DRS PE Ratio & Valuation,Is DRS Overvalued

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 29.06 is considered Fairly compared with the five-year average of 27.85. The fair price of Leonardo DRS Inc (DRS) is between 32.29 to 44.03 according to relative valuation methord.

Relative Value

Fair Zone

32.29-44.03

Current Price：33.66

Fair

28.41

19.17

EV/EBITDA

Leonardo DRS Inc. (DRS) has a current EV/EBITDA of 19.17. The 5-year average EV/EBITDA is 17.39. The thresholds are as follows: Strongly Undervalued below 8.32, Undervalued between 8.32 and 12.86, Fairly Valued between 21.92 and 12.86, Overvalued between 21.92 and 26.46, and Strongly Overvalued above 26.46. The current Forward EV/EBITDA of 19.17 falls within the Historic Trend Line -Fairly Valued range.

23.69

EV/EBIT

Leonardo DRS Inc. (DRS) has a current EV/EBIT of 23.69. The 5-year average EV/EBIT is 21.96. The thresholds are as follows: Strongly Undervalued below 11.56, Undervalued between 11.56 and 16.76, Fairly Valued between 27.16 and 16.76, Overvalued between 27.16 and 32.36, and Strongly Overvalued above 32.36. The current Forward EV/EBIT of 23.69 falls within the Historic Trend Line -Fairly Valued range.

2.44

Leonardo DRS Inc. (DRS) has a current PS of 2.44. The 5-year average PS is 2.10. The thresholds are as follows: Strongly Undervalued below 0.79, Undervalued between 0.79 and 1.45, Fairly Valued between 2.76 and 1.45, Overvalued between 2.76 and 3.41, and Strongly Overvalued above 3.41. The current Forward PS of 2.44 falls within the Historic Trend Line -Fairly Valued range.

25.30

P/OCF

Leonardo DRS Inc. (DRS) has a current P/OCF of 25.30. The 5-year average P/OCF is 39.48. The thresholds are as follows: Strongly Undervalued below -160.86, Undervalued between -160.86 and -60.69, Fairly Valued between 139.65 and -60.69, Overvalued between 139.65 and 239.82, and Strongly Overvalued above 239.82. The current Forward P/OCF of 25.30 falls within the Historic Trend Line -Fairly Valued range.

36.21

P/FCF

Leonardo DRS Inc. (DRS) has a current P/FCF of 36.21. The 5-year average P/FCF is 30.23. The thresholds are as follows: Strongly Undervalued below 6.03, Undervalued between 6.03 and 18.13, Fairly Valued between 42.33 and 18.13, Overvalued between 42.33 and 54.43, and Strongly Overvalued above 54.43. The current Forward P/FCF of 36.21 falls within the Historic Trend Line -Fairly Valued range.

Leonardo DRS Inc (DRS) has a current Price-to-Book (P/B) ratio of 3.46. Compared to its 3-year average P/B ratio of 2.87 , the current P/B ratio is approximately 20.53% higher. Relative to its 5-year average P/B ratio of 2.85, the current P/B ratio is about 21.60% higher. Leonardo DRS Inc (DRS) has a Forward Free Cash Flow (FCF) yield of approximately 2.89%. Compared to its 3-year average FCF yield of 1.07%, the current FCF yield is approximately 169.92% lower. Relative to its 5-year average FCF yield of 1.04% , the current FCF yield is about 176.73% lower.

3.39

P/B

Median3y

2.87

Median5y

2.85

2.89

FCF Yield

Median3y

1.07

Median5y

1.04

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

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DRS increased by 4.24% 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

-20.83%

43.01 → 34.05

P/E Change

4.24%

32.31 → 33.68

Mkt Cap Growth

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Frequently Asked Questions

Is Leonardo DRS Inc (DRS) currently overvalued or undervalued?

What is Leonardo DRS Inc (DRS) fair value?

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. The fair price of Leonardo DRS Inc (DRS) is between 32.29 to 44.03 according to relative valuation methord.

How does DRS's valuation metrics compare to the industry average?

What is the current P/B ratio for Leonardo DRS Inc (DRS) as of Dec 16 2025?

As of Dec 16 2025, Leonardo DRS Inc (DRS) has a P/B ratio of 3.46. This indicates that the market values DRS at 3.46 times its book value.

What is the current FCF Yield for Leonardo DRS Inc (DRS) as of Dec 16 2025?

As of Dec 16 2025, Leonardo DRS Inc (DRS) has a FCF Yield of 2.89%. This means that for every dollar of Leonardo DRS Inc’s market capitalization, the company generates 2.89 cents in free cash flow.

What is the current Forward P/E ratio for Leonardo DRS Inc (DRS) as of Dec 16 2025?

As of Dec 16 2025, Leonardo DRS Inc (DRS) has a Forward P/E ratio of 29.06. This means the market is willing to pay $29.06 for every dollar of Leonardo DRS Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Leonardo DRS Inc (DRS) as of Dec 16 2025?

As of Dec 16 2025, Leonardo DRS Inc (DRS) has a Forward P/S ratio of 2.44. This means the market is valuing DRS at $2.44 for every dollar of expected revenue over the next 12 months.

DRS Valuation