Is Leonardo DRS, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Leonardo DRS, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 49, a Price to Book Value of 4.59, and an EV to EBITDA of 28.96. In comparison to peers, Huntington Ingalls Industries, Inc. has a P/E of 27.01, while Crane Co. shows a P/E of 35.01, suggesting that Leonardo DRS is priced at a premium relative to its industry counterparts.
Despite its fair valuation, Leonardo DRS has demonstrated strong performance, with a year-to-date return of 33.80%, significantly outperforming the S&P 500's return of 11.41% over the same period. This performance, along with a robust dividend yield of 22.74%, may appeal to investors, but the high valuation ratios indicate that caution is warranted.