Latest Ratios: P/E Ratio 42.4x · EV/EBITDA 26.0x · ROE 10.5%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.7B | $9.2B | $8.6B | $5.3B | $2.7B | $1.4B | $1.5B | $753M | $344M | $100M | $29M |
| Enterprise Value | $11.5B | $9.0B | $8.5B | $5.3B | $2.9B | $1.6B | $1.9B | $1.5B | $1.9B | $1.8B | $1.9B |
| P/E Ratio → | 42.45 | 33.10 | 40.39 | 31.31 | 6.80 | 8.89 | 17.11 | 9.98 | 2.07 | 0.79 | 0.36 |
| P/S Ratio | 3.20 | 2.51 | 2.67 | 1.87 | 1.02 | 0.47 | 0.53 | 0.28 | 0.10 | 0.04 | 0.02 |
| P/B Ratio | 4.30 | 3.36 | 3.38 | 2.28 | 1.29 | 0.86 | 1.02 | 0.74 | 0.20 | 0.07 | 0.02 |
| P/FCF | 51.38 | 40.37 | 46.50 | 36.49 | — | 11.58 | 21.17 | 7.38 | 2.45 | 0.72 | 0.26 |
| P/OCF | 31.87 | 25.04 | 31.92 | 25.81 | 83.26 | 7.67 | 11.68 | 4.79 | 1.63 | 0.51 | 0.19 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.46 | 2.63 | 1.88 | 1.09 | 0.56 | 0.69 | 0.55 | 0.57 | 0.64 | 1.07 |
| EV / EBITDA | 26.05 | 20.38 | 22.16 | 16.84 | 4.68 | 5.50 | 8.25 | 6.96 | 4.31 | 4.62 | 7.70 |
| EV / EBIT | 33.01 | 25.82 | 29.86 | 23.34 | 5.24 | 6.88 | 10.96 | 9.30 | 5.23 | 5.81 | 9.39 |
| EV / FCF | — | 39.59 | 45.75 | 36.69 | — | 13.69 | 27.96 | 14.59 | 13.49 | 12.86 | 16.35 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.2% | 23.2% | 22.8% | 22.9% | 21.4% | 19.0% | 17.8% | 16.9% | 12.9% | 12.8% | 13.8% |
| Operating Margin | 9.5% | 9.5% | 9.1% | 8.2% | 20.8% | 8.2% | 6.5% | 6.0% | 10.9% | 11.0% | 11.1% |
| Net Profit Margin | 7.6% | 7.6% | 6.6% | 5.9% | 15.0% | 5.3% | 3.1% | 2.8% | 5.0% | 4.5% | 4.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 8.7% | 7.5% | 21.8% | 10.2% | 7.0% | 5.6% | 10.4% | 8.9% | 6.0% |
| ROA | 6.3% | 6.3% | 5.3% | 4.4% | 12.0% | 5.1% | 2.9% | 2.1% | 3.9% | 3.1% | 2.0% |
| ROIC | 10.5% | 10.5% | 9.2% | 7.4% | 20.3% | 9.5% | 7.4% | 4.9% | 8.4% | 7.3% | 4.5% |
| ROCE | 10.8% | 10.8% | 9.9% | 8.4% | 23.8% | 11.6% | 9.4% | 6.1% | 10.5% | 9.2% | 5.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.17 | 0.17 | 0.18 | 0.21 | 0.23 | 0.31 | 0.37 | 0.81 | 0.97 | 1.19 | 1.36 |
| Debt / EBITDA | 1.07 | 1.07 | 1.19 | 1.57 | 0.78 | 1.67 | 2.26 | 3.84 | 3.72 | 4.61 | 7.59 |
| Net Debt / Equity | — | -0.06 | -0.05 | 0.01 | 0.09 | 0.16 | 0.33 | 0.72 | 0.92 | 1.13 | 1.36 |
| Net Debt / EBITDA | -0.40 | -0.40 | -0.36 | 0.09 | 0.29 | 0.85 | 2.00 | 3.44 | 3.53 | 4.36 | 7.58 |
| Debt / FCF | — | -0.78 | -0.75 | 0.21 | — | 2.12 | 6.80 | 7.22 | 11.04 | 12.15 | 16.09 |
| Interest Coverage | 43.50 | 43.50 | 13.57 | 6.33 | 16.44 | 6.71 | 2.75 | 2.46 | 3.28 | 2.57 | 3.14 |
Net cash position: cash ($647M) exceeds total debt ($470M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.89 | 1.89 | 1.94 | 1.78 | 1.64 | 1.40 | 1.30 | 1.25 | 1.41 | 1.46 | 1.29 |
| Quick Ratio | 1.60 | 1.60 | 1.62 | 1.47 | 1.33 | 1.20 | 1.04 | 1.04 | 0.90 | 0.98 | 0.81 |
| Cash Ratio | 0.53 | 0.53 | 0.54 | 0.43 | 0.29 | 0.24 | 0.06 | 0.08 | 0.10 | 0.12 | 0.00 |
| Asset Turnover | — | 0.79 | 0.77 | 0.72 | 0.73 | 0.94 | 0.94 | 0.94 | 0.76 | 0.67 | 0.43 |
| Inventory Turnover | 7.96 | 7.96 | 6.98 | 6.62 | 6.64 | 11.38 | 9.25 | 10.79 | 6.55 | 6.69 | 4.51 |
| Days Sales Outstanding | — | 126.57 | 126.97 | 136.78 | 140.69 | 113.98 | 116.81 | 121.31 | 63.59 | 69.25 | 91.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.0% | — | — | 14.4% | — | — | — | 1.4% | 5.0% | 12.6% |
| Payout Ratio | 34.5% | 34.5% | — | — | 97.8% | — | — | — | 3.0% | 3.9% | 4.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 3.0% | 2.5% | 3.2% | 14.7% | 11.3% | 5.8% | 10.0% | 48.2% | 127.1% | 277.6% |
| FCF Yield | 1.9% | 2.5% | 2.2% | 2.7% | — | 8.6% | 4.7% | 13.6% | 40.7% | 139.5% | 387.9% |
| Buyback Yield | 0.3% | 0.4% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.1% | 1.4% | 0.2% | 0.0% | 14.4% | 0.0% | 0.0% | 0.0% | 1.4% | 5.0% | 12.6% |
| Shares Outstanding | — | $269M | $268M | $264M | $215M | $145M | $150M | $145M | $83M | $20M | $5M |
Contract-based revenue volatility
Based on current market data, DRS trades at a forward P/E of 32.93, which appears to price in significant future earnings expansion relative to its historical performance and the broader defense sector's typical valuation multiples for mid-tier subsystem providers.
The elevated P/E and PEG ratio of 3.28 suggest that investors are paying a premium for the company's role in high-priority naval programs like the Columbia-class submarine. This valuation warrants caution, as it implies that any failure to meet milestone-based earnings targets could lead to a sharp contraction in multiple expansion.
As reported in financial statements, the company's ROIC has fluctuated between 1.3% and 3.5% over the last ten quarters, indicating that Leonardo DRS is currently struggling to generate returns on invested capital that exceed the typical cost of capital for industrial defense firms.
The low ROIC trend suggests that the company's heavy investment in specialized testing facilities and R&D has yet to translate into superior capital efficiency. Investors should monitor whether the integration of RADA's higher-margin radar technology can drive a structural improvement in these returns over the coming fiscal years.
According to recent quarterly filings, the company's cash conversion cycle has remained elevated, peaking at 164 days in 2024Q2, which highlights the significant working capital drag inherent in managing long-cycle, milestone-based defense contracts compared to more agile commercial peers.
The high DSO, which reached 149 days in early 2024, suggests that the company's cash flow is heavily dependent on the timing of government payments and contract milestones. This inefficiency in converting revenue to cash necessitates a cautious view on the company's ability to self-fund aggressive growth initiatives.
Based on reported figures, Leonardo DRS maintains a robust balance sheet with a debt-to-equity ratio of 0.05 as of 2026Q1, providing a significant buffer against interest rate volatility and offering substantial flexibility for future strategic capital allocation or internal investment.
This minimal debt profile is a standout feature compared to more levered defense peers, effectively insulating the company from the rising cost of debt. The low leverage appears to be a deliberate strategic choice, likely intended to preserve operational agility while navigating the lumpy cash flow cycles of the defense industry.
The P/E ratio is frequently misapplied to Leonardo DRS, as it fails to account for the lumpy, milestone-driven nature of defense accounting which can artificially depress or inflate earnings in any given quarter, obscuring the underlying cash-generative capacity of the business.
Investors should instead focus on EV/EBITDA or free cash flow yield, which better normalize for the non-cash charges and working capital swings inherent in percentage-of-completion accounting. Relying solely on P/E risks misinterpreting temporary accounting adjustments as permanent shifts in the company's fundamental earning power.
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying DRS stock.
Leonardo DRS, Inc.'s current P/E ratio is 42.4x. The historical average is 15.1x. This places it at the 100th percentile of its historical range.
Leonardo DRS, Inc.'s current EV/EBITDA is 26.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.
Leonardo DRS, Inc.'s return on equity (ROE) is 10.5%. The historical average is 9.7%.
Based on historical data, Leonardo DRS, Inc. is trading at a P/E of 42.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Leonardo DRS, Inc.'s current dividend yield is 0.82% with a payout ratio of 34.5%.
Leonardo DRS, Inc. has 23.2% gross margin and 9.5% operating margin.
Leonardo DRS, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.