchored to 13.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $792M in trailing free cash flow, this produces an intrinsic value of $606.88 per share. A 25% safety margin gives a fair value of $455.16, suggesting the stock is currently 53% undervalued against the $296.89 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$792M
Cash & equivalents
$216M
Total debt
$2.9B
Shares outstanding
39M