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 to be undervalued, supported by a P/E ratio of 14, a PEG ratio of 0.40, and an EV to EBITDA of 10.49, all of which suggest that the stock is trading at a discount relative to its earnings growth potential. In comparison, Teledyne Technologies, Inc. has a significantly higher P/E ratio of 29.71, further reinforcing Leidos' attractive valuation.
Leidos' return performance has been mixed against the S&P 500, with a year-to-date return of 28.08% compared to the S&P's 13.30%, indicating that the stock has outperformed the benchmark this year. However, over longer periods, such as the last 10 years, Leidos has lagged behind the S&P 500's 227.77% return, suggesting potential for growth as it adjusts its valuation.