LMT EV/EBITDA Analysis

LMT’s current EV/EBITDA of 15.6x means that the enterprise value (market cap plus debt minus cash) is 15.6 times the company’s earnings before interest, taxes, depreciation, and amortization — a measure of valuation relative to operating cash flow.

This multiple sits above the sector median of 13.6x, placing LMT in the 59th percentile among peers, indicating it is more expensive than most companies in its industry. The metric has been decreasing over the last eight quarters, with the most recent quarter-over-quarter change of -8.7% (from 17.0x to 15.6x); year-over-year data is not available. A high valuation that is trending downward can signal that the market is gradually repricing the stock lower, potentially reducing speculative risk but still leaving it above the sector norm. The combination of an above-median EV/EBITDA with a consistent downtrend suggests compression of the premium, which may carry both risk of further multiple contraction and opportunity if fundamentals improve. This metric supports the CAUTIOUS verdict: the elevated level relative to peers warrants caution, and the declining trend aligns with a more guarded outlook rather than a bullish one.

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