Leonardo DRS, Inc. (DRS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-7.0%

$34.16

vs $36.75 price

Levered DCF

$19.60

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.89

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.47×	39.89×	31.31×	6.8×	8.89×	17.11×	9.98×	-37.39×
P/B	3.31×	3.34×	2.26×	1.29×	0.86×	1.02×	0.74×	0×
P/S	2.48×	2.64×	1.86×	1.02×	0.47×	0.53×	0.28×	0.16×
EV / EBITDA	20.29×	22.31×	16.9×	4.69×	5.52×	8.43×	7.05×	0×
Gross margin	23.8%	22.8%	22.9%	21.4%	19.0%	17.8%	16.9%	17.7%
Operating margin	9.5%	9.1%	8.2%	20.8%	8.2%	6.5%	6.0%	1.9%
Net margin	7.6%	6.6%	5.9%	15.0%	5.3%	3.1%	2.8%	-0.4%
Current ratio	1.89×	1.94×	1.78×	1.64×	1.4×	1.3×	1.25×	0×
Debt / equity	0.17×	0.18×	0.21×	0.23×	0.31×	0.37×	0.81×	0×
Interest coverage	43.5×	13.95×	6.42×	16.5×	6.74×	2.83×	2.51×	0.78×
Dividend yield	1.1%	0.0%	0.0%	14.4%	0.0%	0.0%	0.0%	0.0%
Payout ratio	34.5%	0.0%	0.0%	97.8%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.2%	8.3%	7.2%	19.0%	9.7%	6.0%	7.4%	0.0%
Return on invested capital	8.4%	7.6%	6.9%	16.1%	8.5%	6.7%	6.6%	0.0%
Return on assets	6.0%	5.1%	4.3%	11.0%	5.0%	2.9%	2.6%	0.0%
Free cash flow yield	2.5%	2.2%	2.8%	-1.2%	8.6%	4.7%	13.6%	17.4%
Earnings yield	3.1%	2.5%	3.2%	14.7%	11.3%	5.8%	10.0%	-2.7%
Enterprise value	$8.9B	$8.4B	$5.3B	$2.9B	$1.6B	$1.9B	$1.5B	$0
Net debt / EBITDA	-0.41×	-0.37×	0.1×	0.29×	0.85×	2.05×	3.49×	0×
Cash conversion cycle (days)	127	117	125	117	71	80	68	0