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Huntington Ingalls Industries (Huntington Ingalls Industries) Intrinsic Value: Projected FCF

: $244.55 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-18), Huntington Ingalls Industries's Intrinsic Value: Projected FCF is $244.55. The stock price of Huntington Ingalls Industries is $268.84. Therefore, Huntington Ingalls Industries's Price-to-Intrinsic-Value-Projected-FCF of today is 1.1.

The historical rank and industry rank for Huntington Ingalls Industries's Intrinsic Value: Projected FCF or its related term are showing as below:

HII' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.78   Med: 1.1   Max: 1.67
Current: 1.1

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Huntington Ingalls Industries was 1.67. The lowest was 0.78. And the median was 1.10.

HII's Price-to-Projected-FCF is ranked better than
72.29% of 166 companies
in the Aerospace & Defense industry
Industry Median: 1.815 vs HII: 1.10

Huntington Ingalls Industries Intrinsic Value: Projected FCF Historical Data

The historical data trend for Huntington Ingalls Industries's Intrinsic Value: Projected FCF can be seen below:

* 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.

* Premium members only.

Huntington Ingalls Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 185.46 219.58 215.79 215.47 244.55

Huntington Ingalls Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 215.47 206.82 203.24 210.12 244.55

Competitive Comparison

For the Aerospace & Defense subindustry, Huntington Ingalls Industries's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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.


Huntington Ingalls Industries Price-to-Projected-FCF Distribution

For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Huntington Ingalls Industries's Price-to-Projected-FCF falls into.



Huntington Ingalls Industries Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Huntington Ingalls Industries's Free Cash Flow(6 year avg) = $548.16.

Huntington Ingalls Industries's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(11.693231243548*548.16+4093*0.8)/39.600
=244.55

* 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.


Huntington Ingalls Industries  (NYSE:HII) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Huntington Ingalls Industries's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=268.84/244.54953632483
=1.10

* 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.


Huntington Ingalls Industries Intrinsic Value: Projected FCF Related Terms

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Huntington Ingalls Industries (Huntington Ingalls Industries) Business Description

Traded in Other Exchanges
Address
4101 Washington Avenue, Newport News, VA, USA, 23607
Huntington Ingalls Industries is the largest independent military shipbuilder in the U.S., spun off of Northrop Grumman in 2011. It operates three segments, two of which are historied shipyards: Ingalls produces non-nuclear-powered ships including amphibious landing ships and Arleigh Burke-class destroyers while Newport News produces nuclear-powered ships as the only producer of Gerald Ford-class aircraft carriers and a major subcontractor on Virginia and Columbia-class nuclear submarines. Huntington Ingalls shares production of destroyers and nuclear submarines with General Dynamics' Bath Iron Works and Electric Boat shipyards, respectively. The company's Mission Technologies segment produces uncrewed sea vessels and provides a range of IT and other services to U.S. government agencies.
Executives
Jennifer R. Boykin officer: Vice President, Engineering C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVENUE, NEWPORT NEWS VA 23607
D R Wyatt officer: Corp VP & Treasurer C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVENUE, NEWPORT NEWS VA 23607
Craig S. Faller director C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVE., NEWPORT NEWS VA 23607
Chad N. Boudreaux officer: Ex VP & Chief Legal Officer C/O 4101 WASHINGTON AVENUE, BLDG 909-7, NEWPORT NEWS VA 23607
Nicolas G Schuck officer: Corp VP, Controller & CAO C/OHUNTINGTON INGALLS INDUSTRIES, 4101 WASHINGTON AVENUE, NEWPORT NEWS VA 23607
Christopher W. Soong officer: Ex VP & CIO C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVE., NEWPORT NEWS VA 23607
Hughes Edmond E. Jr. officer: Ex VP & Chief HR Officer C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVE. BLDG 909-7, NEWPORT NEWS VA 23607
Green Edgar A Iii officer: Ex VP, Pres. HII Technical Sol C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVENUE, NEWPORT NEWS VA 23607
Anastasi D Kelly director 88317 WOODLEA MILL ROAD, MCLEAN VA 22102
Eric D. Chewning officer: Ex VP, Strategy & Development C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVE., NEWPORT NEWS VA 23607
Leo P Denault director
Todd A. Borkey officer: Ex VP & Chief Technology Offic C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVE., NEWPORT NEWS VA 23607
Paul C. Harris officer: Ex VP & Chief Sustainability C/O HUNTINGTON INGALLS INDUSTRIES, 4101 WASHINGTON AVE BLDG 909-7, NEWPORT NEWS VA 23607
William R Ermatinger officer: Corp VP & Chief HR Officer C/O HUNTINGTON INGALLS INDUSTRIES, INC., 4101 WASHINGTON AVENUE, NEWPORT NEWS VA 23607
Frank R Jimenez director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061