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KTOS

Kratos Defense & Security Solutions, Inc.

Industrials · $8.6B market cap

Verdict

Share price

$43.07

close of Oct 3, 2026

Fair value

$11.45

Sticker Price

Payback Price

$4.58

buy price

Overpriced

KTOS is Overpriced: at $43.07 it trades 276% above its fair value of $11.45. Its buy price (Payback Price) is $4.58, 89% below today's price. Business quality is limited: none of the 5 key numbers clears the 10% bar.

How we valued it

EV/EBITDA. Depreciation and interest costs distort its earnings, so the earnings-based methods gave an unrealistic answer. We value the whole business on its operating profit before those costs (EBITDA) instead, then adjust for debt and cash.

Business quality

0 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth3.0% a year✗
Equity per share growth-1.3% a year✗
Sales growth7.6% a year✗
Free cash flow growth0.4% a year✗
Return on invested capital0.8%✗

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Superinvestors

None of the investors we track holds KTOS right now. In Q2 2026, 1 sold out. Who we track

Moves in Q2 2026

Sold out: Polen Capital Management

About Kratos Defense & Security Solutions, Inc.

Kratos Defense & Security Solutions, Inc. primarily functions as a contractor for the United States Department of Defense. Its business operations are organized into two distinct divisions: Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment delivers a comprehensive suite of products and services, including advanced microwave electronics, solutions for space and satellite…

Aerospace & Defense

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works