Is Leidos Holdings, Inc. overvalued or undervalued?

As of 29 November 2024, the valuation grade for Leidos Holdings, Inc. has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently undervalued, supported by a P/E ratio of 14, which is significantly lower than the industry average, as seen with peers like Teledyne Technologies, Inc. at 26.81 and Textron, Inc. at 15.94. Additionally, Leidos boasts a PEG ratio of 0.40, suggesting strong growth potential relative to its price, and a robust ROE of 31.80%, reflecting effective management of equity.
In comparison to its peers, Leidos's EV to EBITDA stands at 10.49, which is more favorable than Teledyne's 19.30, further reinforcing its attractive valuation. Despite a recent dip in stock performance over the past month, where it returned -1.19% compared to the S&P 500's 3.83%, the overall metrics suggest that Leidos Holdings, Inc. is positioned well for future growth and remains an appealing investment opportunity.