* Note: Prices are in Million (M) USD.
Description:
Karman Holdings Inc. is a key player in the aerospace and defense sector, specializing in the design, development, and manufacturing of mission-critical systems through its subsidiary, Karman Space and Defense. The company focuses on innovative solutions for missile and defense applications, space exploration, hypersonic technology, and launch vehicle markets. With a strong commitment to quality and performance, Karman is positioned to capitalize on the growing demand for advanced aerospace technologies in an increasingly competitive landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $27 M
Debt : $404 M
EBITDA : $100 M
Net Debt (Debt - Cash): $377 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Aerospace & defense
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 144.71
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 3 overlapping fiscal years (max 20).Average Free Cash Flow: $-4 M
Average Revenue: $284 M
Revenue Converted To Free Cash Flow (%): -1.4%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $345 M
Revenue 2 Years Ago (2022-12-31): $226 M
Total Growth over 2 Years: 52.6%
2-Year Revenue CAGR (Historical): 23.5%
Forward 5-Year CAGR (Tapered): 16.5%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Error: This stock does not have 5 years of share count data.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.60
Trailing 12-Month Earnings Per Share (EPS): $0.42
Average Earnings Per Share (EPS): $0.51
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 3 valid ROE years (max 20).Average ROE: 0.3%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $74.22
52-Week Low: $0.00
Threshold Price (15% Above 52-Week Low): $0.00
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $7,431 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 10 points to above Karman Holdings Inc. (KRMN) stock.
Fair Value PE
12, Industry Based PE
18, Growth Based PE
16.46, ROE Based PE
0.31, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 5 values, average assigned is
12.99. Value-Trades has assined P/E value
13.00. An average (Current Year EPS + Next Year EPS) earning per share is
$0.5129.
Fair value using multiple P/Es (blended): $6.67 (PE 12.99 × EPS $0.51)
So the Final Fair Value is: $6.67
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.51
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 13 | $6.67 |
