Kratos Defense & Security SolutionsLTS:0JS0 -5.56%71 Cyclically Adjusted PB Ratio is 6.23 as of Jul. 08, 2026, which is 124% above its 10-year median of 2.78. GuruFocus rates LTS:0JS0 with a GF Score™ of 71/100 and a GF Value™ of $28.63 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 214 Aerospace & Defense companies, Kratos Defense & Security Solutions ranks worse than 65.42% on this metric.
The historical rank and industry rank for Kratos Defense & Security Solutions's Cyclically Adjusted PB Ratio or its related term are showing as below:
LTS:0JS0'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.38 Med: 2.78 Max: 16.82
Current: 6.11
During the past years, Kratos Defense & Security Solutions's highest Cyclically Adjusted PB Ratio was 16.82. The lowest was 0.38. And the median was 2.78.
LTS:0JS0's Cyclically Adjusted PB Ratio is ranked worse than 65.42% of 214
companies
in the Aerospace & Defense industry
Industry Median: 3.985
vs LTS:0JS0: 6.11
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Kratos Defense & Security Solutions's adjusted book value per share data for the three months ended in Mar. 2026 was $18.197. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $8.17 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Kratos Defense & Security Solutions Cyclically Adjusted PB Ratio Related Terms
Kratos Defense & Security Solutions Cyclically Adjusted PB Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kratos Defense & Security Solutions Cyclically Adjusted PB Ratio Chart
LTS:0JS0 vs SARO, PL, LOAR: Cyclically Adjusted PB Ratio Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kratos Defense & Security Solutions Cyclically Adjusted PB Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions's Cyclically Adjusted PB Ratio falls into.
Kratos Defense & Security Solutions Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 6.23 mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Cyclically Adjusted PB Ratio of 6.23 as of Jul. 08, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Kratos Defense & Security Solutions and its competitors. This is 124% above median its historical median of 2.78. Over the past decade, Kratos Defense & Security Solutions' Cyclically Adjusted PB Ratio has ranged from 0.38 to 16.82. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #140 out of 214 companies in the Aerospace & Defense industry, placing it in the top 65.4%.
Is Kratos Defense & Security Solutions' Cyclically Adjusted PB Ratio too high?
Kratos Defense & Security Solutions' current Cyclically Adjusted PB Ratio of 6.23 is 124% above median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 16.82. The Aerospace & Defense industry median Cyclically Adjusted PB Ratio is 3.99. Kratos Defense & Security Solutions' value of 6.23 is 56.3% above this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #140 out of 214 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Cyclically Adjusted PB Ratio compare to SARO and PL?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #140 out of 214 companies for Cyclically Adjusted PB Ratio. This places Kratos Defense & Security Solutions in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 3.99. Kratos Defense & Security Solutions' value of 6.23 is 56.3% above this benchmark. Historically, Kratos Defense & Security Solutions' own Cyclically Adjusted PB Ratio has ranged from 0.38 to 16.82 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 3.99, Kratos Defense & Security Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for an Aerospace & Defense company?
The median Cyclically Adjusted PB Ratio among Aerospace & Defense companies is 3.99, based on 214 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current Cyclically Adjusted PB Ratio of 6.23 is 56.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median Cyclically Adjusted PB Ratio is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Cyclically Adjusted PB Ratio is 6.23, which is 124% above median its own 10-year median of 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kratos Defense & Security Solutions stock overvalued right now?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions (LTS:0JS0) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.63, compared to a current price of $50.92 — trading 77.9% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 6.23, which is 124% above median its 10-year median of 2.78 and 56.3% above the Aerospace & Defense industry median of 3.99. Kratos Defense & Security Solutions' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Cyclically Adjusted PB Ratio is 6.23 as of Jul. 08, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kratos Defense & Security Solutions (LTS:0JS0) Overvalued in 2026?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions stock appears to be overvalued.
The current stock price of $50.92 is trading 77.9% above its estimated GF Value™ of $28.63.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
Cyclically Adjusted PB Ratio: 6.23 (124% above median its 10-year median of 2.78)
GF Value™: $28.63 vs. price of $50.92 (77.9% above fair value)
Industry Position: 56.3% above the Aerospace & Defense median (#140 of 214)
No single metric tells the full story. See the LTS:0JS0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kratos Defense & Security Solutions Business Description
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.
71GF Score
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