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L3harris Technologies Inc

LHXAbove valueExpectations · demanding

Held by 4 superinvestors.

Price$262.96
Holders4
Total value$126.7M

SEC 10-K · fundamentals

Business quality

as of 2026-01-02
Revenue growth
—
Net margin
—
ROE
8.2%
FCF margin
—
Revenue $18.19B → $21.32B · 5y
What makes a business high quality

Valuation · value band

Above fair value

$101/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$263
cheaperpricier

Zero-growth floor

$50

Central IV

$101

Optimistic top

$119

L3harris Technologies Inc (LHX): A conservative value band $50–$119 / sh (zero-growth floor to growth-capped optimistic top); central read about $101. Today’s price sits above that band (price $263 as of 2026-08-26).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 4% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 12.3% · Zero-growth downside $50

Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.

Method & numbers

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $72.81 – $119.41 · Greenwald zero-growth $84.29 · zero-growth base $84.29 · reproduction $29.36

Moat Franchise (moat) · terminal value 41% of present value · owner-earnings yield 3% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$49.57 – $73.54 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2024, 2023, 2022, 2021, 2020

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 149% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).

Buffett owner-earnings value$71.04 – $84.29 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 10.7–12.7% band (9–11% base + 1.7pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2024, 2023, 2022, 2021, 2020

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 149% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 1.7pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 6.4 years of owner earnings, adding 1.7pp of cost-of-equity risk premium.

Asset floor: Reproduction value = tangible net assets + acquired-intangible reset proxy, ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise (no R&D history to capitalize).

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.

Window FY 2024, 2023, 2022, 2021, 2020 · discount band 9%–11% · normalized tax 12% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 6.4 years of owner earnings → +1.7pp cost-of-equity premium → effective 10.7%–12.7%.

Owner-earnings DCF: growth g₁ 4% · OE FY 2024, 2023, 2022, 2021, 2020 · Discount band: 10.88%–13.72% (DGS10 +4.5% to a 12% strict end, each +1.72pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

What the price is betting

Today's price pencils in about 22.7% a year in owner-earnings for the next few years. Revenue actually grew 4.1% a year.

The market wants it well ahead of its own track record.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

4 holders · $126.7M combined · this quarter +0 opened / -1 exited

This quarter1 added2 trimmed1 exited
Holders 3 → 3 · last 8q
Exited this quarter (1)
David Tepper

SEC 13F · notes

Written summary

L3harris Technologies Inc (LHX) is held by 4 of the superinvestors tracked on Compounder, with a combined $126.7M in reported 13F value. The largest position belongs to Donald Yacktman, where it makes up 1.5% of the portfolio.

Other notable holders by value include Ray Dalio (0.0% of its book), Robert Olstein (0.6% of its book) and Jeremy Grantham (0.0% of its book).

Over the latest quarter, 0 of the tracked filers opened a new position in LHX, 1 added to existing ones, 2 trimmed, and 1 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding L3harris Technologies Inc (LHX) also commonly hold →

LHX's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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