Leonardo DRS, Inc.
Leonardo DRS, Inc. provides advanced defense technology to U.S. national security customers and allied defense forces worldwide. We specialize in the design, development, manufacture, and integration of advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions.
$35.42
-$0.05 (-0.14%)
EOD Oct 16, 2026
Operating margin is thin at 9.54%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 12.8%, still solid.
At 30x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
29.8x earnings, 26.0x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$3.78B
▲ +12.8% YoY
Net Income (TTM)
$322M
▲ +30.5% YoY
Op. Margin
10.53%
▲ +0.5pp YoY
ROIC
10.56%
▲ +1.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$363M
▲ +22.0% YoY
Op. Cash Flow (TTM)
$501M
▲ +35.1% YoY
Net Debt
-$3M
Net Cash Position
Cash & Equiv.
$270M
5Y CAGR: +5.6%
5Y CAGR: +26.9%
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SourceComputed from the 10-Q filed 29 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 3 Aug 2026. How this is calculated.
Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Leonardo DRS (DRS) overvalued?
At a P/E of 29.8 and a price-to-free-cash-flow of 26.0, Leonardo DRS (DRS) trades below a two-stage DCF intrinsic value of about $68.15 per share, so at $35.42 the stock looks undervalued (92.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Leonardo DRS scores 57/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Leonardo DRS's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $68.15 per share for DRS, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $51.12. At today's $35.42, that puts the stock about 92.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Leonardo DRS a high-quality business?+
Leonardo DRS scores 57 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 10.5% operating margin and a 10.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Leonardo DRS a good stock to buy right now?+
That depends on valuation and quality together, not either alone. DRS currently trades below its estimated intrinsic value and scores 57/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.