Is Leidos Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Leidos Holdings, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued based on several key metrics, including a P/E ratio of 14, an EV to EBITDA of 10.49, and a PEG ratio of 0.40, which suggests strong growth potential relative to its price. In comparison, Teledyne Technologies, Inc. has a significantly higher P/E ratio of 29.71, highlighting Leidos' more favorable valuation within the Aerospace & Defense industry.
Leidos has demonstrated robust performance, with a year-to-date return of 28.08%, significantly outperforming the S&P 500's 13.30% during the same period. This performance, combined with strong ratios such as a ROE of 31.80% and a ROCE of 22.80%, reinforces the attractiveness of the stock, suggesting that it is well-positioned for continued growth.