Leonardo DRS, Inc. (DRS) P/E Ratio History
ExpensiveTrading at 41.4x vs 5Y avg 24.4x · 90th percentile · Material premium to history · Data 2020–2026
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P/E Ratio Analysis
As of July 6, 2026, Leonardo DRS, Inc. (DRS) trades at a price-to-earnings ratio of 41.4x, with a stock price of $42.69 and trailing twelve-month earnings per share of $1.08.
The current P/E is 70% above its 5-year average of 24.4x. Over the past five years, DRS's P/E has ranged from a low of 3.6x to a high of 50.0x, placing the current valuation at the 90th percentile of its historical range.
Compared to the Industrials sector median P/E of 25.9x, DRS trades at a 60% premium to its sector peers. The sector includes 400 companies with P/E ratios ranging from 0.0x to 188.9x.
The PEG ratio of 3.30 (P/E divided by 29% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, DRS commands a significant premium over the S&P 500 median P/E of 25.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our DRS DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
DRS Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
DRS P/E vs Peers
Defense Electronics and Sensors peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $10B | 408.0 | - | +18% | |
| $50B | 73.4 | 4.47 | +34% | |
| $28B | 58.9 | 2.70 | +22% | |
| $895M | 8.1Lowest | - | -32% | |
| $55B | 34.3 | 3.27 | +8% | |
| $74B | 17.9 | 2.02 | +3% | |
| $258B | 38.7 | - | +40%Best | |
| $7B | 8.7 | 0.90 | -5% | |
| $13B | 9.3 | 0.45Best | +21% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
DRS Historical P/E Data (2020–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $44.52 | $1.08 | 41.2x | +75% |
| FY2025 Q4 | Dec 31 2025 | $34.09 | $1.04 | 32.8x | +39% |
| FY2025 Q3 | - | $45.40 | $0.99 | 45.9x | +95% |
| FY2025 Q2 | Jun 30 2025 | $46.48 | $0.93 | 50.0x | +112% |
| FY2025 Q1 | Mar 31 2025 | $32.88 | $0.87 | 37.8x | +61% |
| FY2024 Q4 | - | $32.31 | $0.79 | 40.9x | +74% |
| FY2024 Q3 | Sep 30 2024 | $28.22 | $0.74 | 38.1x | +62% |
| FY2024 Q2 | Jun 30 2024 | $25.51 | $0.71 | 35.9x | +53% |
| FY2024 Q1 | Mar 31 2024 | $22.09 | $0.70 | 31.6x | +34% |
| FY2023 Q4 | Dec 31 2023 | $20.04 | $0.64 | 31.5x | +34% |
| FY2023 Q3 | Sep 30 2023 | $16.70 | $0.64 | 26.3x | +12% |
| FY2023 Q2 | Jun 30 2023 | $17.34 | $2.38 | 7.3x | -69% |
| FY2023 Q1 | Mar 31 2023 | $12.97 | $2.37 | 5.5x | -77% |
| FY2022 Q4 | Dec 31 2022 | $12.78 | $2.57 | 5.0x | -79% |
| FY2022 Q3 | Sep 30 2022 | $9.63 | $2.69 | 3.6x | -85% |
| FY2022 Q2 | - | $9.24 | $1.01 | 9.1x | -61% |
| FY2022 Q1 | - | $13.93 | $1.11 | 12.5x | -47% |
| FY2021 Q4 | Dec 31 2021 | $9.42 | $1.06 | 8.9x | -62% |
| FY2021 Q3 | - | $10.64 | $0.98 | 10.9x | -54% |
| FY2021 Q2 | Jun 30 2021 | $12.18 | $0.87 | 14.0x | -41% |
| FY2021 Q1 | Mar 31 2021 | $12.01 | $0.78 | 15.4x | -35% |
| FY2020 Q4 | - | $9.75 | $0.71 | 13.7x | -42% |
Average P/E for displayed period: 23.5x
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
6+ years return with dividends reinvested.
DCA Calculator
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Peer Comparison
Compare growth, multiples, and margins vs sector.
DRS — Frequently Asked Questions
Quick answers to the most common questions about buying DRS stock.
What is DRS's P/E ratio?
Leonardo DRS, Inc. (DRS) trailing twelve-month P/E ratio is 41.4x, based on TTM diluted EPS of $1.08. The 5-year average P/E is 24.4x and the historical range spans 3.6x to 50.0x.
Is DRS stock overvalued or undervalued?
DRS trades at 41.4x P/E, above its 5-year average of 24.4x. The 90th percentile ranking within the 3.6x–50.0x historical range indicates a premium to historical valuation.
Is DRS stock expensive?
Yes, DRS is expensive relative to its own history. The current P/E of 41.4x is above the 5-year average of 24.4x and also above the Industrials sector median of 25.9x. The stock sits at the 90th percentile of its 5-year valuation range.
What is DRS's historical P/E range?
Over the past 5 years, DRS's P/E ratio has ranged from 3.6x to 50.0x, with a median of 31.5x and an average of 24.4x. The current P/E of 41.4x places the stock at the 90th percentile of this range. Full historical data spans 2020–2026.
How does DRS's P/E compare to the S&P 500?
DRS trades at 41.4x P/E versus the S&P 500 median of 25.4x. The 63% premium to the market typically reflects higher expected earnings growth or quality.
How does DRS's valuation compare to Industrials peers?
Leonardo DRS, Inc. P/E of 41.4x compares to the Industrials sector median of 25.9x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is DRS's PEG ratio?
DRS PEG ratio is 3.30, based on a P/E of 41.4x and EPS growth of 28.7%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is DRS's earnings yield?
DRS earnings yield is 2.41%, the inverse of its 41.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.