Leonardo DRS Valuation

Is DRS 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 DRS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRS ($36.25) is trading above our estimate of fair value ($25.89)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DRS. This is calculated by dividing DRS's market cap by their current earnings.
What is DRS's PE Ratio?
PE Ratio48.4x
EarningsUS$198.00m
Market CapUS$9.58b

Price to Earnings Ratio vs Peers

How does DRS's PE Ratio compare to its peers?

The above table shows the PE ratio for DRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.4x
HII Huntington Ingalls Industries
11.1x6.9%US$7.8b
WWD Woodward
28.2x6.2%US$10.5b
BWXT BWX Technologies
43.9x10.2%US$12.2b
MOG.A Moog
34.4x20.2%US$7.1b
DRS Leonardo DRS
48.4x20.9%US$9.6b

Price-To-Earnings vs Peers: DRS is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the peer average (29.4x).


Price to Earnings Ratio vs Industry

How does DRS's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
2.8xn/aUS$48.62m
ETCC Environmental Tectonics
4.9xn/aUS$31.14m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
DRS 48.4xIndustry Avg. 35.1xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRS is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the US Aerospace & Defense industry average (35.1x).


Price to Earnings Ratio vs Fair Ratio

What is DRS'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.

DRS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.4x
Fair PE Ratio28.1x

Price-To-Earnings vs Fair Ratio: DRS is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.1x).


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 DRS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.25
US$35.00
-3.4%
8.6%US$40.00US$30.00n/a8
Nov ’25US$30.72
US$35.00
+13.9%
8.6%US$40.00US$30.00n/a8
Oct ’25US$29.70
US$30.75
+3.5%
4.2%US$33.00US$29.00n/a8
Sep ’25US$28.54
US$30.25
+6.0%
6.8%US$33.00US$26.00n/a8
Aug ’25US$27.73
US$29.63
+6.8%
9.8%US$33.00US$24.00n/a8
Jul ’25US$25.28
US$26.00
+2.8%
6.9%US$30.00US$24.00n/a8
Jun ’25US$23.55
US$25.14
+6.8%
3.3%US$26.00US$24.00n/a7
May ’25US$20.52
US$25.00
+21.8%
3.3%US$26.00US$24.00n/a6
Apr ’25US$21.52
US$25.00
+16.2%
3.3%US$26.00US$24.00n/a6
Mar ’25US$22.84
US$24.00
+5.1%
6.4%US$26.00US$22.00n/a6
Feb ’25US$19.88
US$22.40
+12.7%
4.6%US$24.00US$21.00n/a5
Jan ’25US$20.04
US$21.80
+8.8%
3.4%US$23.00US$21.00n/a5
Dec ’24US$18.96
US$21.80
+15.0%
3.4%US$23.00US$21.00n/a5
Nov ’24US$19.50
US$19.80
+1.5%
3.8%US$21.00US$19.00US$30.725
Oct ’24US$16.70
US$19.80
+18.6%
3.8%US$21.00US$19.00US$29.705
Sep ’24US$17.42
US$19.75
+13.4%
4.2%US$21.00US$19.00US$28.544
Aug ’24US$16.45
US$18.25
+10.9%
4.5%US$19.00US$17.00US$27.734
Jul ’24US$17.34
US$18.25
+5.2%
4.5%US$19.00US$17.00US$25.284
Jun ’24US$15.33
US$17.33
+13.1%
7.2%US$19.00US$16.00US$23.553
May ’24US$15.30
US$18.00
+17.6%
5.6%US$19.00US$17.00US$20.522
Apr ’24US$12.97
US$18.00
+38.8%
5.6%US$19.00US$17.00US$21.522
Mar ’24US$13.00
US$18.00
+38.5%
5.6%US$19.00US$17.00US$22.842

Analyst Forecast: Target price is lower than the current share price.


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