Leonardo DRS Valuation

Q: What is the Fair Price of 2VZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2VZ (€32.38) is trading above our estimate of [[fair value]] (€25.22)

Is 2VZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2VZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2VZ (€32.38) is trading above our estimate of fair value (€25.22)

Significantly Below Fair Value: 2VZ is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2VZ?

Key metric: As 2VZ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2VZ. This is calculated by dividing 2VZ's market cap by their current earnings.
What is 2VZ's PE Ratio?
PE Ratio	46.3x
Earnings	US$198.00m
Market Cap	US$9.22b

2VZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	25x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

How does 2VZ's PE Ratio compare to its peers?

The above table shows the PE ratio for 2VZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.5x
MTX MTU Aero Engines	23.7x	11.2%	€16.8b
RHM Rheinmetall	39x	29.0%	€26.7b
OHB OHB	12.8x	11.0%	€888.7m
FQT Frequentis	18.5x	14.9%	€317.1m
2VZ Leonardo DRS	46.3x	21.0%	€9.2b

Price-To-Earnings vs Peers: 2VZ is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does 2VZ's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2VZ is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the European Aerospace & Defense industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is 2VZ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2VZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	46.3x
Fair PE Ratio	24x

Price-To-Earnings vs Fair Ratio: 2VZ is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the estimated Fair Price-To-Earnings Ratio (24x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2VZ forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€32.38	€34.31 +6.0%	7.5%	€37.86	€30.29	n/a	8
Nov ’25	€27.79	€32.30 +16.2%	8.6%	€36.91	€27.68	n/a	8
Oct ’25	€25.11	€27.52 +9.6%	4.2%	€29.53	€25.95	n/a	8
Sep ’25	€25.08	€27.72 +10.5%	6.8%	€30.24	€23.82	n/a	8
Aug ’25	€25.57	€27.45 +7.4%	9.8%	€30.58	€22.24	n/a	8
Jul ’25	€23.41	€24.26 +3.6%	6.9%	€27.99	€22.39	n/a	8
Jun ’25	€21.06	€23.17 +10.0%	3.3%	€23.96	€22.12	n/a	7
May ’25	€19.82	€23.00 +16.1%	3.3%	€23.92	€22.08	n/a	6
Apr ’25	€20.00	€23.00 +15.0%	3.3%	€23.92	€22.08	n/a	6
Mar ’25	€20.20	€22.15 +9.6%	6.4%	€23.99	€20.30	n/a	6
Feb ’25	€17.60	€20.45 +16.2%	4.6%	€21.91	€19.17	n/a	5
Jan ’25	€18.70	€19.92 +6.5%	3.4%	€21.02	€19.19	n/a	5
Dec ’24	€16.50	€19.92 +20.7%	3.4%	€21.02	€19.19	n/a	5
Nov ’24	€17.80	€18.85 +5.9%	3.8%	€19.99	€18.09	€27.79	5
Oct ’24	€15.70	€18.85 +20.0%	3.8%	€19.99	€18.09	€25.11	5
Sep ’24	€15.70	€18.05 +15.0%	4.2%	€19.19	€17.36	€25.08	4
Aug ’24	€15.10	€16.99 +12.5%	4.5%	€17.69	€15.82	€25.57	4
Jul ’24	€15.90	€16.99 +6.8%	4.5%	€17.69	€15.82	€23.41	4
Jun ’24	€13.70	€16.22 +18.4%	7.2%	€17.78	€14.97	€21.06	3
May ’24	€13.50	€16.57 +22.8%	5.6%	€17.49	€15.65	€19.82	2
Apr ’24	€11.20	€16.86 +50.5%	5.6%	€17.79	€15.92	€20.00	2
Mar ’24	€12.10	€16.86 +39.3%	5.6%	€17.79	€15.92	€20.20	2

Analyst Forecast: Target price is less than 20% higher than the current share price.

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