Is Leidos Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Leidos Holdings, Inc. has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, supported by a P/E ratio of 14, a PEG ratio of 0.40, and an EV to EBITDA ratio of 10.49. Compared to peers, Leidos has a lower P/E ratio than Teledyne Technologies, Inc., which stands at 29.71, highlighting its relative attractiveness in the aerospace and defense sector.
In terms of performance, Leidos has outperformed the S&P 500 across multiple time frames, with a year-to-date return of 29.91% compared to the S&P 500's 12.22%. This strong performance reinforces the notion that the stock may be undervalued, as it continues to deliver substantial returns relative to the broader market.