A Look at Draganfly (CNSX:DPRO) Valuation Following Major U.S. Defense Partnerships and Army Contract Wins

Draganfly (CNSX:DPRO) recently inked a strategic partnership with Global Ordnance, a prominent U.S. defense contractor, to boost adoption of its drone systems within U.S. military markets. This comes just after Draganfly was chosen by the U.S. Army to supply Flex FPV drone systems, establish on-site manufacturing, and support training initiatives. These milestones signal fresh momentum for the company in the defense sector.

See our latest analysis for Draganfly.

Momentum around Draganfly has clearly caught investors’ attention, with the share price soaring 129.76% over the past month and notching an impressive 252.29% return across the last 90 days. The 1-year total shareholder return of 238.2% underscores a remarkable turnaround, especially as military partnerships and contract wins come into focus, even as the multi-year performance remains challenged. If you’re looking to spot other movers in the sector, browse the latest companies shaking up aerospace and defense. See the full list at See the full list for free..

With shares gaining so quickly and new defense deals grabbing headlines, the big question is whether Draganfly remains undervalued or if today’s price fully reflects the company’s emerging growth story. Is there more upside? Or is the market already factoring in all the good news?

Price-to-Book of 16.6x: Is it justified?

Draganfly trades at a price-to-book ratio of 16.6x, which is far above its North American aerospace and defense peers as well as the sector average. At a last close of CA$16.91, this high multiple immediately stands out.

The price-to-book ratio compares a company's market price to its book value per share. It is especially relevant for asset-heavy sectors like aerospace and defense, where book value can provide some sense of underlying worth. For Draganfly, the market is valuing every dollar of the company’s net assets at a significant premium.

With such a high price-to-book ratio, Draganfly appears expensive even when considering growth potential. This valuation could signal investor expectation that recent momentum and military wins will unlock much higher future profits. However, it also leaves little room for disappointment if results do not meet these high expectations.

Draganfly's 16.6x price-to-book ratio is more than four times the industry average of 3.5x and well above its peer average of 7.6x. This pricing puts its shares in premium territory, suggesting the market is betting on significant growth or a major business transformation in the future.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 16.6x (OVERVALUED)

However, Draganfly’s persistent net losses and volatile multi-year returns suggest that growth may not translate into sustained profitability if challenges persist.

Find out about the key risks to this Draganfly narrative.

Build Your Own Draganfly Narrative

If you see the story differently or want to dive deeper into the numbers yourself, shaping your own perspective takes just a few minutes, and you can Do it your way.

A great starting point for your Draganfly research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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