Is L3Harris Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for L3Harris Technologies, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 27, a Price to Book Value of 2.39, and an EV to EBITDA of 16.55. In comparison to peers, RTX Corp. has a higher P/E of 37.08, while Lockheed Martin Corp. has a lower P/E of 25.66, indicating that L3Harris is positioned reasonably within its industry.
Despite its fair valuation, L3Harris has shown strong performance year-to-date with a return of 35.00%, significantly outperforming the S&P 500's return of 13.30% over the same period. However, over longer time horizons, such as the 3-year and 5-year returns, L3Harris has lagged behind the S&P 500, which raises some concerns about its long-term growth potential.