Leonardo DRS, Inc. (DRS) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Leonardo DRS, Inc. stock $21.89, price $33.00, that is 33.7% below the price, quality 64 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range $7.65 – $49.69 · fair‑value band $14.46 – $27.36 · the $33.00 price screens above the $21.89 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 1, 2026.
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Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments.
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The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing.
This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications.
The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment.
Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC
Stock analysis
Leonardo DRS, Inc. (DRS) currently trades at $33.00, while our model-based Fair Value estimate is $21.89, 34% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $26.42 per share, and 1 of the 26 models we run sit above the $33.00 price.
Bear case: the Dividend Discount group reads lowest at $6.57, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $14.46 (bear) to $27.36 (bull), the price of $33.00 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Leonardo DRS, Inc. Common Stock reported revenue of $3.6B in FY2025 versus $2.9B in FY2021, a compound +6.1%/yr. Reported net income was $278M in FY2025, compounding +15.9%/yr from FY2021.
Key figures
Market cap $8.8B Mid · P/E ratio 27.7 · P/S ratio 2.27 · EPS (TTM) $1.19 · Dividend yield 0.3% · Net margin 9.4% · Return on equity 13.2% · Return on assets (EBIT) 8.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (medium confidence).
What moves the price
The share trades about 34% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −27% fair-value upside, at −34%, DRS screens richer than that median.
Fair Value models
Bear$14.46Fair Value $21.89Bull$27.36
Price $33.00 · Downside -33.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.9342 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $1.1M, on May 19, 2026. Over the same period, 6 people sold shares worth $5.0M.
SaleMichael DippoldEVP and CFO7× since Dec 1, 2025: 82,235 shares, avg. $40.31$3.3MNov 2, 202610b5-1 plan
SaleMark DorfmanEVP, GC and Secretary6× since Dec 1, 2025: 39,200 shares, avg. $41.03$1.6MSep 4, 202610b5-1 plan
SaleJason RinskyEVP Chief Tax and Treasury3× since Jun 3, 2026: 11,594 shares, avg. $46.02$533,517Aug 4, 202610b5-1 plan
SaleJohn BaylounyPresident and CEO, Director36,471 shares at $45.67$1.7MJun 18, 202610b5-1 plan
SaleSally WallaceEVP, Chief Operating Officer3× since Jan 5, 2026: 31,560 shares, avg. $46.04$1.5MJun 11, 202610b5-1 plan
SalePamela MorrowSVP and Controller2× since Mar 3, 2026: 23,545 shares, avg. $45.17$1.1MMay 27, 2026
BuyReuben Jeffery IIIDirector25,000 shares at $42.77$1.1MMay 19, 2026
SaleGeorge CaseyDirector1,500 shares at $45.14$67,710Mar 4, 2026
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+12.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.6%
Start year 2020 (pandemic)
Revenue growth 20 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+10.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.6%
Dividend (yield on the price)0.3%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 10%
⚠ Revenue per share shrinking 12.7%/yr over ~18Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+16.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +13.7% a year for the price and +4.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The new UK manufacturing hub supports European access for tactical radars, yet limited evidence and government customer influence keep durable signals thin overall.
Main risk: Government customer influence limits power and would hit demand stability through budget dependence for radar and defense systems.
Leonardo DRS is opening a UK subsidiary with local manufacturing for its tactical radars. The site will support counter-drone, air defense and active protection needs while serving as a European hub. Our models see the stock as overvalued. Does this manufacturing footprint deliver more durable customer access than recent sector rotation suggests?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Aerospace & Defense · 241 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score64 · Above median
Fair Value upside−33.7% · Above median
Profitability
Return on equity (12 months)13.2% · Above median
Return on assets6.0% · Above median
Net margin (12 months)9.4% · Above median
Operating margin (12 months)10.9% · Above median
Growth and dividend
Revenue growth (quarter YoY)11.0% · Below median
Dividend yield (12 months)0.3% · Bottom 25%
Balance sheet
Debt / equity0.12× · Below median
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
P/E (12 months)27.7× · Cheaper than median
P/B3.22× · Pricier than median
P/S (12 months)2.27× · Cheaper than median
Price / free cash flow38.8× · Pricier than median
EV/EBITDA16.2× · Cheaper than median
PEG2.26× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)55· sector 64
PAST (return on equity)53· sector 40
HEALTH (low debt)94· sector 94
DIVIDEND (yield)5· sector 18
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Leonardo DRS, Inc. Common Stock Fair Value". https://www.fairvalue-calculator.com/stock/DRS
Frequently asked questions
Is Leonardo DRS, Inc. (DRS) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of $21.89 versus a price of $33.00, about 34% lower (overvalued).
What is the fair value of DRS?
Our model-based fair value for Leonardo DRS, Inc. Common Stock is $21.89 (as of Nov 1, 2026), built from audited fundamentals. The current price: $33.00.
What is the quality score of DRS?
Leonardo DRS, Inc. Common Stock has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Leonardo DRS, Inc. (DRS)?
Our model-based price target is the fair value of $21.89 (as of Nov 1, 2026) from 26 valuation models. Cautious scenario $14.46, optimistic scenario $27.36. It is a calculation from audited fundamentals, not an analyst target.
What is the Leonardo DRS, Inc. Common Stock stock forecast for 2026?
Our models put fair value at $21.89, about 34% lower versus a price of $33.00 (overvalued). Cautious scenario $14.46, optimistic scenario $27.36. The calculation is refreshed regularly with new filings.
What is the revenue of Leonardo DRS, Inc. (DRS)?
Leonardo DRS, Inc. Common Stock reported trailing-twelve-month revenue of about $3.9B (latest available figure, as of Nov 1, 2026).
Does Leonardo DRS, Inc. Common Stock pay a dividend?
Leonardo DRS, Inc. Common Stock currently shows a dividend yield of 0.27% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Leonardo DRS, Inc. (DRS)?
For today's price to be fair in a discounted-cash-flow model, Leonardo DRS, Inc. Common Stock would have to grow free cash flow by +16.4 % per year for five years (discount rate 8.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.6 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of DRS use?
Our models discount Leonardo DRS, Inc. Common Stock at 8.1 %: a base by market capitalisation (large), damped by beta 0.16, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Leonardo DRS, Inc. Common Stock that is +16.4 % per year a year over ten years, using the same discount rate (8.1 %) and the same formula as our fair value.
How much growth has Leonardo DRS, Inc. (DRS) delivered so far?
Over the past 5 years revenue at Leonardo DRS, Inc. Common Stock grew +5.6 % a year. The price currently implies +16.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Leonardo DRS, Inc. (DRS) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Leonardo DRS, Inc. Common Stock (+16.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Leonardo DRS, Inc. (DRS)?
The free-cash-flow yield on the price is 2.56 %: that much free cash flow Leonardo DRS, Inc. Common Stock produces per unit of market value. When it exceeds the discount rate of our models (8.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Leonardo DRS, Inc. (DRS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Leonardo DRS, Inc. Common Stock it is $21.89 per share (as of Nov 1, 2026), against a price of $33.00. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Leonardo DRS, Inc. Common Stock stock overvalued or undervalued in 2026?
As of Nov 1, 2026, DRS trades above its calculated fair value: price $33.00, fair value $21.89, a gap of about −34% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DRS?
No. The price is what the market pays today ($33.00); the fair value is what the company's own numbers justify ($21.89). For Leonardo DRS, Inc. Common Stock the two are $11.11 per share apart. That gap is exactly why we show both numbers side by side.
How much is Leonardo DRS, Inc. Common Stock worth?
The market values Leonardo DRS, Inc. Common Stock at about $8.8B (market capitalisation, as of Nov 1, 2026). Per share that is $33.00; our models calculate a fair value of $21.89 per share.
What do the bullish and bearish scenarios say about DRS?
Our models span a range for Leonardo DRS, Inc. Common Stock: cautious scenario $14.46, base $21.89, optimistic $27.36 per share (as of Nov 1, 2026, price $33.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DRS?
Leonardo DRS, Inc. Common Stock trades at a price-to-earnings ratio of 27.7 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $21.89 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings, 5 of the years ex one-offs: 23.5. Other multiples: PEG 2.3, P/B 3.2, P/S 2.3, EV/EBITDA 16.2.
What is the PEG ratio of DRS?
The PEG ratio of Leonardo DRS, Inc. Common Stock is 2.26 (P/E divided by earnings growth, as of Nov 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Leonardo DRS, Inc. (DRS)?
Balance-sheet figures for Leonardo DRS, Inc. Common Stock (as of Nov 1, 2026): return on equity 13.2%, debt of 0.12 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is DRS from its 52-week high?
Leonardo DRS, Inc. Common Stock trades at $33.00, about 34% below its 52-week high of $49.69 and 2% above the low of $32.42 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $21.89 is for.
Which stocks are comparable to Leonardo DRS, Inc. Common Stock?
From the same area (Industrials) we also value General Electric Company, RTX Corporation, Airbus SE, Lockheed Martin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Leonardo DRS, Inc. Common Stock stock attractive at the current price?
The data as of Nov 1, 2026: price $33.00, calculated fair value $21.89 (−34%), Quality Score 64/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DRS calculated?
We run Leonardo DRS, Inc. Common Stock through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $21.89, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Leonardo DRS, Inc. Common Stock itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Leonardo DRS, Inc. (DRS)?
The closing price on Nov 5, 2026 was $33.00. Our model-based fair value is $21.89, about 34% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Leonardo DRS, Inc. Common Stock right now?
The price sits above even our optimistic bull case ($27.36). The favourable scenario is already priced in. Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($14.46 to $27.36) leaves room in how you read the outcome.
Key figures of Leonardo DRS, Inc. Common Stock
How large is the market capitalisation of Leonardo DRS, Inc. (DRS)?
The market capitalisation of Leonardo DRS, Inc. Common Stock is $8.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Leonardo DRS, Inc. (DRS)?
The price-to-sales ratio of Leonardo DRS, Inc. Common Stock is 2.27 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Leonardo DRS, Inc. (DRS)?
Earnings per share at Leonardo DRS, Inc. Common Stock are $1.19 (price ÷ EPS = P/E 27.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Leonardo DRS, Inc. (DRS)?
The dividend yield of Leonardo DRS, Inc. Common Stock is 0.3% (payout 7.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Leonardo DRS, Inc. (DRS)?
The net margin of Leonardo DRS, Inc. Common Stock is 9.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Leonardo DRS, Inc. (DRS)?
The return on equity (ROE) of Leonardo DRS, Inc. Common Stock is 13.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Leonardo DRS, Inc. (DRS)?
On an EBIT basis the return on assets of Leonardo DRS, Inc. Common Stock is 8.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Leonardo DRS, Inc. (DRS)?
The operating margin of Leonardo DRS, Inc. Common Stock is 10.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Leonardo DRS, Inc. (DRS)?
Revenue at Leonardo DRS, Inc. Common Stock is growing +11.0% versus a year earlier (3y avg +10.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Leonardo DRS, Inc. (DRS)?
Earnings per share at Leonardo DRS, Inc. Common Stock are growing +65.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Leonardo DRS, Inc. (DRS) hold?
Leonardo DRS, Inc. Common Stock holds more cash than debt, $177M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 1, 2026