Leonardo DRS, Inc. (DRS) Valuation — DCF, Graham & Comparables

Leonardo DRS, Inc. (DRS) — Price $37.68 (closing price, October 30, 2026) — Industrials — Aerospace & Defense — NASDAQ

Latest reported results:

Valuation dashboard for Leonardo DRS, Inc. (DRS) with P/E 27.71, P/B 3.50, EV/EBITDA 18.93 and dividend yield 0.96%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Industrials companies.

Established in Arlington, Virginia, in 1969, Leonardo DRS, Inc. is a leading supplier of advanced defense products and technologies. The company's diverse portfolio addresses military requirements across various environments, including land, air, sea, space, and cybersecurity, with additional applications in the commercial sector. Its operations are organized into two primary divisions: Advanced Sensing and Computing, and Integrated Mission Systems.

Analysis Summary

Leonardo DRS, Inc. reported revenue of $3.65B in the most recent fiscal year, growing at a 5-year CAGR of 5.6%. Net income reached $278.0M, with a 26.7% 5-year CAGR.

Trailing-twelve-month margins: gross margin 25.3%, operating margin 10.8%, net margin 9.4%.

At $37.68 (closing price, October 30, 2026), DRS trades at a P/E of 27.71 and an ROE of 13.04%. Market capitalisation stands at $10.1B, placing it among large-cap names.

Balance sheet quality for DRS: current ratio of 1.9. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio27.71
Price / Book3.50
EV / EBITDA18.93
Dividend Yield0.96%

Valuation Models

DCF Fair Value$33.19
vs Current Price-11.9%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
DRSLeonardo DRS, Inc.$10.1B27.713.5013.0%
KTOSKratos Defense & Security Solutions, Inc.$7.7B241.142.251.1%
MRCYMercury Systems, Inc.$4.7B3.08-2.0%
RTXRTX Corporation$269.6B32.443.8312.8%
LMTLockheed Martin Corporation$147.1B22.6314.2878.8%
NOCNorthrop Grumman Corporation$79.2B17.594.1725.7%
GDGeneral Dynamics Corporation$100.8B21.903.7417.4%
LHXL3Harris Technologies, Inc.$51.7B25.902.5710.2%

Price

Price$37.68 (closing price, October 30, 2026)
Market Cap$10.1B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity13.04%
Return on Invested Capital11.42%
Return on Assets8.34%
Gross Margin25.25%
Operating Margin10.84%
Net Margin9.40%

Related companies: KTOS · MRCY · RTX · LMT · NOC · GD · LHX · CW

Explore sector: Industrials · Aerospace & Defense

More sections of DRS: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks