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 Fair zone, suggesting that its current forward PE ratio of 28.50 is considered Fairly compared with the five-year average of 27.84. The fair price of Leonardo DRS Inc (DRS) is between 32.60 to 44.67 according to relative valuation methord.
Relative Value
Fair Zone
32.60-44.67
Current Price：33.79
Fair
28.93
PE
1Y
3Y
5Y
Trailing
Forward
18.80
EV/EBITDA
Leonardo DRS Inc. (DRS) has a current EV/EBITDA of 18.80. The 5-year average EV/EBITDA is 17.37. The thresholds are as follows: Strongly Undervalued below 8.27, Undervalued between 8.27 and 12.82, Fairly Valued between 21.93 and 12.82, Overvalued between 21.93 and 26.48, and Strongly Overvalued above 26.48. The current Forward EV/EBITDA of 18.80 falls within the Historic Trend Line -Fairly Valued range.
23.23
EV/EBIT
Leonardo DRS Inc. (DRS) has a current EV/EBIT of 23.23. The 5-year average EV/EBIT is 21.95. The thresholds are as follows: Strongly Undervalued below 11.50, Undervalued between 11.50 and 16.72, Fairly Valued between 27.17 and 16.72, Overvalued between 27.17 and 32.39, and Strongly Overvalued above 32.39. The current Forward EV/EBIT of 23.23 falls within the Historic Trend Line -Fairly Valued range.
2.39
PS
Leonardo DRS Inc. (DRS) has a current PS of 2.39. The 5-year average PS is 2.10. The thresholds are as follows: Strongly Undervalued below 0.79, Undervalued between 0.79 and 1.44, Fairly Valued between 2.76 and 1.44, Overvalued between 2.76 and 3.41, and Strongly Overvalued above 3.41. The current Forward PS of 2.39 falls within the Historic Trend Line -Fairly Valued range.
24.81
P/OCF
Leonardo DRS Inc. (DRS) has a current P/OCF of 24.81. The 5-year average P/OCF is 39.62. The thresholds are as follows: Strongly Undervalued below -161.64, Undervalued between -161.64 and -61.01, Fairly Valued between 140.25 and -61.01, Overvalued between 140.25 and 240.87, and Strongly Overvalued above 240.87. The current Forward P/OCF of 24.81 falls within the Historic Trend Line -Fairly Valued range.
35.50
P/FCF
Leonardo DRS Inc. (DRS) has a current P/FCF of 35.50. The 5-year average P/FCF is 30.18. The thresholds are as follows: Strongly Undervalued below 5.89, Undervalued between 5.89 and 18.03, Fairly Valued between 42.32 and 18.03, Overvalued between 42.32 and 54.46, and Strongly Overvalued above 54.46. The current Forward P/FCF of 35.50 falls within the Historic Trend Line -Fairly Valued range.
Leonardo DRS Inc (DRS) has a current Price-to-Book (P/B) ratio of 3.40. Compared to its 3-year average P/B ratio of 2.85 , the current P/B ratio is approximately 19.06% higher. Relative to its 5-year average P/B ratio of 2.84, the current P/B ratio is about 19.47% higher. Leonardo DRS Inc (DRS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.04%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.03% , the current FCF yield is about -100.00% lower.
3.45
P/B
Median3y
2.85
Median5y
2.84
2.95
FCF Yield
Median3y
1.04
Median5y
1.03
Competitors Valuation Multiple
The average P/S ratio for DRS's competitors is , providing a benchmark for relative valuation. Leonardo DRS Inc Corp (DRS) exhibits a P/S ratio of , which is NaN% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DRS increased by 6.19% 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.
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FAQ
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