Leonardo DRS, Inc.

NasdaqGS:DRS Stock Report

Market Cap: US$9.9b

Leonardo DRS Valuation

Is DRS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DRS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: DRS ($36.06) is trading above our estimate of future cash flow value ($31.55)

Significantly Below Future Cash Flow Value: DRS is trading above our estimate of future cash flow value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRS?

Key metric: As DRS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DRS. This is calculated by dividing DRS's market cap by their current earnings.
What is DRS's PE Ratio?
PE Ratio29.9x
EarningsUS$322.00m
Market CapUS$9.86b

Price to Earnings Ratio vs Peers

How does DRS's PE Ratio compare to its peers?

The above table shows the PE ratio for DRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
MOG.A Moog
30.9x-0.016%US$11.7b
HII Huntington Ingalls Industries
16.7x10.67%US$11.3b
BWXT BWX Technologies
40.4x11.76%US$14.7b
SARO StandardAero
24.3x17.31%US$8.0b
DRS Leonardo DRS
29.9x10.48%US$9.9b

Price-To-Earnings vs Peers: DRS is expensive based on its Price-To-Earnings Ratio (29.9x) compared to the peer average (28.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does DRS's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
DRS 29.9xIndustry Avg. 36.3xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRS is good value based on its Price-To-Earnings Ratio (29.9x) compared to the US Aerospace & Defense industry average (36.3x).

Price to Earnings Ratio vs Fair Ratio

What is DRS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.9x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: DRS is expensive based on its Price-To-Earnings Ratio (29.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DRS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.06
US$54.10
+50.03%
6.21%US$59.00US$47.00n/a10
Sep ’27US$37.70
US$54.10
+43.50%
6.21%US$59.00US$47.00n/a10
Aug ’27US$46.05
US$53.90
+17.05%
6.45%US$59.00US$47.00n/a10
Jul ’27US$42.69
US$52.90
+23.93%
6.94%US$59.00US$47.00n/a10
Jun ’27US$47.96
US$52.90
+10.30%
6.94%US$59.00US$47.00n/a10
May ’27US$40.03
US$52.00
+29.90%
6.72%US$59.00US$47.00n/a10
Apr ’27US$45.86
US$51.40
+12.08%
7.13%US$59.00US$47.00n/a10
Mar ’27US$43.39
US$50.90
+17.31%
6.83%US$59.00US$47.00n/a10
Feb ’27US$41.06
US$48.10
+17.15%
10.33%US$55.00US$40.00n/a10
Jan ’27US$34.09
US$46.90
+37.58%
8.39%US$51.00US$40.00n/a10
Dec ’26US$33.24
US$47.30
+42.30%
6.76%US$50.00US$40.00n/a10
Nov ’26US$36.56
US$48.00
+31.29%
4.37%US$50.00US$45.00n/a10
Oct ’26US$44.58
US$49.00
+9.91%
4.28%US$53.00US$45.00n/a10
Sep ’26US$41.66
US$49.00
+17.62%
4.28%US$53.00US$45.00US$37.7010
Aug ’26US$41.67
US$48.67
+16.79%
5.39%US$53.00US$43.00US$46.059
Jul ’26US$45.09
US$47.11
+4.48%
5.34%US$50.00US$43.00US$42.699
Jun ’26US$42.30
US$43.00
+1.65%
10.40%US$49.00US$33.00US$47.968
May ’26US$40.23
US$38.75
-3.68%
12.02%US$46.00US$33.00US$40.038
Apr ’26US$32.87
US$37.50
+14.09%
8.64%US$42.00US$33.00US$45.868
Mar ’26US$30.45
US$37.50
+23.15%
8.64%US$42.00US$33.00US$43.398
Feb ’26US$35.15
US$37.13
+5.62%
8.88%US$42.00US$32.00US$41.068
Jan ’26US$32.31
US$37.00
+14.52%
8.96%US$42.00US$32.00US$34.098
Dec ’25US$34.77
US$37.00
+6.41%
8.96%US$42.00US$32.00US$33.248
Nov ’25US$30.72
US$35.00
+13.93%
8.57%US$40.00US$30.00US$36.568
Oct ’25US$29.70
US$30.75
+3.54%
4.22%US$33.00US$29.00US$44.588
Sep ’25US$28.54
US$30.25
+5.99%
6.76%US$33.00US$26.00US$41.668
US$54.1
Fair Value
33.3% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/09 21:50
End of Day Share Price 2026/09/09 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Leonardo DRS, Inc. is covered by 12 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Peter ArmentBaird
Ronald EpsteinBofA Global Research
Andre MadridBTIG