Anjos, FernandoKrivchev, Vasil Tanchev2025-02-272025-02-272024-02-022024-02-02http://hdl.handle.net/10362/179927This paper conducts a company analysis and equity valuation of Lockheed Martin and the RTX Corporation, incorporating current financials, forecasts, and market scenarios. The objectives are twofold: to establish a probability-weighted price target for each company and to devise pairs trade strategies leveraging stock price differentials. Findings suggest, as of 22nd of September 2023, the market is undervaluing LMT and accurately valuing RTX. Testing multiple pairs trade strategies suggests that a scenario adjusted pair trade of going long in LMT and shorting RTX, used as a defensive strategy, can minimize market risk, and potentially generate alpha.engPairs tradeEquity valuationScenario analysisDcfMultiplesVolatilityTrend followingScenarios Pairs trademaster thesis203866401