Name: Northrop Grumman Corp. (NYSE:NOC) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Northrop Grumman Corp., current enterprise value calculation

Current share price (P)	$457.68
No. shares of common stock outstanding	151,859,445
US$ in millions
Common equity (market value)¹	69,503)
Add: Preferred stock, $1 par value; no shares issued and outstanding (per books)	—)
Total equity	69,503)
Add: Current portion of long-term debt (per books)	1,072)
Add: Long-term debt, net of current portion (per books)	11,805)
Total equity and debt	82,380)
Less: Cash and cash equivalents	2,577)
Enterprise value (EV)	79,803)

Based on: 10-K (reporting date: 2022-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 457.68 × 151,859,445

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Northrop Grumman Corp., EV calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Share price^1, 2	$443.47	$373.99	$293.03	$384.87	$275.55
No. shares of common stock outstanding¹	153,053,371	156,101,934	166,718,384	167,637,130	169,737,507
US$ in millions
Common equity (market value)³	67,875)	58,381)	48,853)	64,519)	46,771)
Add: Preferred stock, $1 par value; no shares issued and outstanding (book value)	—)	—)	—)	—)	—)
Total equity	67,875)	58,381)	48,853)	64,519)	46,771)
Add: Current portion of long-term debt (book value)	1,072)	6)	742)	1,109)	517)
Add: Long-term debt, net of current portion (book value)	11,805)	12,777)	14,261)	12,770)	13,883)
Total equity and debt	80,752)	71,164)	63,856)	78,398)	61,171)
Less: Cash and cash equivalents	2,577)	3,530)	4,907)	2,245)	1,579)
Enterprise value (EV)	78,175)	67,634)	58,949)	76,153)	59,592)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Northrop Grumman Corp. Annual Report.

³ 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 443.47 × 153,053,371

The financial trajectory from 2018 to 2022 is characterized by moderate volatility with an overall upward trend in valuation. A significant contraction in value was observed in 2020, which was subsequently followed by a consistent two-year recovery period ending in 2022.

Enterprise Value (EV) Fluctuations: Enterprise value experienced a non-linear progression, increasing from 59,592 million USD in 2018 to a peak of 76,153 million USD in 2019. A sharp decline occurred in 2020, with EV dropping to 58,949 million USD, effectively erasing the gains of the previous year. However, a steady recovery followed, with the value rising to 67,634 million USD in 2021 and reaching a period high of 78,175 million USD by the end of 2022.
Equity Market Value Trends: The market value of common equity mirrored the movements of the enterprise value closely. After rising from 46,771 million USD in 2018 to 64,519 million USD in 2019, it retreated to 48,853 million USD in 2020. The subsequent growth phase saw equity values climb to 58,381 million USD in 2021 and conclude at 67,875 million USD in 2022, indicating a restoration of investor confidence and market capitalization.
Relationship Between Total Capital and EV: Total equity and debt consistently remained higher than the enterprise value across all five years. For instance, in 2022, total equity and debt stood at 80,752 million USD compared to an EV of 78,175 million USD. This persistent gap suggests that the company maintained a consistent level of cash and cash equivalents, which serves to offset the total capital employed when calculating the total enterprise value.
Overall Valuation Growth: Despite the volatility observed in 2020, the long-term trend is positive. The enterprise value grew by approximately 31.2% between 2018 and 2022, while the market value of common equity increased by approximately 45% over the same period, demonstrating a net expansion of the company's overall valuation.

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Northrop Grumman Corp. (NYSE:NOC)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)