Is Leonardo DRS, Inc. overvalued or undervalued?

As of 1 May 2025, Leonardo DRS, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key financial ratios include a P/E ratio of 49, an EV to EBITDA of 28.96, and a PEG ratio of 1.96, which suggest that while the company is generating returns, it may not be as compelling compared to its peers.
In comparison to its peers, Leidos Holdings, Inc. has a significantly lower P/E ratio of 14.21, while Curtiss-Wright Corp. has a P/E of 49.49, indicating that Leonardo DRS is positioned in the higher valuation spectrum among its competitors. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 38.44% compared to the index's 2.44%, reinforcing the notion that while it is fairly valued, it has been a strong performer in the market.