Lockheed has a market beta of 0.7 -- So it's correlated with the general market fairly strongly. On aggregate, if the market increases or decreases by 1%, you'd expect Lockheed to follow the market by 0.7%.
Today most of the major indices are down ~1%, Lockheed is down 0.4%, so you could attribute that 0.3% deviation from the expected number as reactor news. 0.3% of Lockheed's market cap represents about $170M today.
It's obviously not this straightforward, but if I were a shitty journalist, I could make the case that this is actually a pretty good result since commercialization will likely be a decade away, it will take a ton of resources and investment to get there, and there's a high chance of failure.
A shitty DCF with a ramp to $500M/year in R&D, 75% margins on sales, and a $10B/year business in perpetuity comes out to $170M NPV with a ~31% discount rate --- Not too unrealistic.
Lockheed has a market beta of 0.7 -- So it's correlated with the general market fairly strongly. On aggregate, if the market increases or decreases by 1%, you'd expect Lockheed to follow the market by 0.7%.
Today most of the major indices are down ~1%, Lockheed is down 0.4%, so you could attribute that 0.3% deviation from the expected number as reactor news. 0.3% of Lockheed's market cap represents about $170M today.
It's obviously not this straightforward, but if I were a shitty journalist, I could make the case that this is actually a pretty good result since commercialization will likely be a decade away, it will take a ton of resources and investment to get there, and there's a high chance of failure.
A shitty DCF with a ramp to $500M/year in R&D, 75% margins on sales, and a $10B/year business in perpetuity comes out to $170M NPV with a ~31% discount rate --- Not too unrealistic.