DRS Valuation

Leonardo DRS Inc

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35.330

+0.02(0.057%)1D

DRS Relative Valuation

DRS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DRS is overvalued; if below, it's undervalued.

Historical Valuation

Leonardo DRS Inc (DRS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 29.56 is considered Undervalued compared with the five-year average of 27.84. The fair price of Leonardo DRS Inc (DRS) is between 38.57 to 51.02 according to relative valuation methord. Compared to the current price of 35.33 USD , Leonardo DRS Inc is Undervalued By 8.41%.

Relative Value

Fair Zone

38.57-51.02

Current Price：35.33

8.41%

Undervalued

29.62

Trailing

Forward

19.62

EV/EBITDA

Leonardo DRS Inc. (DRS) has a current EV/EBITDA of 19.62. The 5-year average EV/EBITDA is 17.21. The thresholds are as follows: Strongly Undervalued below 7.98, Undervalued between 7.98 and 12.60, Fairly Valued between 21.83 and 12.60, Overvalued between 21.83 and 26.45, and Strongly Overvalued above 26.45. The current Forward EV/EBITDA of 19.62 falls within the Historic Trend Line -Fairly Valued range.

24.24

EV/EBIT

Leonardo DRS Inc. (DRS) has a current EV/EBIT of 24.24. The 5-year average EV/EBIT is 21.76. The thresholds are as follows: Strongly Undervalued below 11.20, Undervalued between 11.20 and 16.48, Fairly Valued between 27.04 and 16.48, Overvalued between 27.04 and 32.32, and Strongly Overvalued above 32.32. The current Forward EV/EBIT of 24.24 falls within the Historic Trend Line -Fairly Valued range.

35.33

Leonardo DRS Inc. (DRS) has a current PS of 35.33. The 5-year average PS is 2.56. The thresholds are as follows: Strongly Undervalued below -5.78, Undervalued between -5.78 and -1.61, Fairly Valued between 6.73 and -1.61, Overvalued between 6.73 and 10.90, and Strongly Overvalued above 10.90. The current Forward PS of 35.33 falls within the Strongly Overvalued range.

25.94

P/OCF

Leonardo DRS Inc. (DRS) has a current P/OCF of 25.94. The 5-year average P/OCF is 40.25. The thresholds are as follows: Strongly Undervalued below -166.23, Undervalued between -166.23 and -62.99, Fairly Valued between 143.49 and -62.99, Overvalued between 143.49 and 246.73, and Strongly Overvalued above 246.73. The current Forward P/OCF of 25.94 falls within the Historic Trend Line -Fairly Valued range.

37.12

P/FCF

Leonardo DRS Inc. (DRS) has a current P/FCF of 37.12. The 5-year average P/FCF is 29.68. The thresholds are as follows: Strongly Undervalued below 5.22, Undervalued between 5.22 and 17.45, Fairly Valued between 41.90 and 17.45, Overvalued between 41.90 and 54.13, and Strongly Overvalued above 54.13. The current Forward P/FCF of 37.12 falls within the Historic Trend Line -Fairly Valued range.

Leonardo DRS Inc (DRS) has a current Price-to-Book (P/B) ratio of 3.55. Compared to its 3-year average P/B ratio of 2.83 , the current P/B ratio is approximately 25.52% higher. Relative to its 5-year average P/B ratio of 2.83, the current P/B ratio is about 25.52% higher. Leonardo DRS Inc (DRS) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 0.98%, the current FCF yield is approximately -97.11% lower. Relative to its 5-year average FCF yield of 0.98% , the current FCF yield is about -97.11% lower.

3.55

P/B

Median3y

2.83

Median5y

2.83

2.82

FCF Yield

Median3y

0.98

Median5y

0.98

Competitors Valuation Multiple

The average P/S ratio for DRS's competitors is 67.61, providing a benchmark for relative valuation. Leonardo DRS Inc Corp (DRS) exhibits a P/S ratio of 35.33, which is -47.74% above the industry average. Given its robust revenue growth of 18.23%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Mirion Technologies Inc

Performance Decomposition

Market capitalization of DRS increased by 1.61% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 812.00M to 960.00M.

The secondary factor is the Margin Expansion, contributed 6.84%to the performance.

Overall, the performance of DRS in the past 1 year is driven by Revenue Growth. Which is more sustainable.

18.23%

812.00M → 960.00M

Revenue Growth

6.84%

7.02 → 7.50

Margin Expansion

-23.46%

46.66 → 35.71

P/E Change

1.61%