* Note: Prices are in Million (M) USD.
Description:
Karman Holdings Inc., through its subsidiary, Karman Space and Defense, engages in designing, testing, manufacturing, and sale of mission-critical systems for missile and defense, space programs, hypersonic, and launch vehicle markets.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $34 M
Debt : $10 M
EBITDA : $130 M
Since Cash is greater than Total Debt, 5 points assigned.
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: 80.65
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 4 overlapping fiscal years (max 20).Average Free Cash Flow: $-14 M
Average Revenue: $331 M
Revenue Converted To Free Cash Flow (%): -4.1%
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 (2025-12-31): $472 M
Revenue 3 Years Ago (2022-12-31): $226 M
Total Growth over 3 Years: 108.3%
3-Year Revenue CAGR (Historical): 27.7%
Forward 5-Year CAGR (Tapered): 13.9%
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): $0.98
Trailing 12-Month Earnings Per Share (EPS): $0.65
Average Earnings Per Share (EPS): $0.82
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
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 4 valid ROE years (max 20).Average ROE: 1.2%
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: $65.73
52-Week Low: $26.60
Threshold Price (15% Above 52-Week Low): $30.59
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $11,393 M
Since Market Cap is between 10B - 100B, 2 points 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 16 points to above Karman Holdings Inc. (KRMN) stock.
Fair Value PE
12, Industry Based PE
18, Growth Based PE
15, ROE Based PE
1.15, Risk-Free Anchored PE (25% MoS)
17.36. Based on these 5 values, average assigned is
12.70. Value-Trades has assined P/E value
12.70. An average (Current Year EPS + Next Year EPS) earning per share is
$0.815.
Fair value using multiple P/Es (blended): $10.35 (PE 12.70 × EPS $0.82)
So the Final Fair Value is: $10.35
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: $0.82
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 203.25 | $165.65 |
| Value-Trades Assigned | 12.7 | $10.35 |
