Current Price: ~ $53/share
Raytheon Company ($RTN) filed a 10K annual report for 2010 recently so here's an update to the cash flow valuation posted January 19. This update incorporates the firm's year-end 2010 data. I believe $RTN is fairly valued at $56/share on a cash flow valuation basis.
Raytheon is a major United States defense contractor with nearly $25 billion in annual sales that operates through six segments: integrated defense systems, intelligence and information, missile systems, network-centric systems, space and airborne systems, and technical services. Sales to the U.S. government account for more than 88% of the company's total sales. Waltham, Mass., based Raytheon employs 75,000 people.
I estimated the firm's WACC today at 9.46% using the Capital Asset Pricing Model and the company's recent SEC filings.
|Year||FCF $ Millions|