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 ratio of 10.49, all of which suggest that the stock is trading at a discount relative to its earnings growth potential and industry benchmarks.
In comparison to peers, Leidos Holdings has a lower P/E ratio than Teledyne Technologies, which stands at 29.71, and a more favorable EV to EBITDA ratio compared to its industry. While Leidos has underperformed the S&P 500 in the short term with a 1-week return of -1.87% versus 1.70%, it has significantly outperformed over longer periods, achieving a 3-year return of 102.47% compared to the S&P 500's 81.19%. This performance reinforces the attractiveness of Leidos Holdings as a potential investment opportunity.