DRS Valuation

Leonardo DRS Inc

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48.360

+0.28(0.582%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 43.60 is considered Overvalued compared with the five-year average of 26.87. The fair price of Leonardo DRS Inc (DRS) is between 28.55 to 39.28 according to relative valuation methord. Compared to the current price of 48.36 USD , Leonardo DRS Inc is Overvalued By 23.11%.

Relative Value

Fair Zone

28.55-39.28

Current Price：48.36

23.11%

Overvalued

43.60

Trailing

Forward

28.02

EV/EBITDA

Leonardo DRS Inc. (DRS) has a current EV/EBITDA of 28.02. The 5-year average EV/EBITDA is 16.51. The thresholds are as follows: Strongly Undervalued below 8.46, Undervalued between 8.46 and 12.49, Fairly Valued between 20.54 and 12.49, Overvalued between 20.54 and 24.57, and Strongly Overvalued above 24.57. The current Forward EV/EBITDA of 28.02 falls within the Strongly Overvalued range.

34.25

EV/EBIT

Leonardo DRS Inc. (DRS) has a current EV/EBIT of 34.25. The 5-year average EV/EBIT is 21.06. The thresholds are as follows: Strongly Undervalued below 11.40, Undervalued between 11.40 and 16.23, Fairly Valued between 25.88 and 16.23, Overvalued between 25.88 and 30.71, and Strongly Overvalued above 30.71. The current Forward EV/EBIT of 34.25 falls within the Strongly Overvalued range.

3.60

Leonardo DRS Inc. (DRS) has a current PS of 3.60. The 5-year average PS is 1.99. The thresholds are as follows: Strongly Undervalued below 0.75, Undervalued between 0.75 and 1.37, Fairly Valued between 2.61 and 1.37, Overvalued between 2.61 and 3.23, and Strongly Overvalued above 3.23. The current Forward PS of 3.60 falls within the Strongly Overvalued range.

35.86

P/OCF

Leonardo DRS Inc. (DRS) has a current P/OCF of 35.86. The 5-year average P/OCF is 41.15. The thresholds are as follows: Strongly Undervalued below -173.38, Undervalued between -173.38 and -66.11, Fairly Valued between 148.42 and -66.11, Overvalued between 148.42 and 255.69, and Strongly Overvalued above 255.69. The current Forward P/OCF of 35.86 falls within the Historic Trend Line -Fairly Valued range.

52.03

P/FCF

Leonardo DRS Inc. (DRS) has a current P/FCF of 52.03. The 5-year average P/FCF is 28.62. The thresholds are as follows: Strongly Undervalued below 4.39, Undervalued between 4.39 and 16.51, Fairly Valued between 40.74 and 16.51, Overvalued between 40.74 and 52.86, and Strongly Overvalued above 52.86. The current Forward P/FCF of 52.03 falls within the Overvalued range.

Leonardo DRS Inc (DRS) has a current Price-to-Book (P/B) ratio of 5.01. Compared to its 3-year average P/B ratio of 2.67 , the current P/B ratio is approximately 87.51% higher. Relative to its 5-year average P/B ratio of 2.67, the current P/B ratio is about 87.51% higher. Leonardo DRS Inc (DRS) has a Forward Free Cash Flow (FCF) yield of approximately 2.26%. Compared to its 3-year average FCF yield of 0.85%, the current FCF yield is approximately 166.16% lower. Relative to its 5-year average FCF yield of 0.85% , the current FCF yield is about 166.16% lower.

5.01

P/B

Median3y

2.67

Median5y

2.67

2.26

FCF Yield

Median3y

0.85

Median5y

0.85

Competitors Valuation Multiple

The average P/S ratio for DRS's competitors is 1349.98, providing a benchmark for relative valuation. Leonardo DRS Inc Corp (DRS) exhibits a P/S ratio of 3.60, which is -99.73% above the industry average. Given its robust revenue growth of 16.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DRS increased by 70.50% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.22 to 6.26.

The secondary factor is the Revenue Growth, contributed 16.13%to the performance.

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

16.13%

688.00M → 799.00M

Revenue Growth

48.34%

4.22 → 6.26

Margin Expansion

6.03%

51.95 → 55.09

P/E Change

70.50%