Is Leonardo DRS, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Leonardo DRS, 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 49, which is significantly higher than its peers like Textron, Inc. at 17.37 and Huntington Ingalls Industries, Inc. at 27.01. Additionally, the EV to EBITDA ratio stands at 28.96, while the PEG ratio is 1.96, suggesting that the stock may be priced favorably relative to its growth potential.
In comparison to its peers, Leonardo DRS, Inc. has a higher valuation profile, with its P/E ratio being notably elevated compared to Textron and Crane Co., which have ratios of 17.37 and 35.01, respectively. The company has also outperformed the S&P 500, with a year-to-date return of 32.71% compared to the index's 13.31%, and a remarkable 5-year return of 598.37% versus 100.77% for the S&P 500. This strong performance reinforces the attractiveness of the stock in the current market context.