Is Leonardo DRS, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Leonardo DRS, Inc. has moved from very attractive to attractive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 49, a Price to Book Value of 4.59, and an EV to EBITDA of 28.96, which are significantly higher than its peers such as Textron, Inc. with a P/E of 17.37 and Huntington Ingalls Industries, Inc. with a P/E of 27.01.
Despite the high valuation ratios, Leonardo DRS, Inc. has shown strong performance with a year-to-date return of 21.76% compared to the S&P 500's 13.30%, and an impressive 3-year return of 280.46% against the S&P 500's 81.19%. This performance may suggest that investors are willing to pay a premium for the stock, but the valuation metrics indicate that it is currently overvalued.