Latest Ratios: P/E Ratio 9.8x · EV/EBITDA 7.6x · ROE 30.9%. (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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.7B | $24.3B | $20.0B | $14.9B | $14.5B | $12.7B | $15.1B | $14.2B | $8.1B | $9.9B | $5.3B |
| Enterprise Value | $18.4B | $29.0B | $24.4B | $19.4B | $19.5B | $17.7B | $19.9B | $16.8B | $10.9B | $12.7B | $8.3B |
| P/E Ratio → | 9.75 | 16.48 | 15.96 | 75.17 | 21.21 | 16.87 | 24.11 | 21.28 | 13.87 | 27.13 | 21.76 |
| P/S Ratio | 0.80 | 1.41 | 1.20 | 0.97 | 1.01 | 0.93 | 1.23 | 1.28 | 0.79 | 0.98 | 0.76 |
| P/B Ratio | 2.90 | 4.90 | 4.49 | 3.51 | 3.33 | 2.93 | 3.91 | 4.15 | 2.44 | 2.94 | 1.69 |
| P/FCF | 8.40 | 14.95 | 16.10 | 15.59 | 16.94 | 13.71 | 13.15 | 16.30 | 11.61 | 22.35 | 12.75 |
| P/OCF | 7.80 | 13.88 | 14.38 | 12.82 | 14.72 | 12.33 | 11.35 | 14.31 | 10.50 | 18.90 | 11.93 |
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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.69 | 1.46 | 1.25 | 1.35 | 1.28 | 1.62 | 1.52 | 1.07 | 1.25 | 1.17 |
| EV / EBITDA | 7.64 | 12.06 | 11.51 | 20.33 | 13.72 | 11.95 | 15.56 | 14.69 | 10.80 | 14.19 | 15.34 |
| EV / EBIT | 8.72 | 13.78 | 13.30 | 31.48 | 17.96 | 15.34 | 20.69 | 16.62 | 14.39 | 23.47 | 19.97 |
| EV / FCF | — | 17.86 | 19.60 | 20.21 | 22.74 | 19.04 | 17.31 | 19.33 | 15.63 | 28.53 | 19.82 |
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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.7% | 17.7% | 16.8% | 14.5% | 14.5% | 14.7% | 14.1% | 14.0% | 14.8% | 12.3% | 12.1% |
| Operating Margin | 12.3% | 12.3% | 11.0% | 4.0% | 7.6% | 8.4% | 8.1% | 8.2% | 7.3% | 5.5% | 5.9% |
| Net Profit Margin | 8.5% | 8.5% | 7.5% | 1.3% | 4.8% | 5.5% | 5.1% | 6.0% | 5.7% | 3.6% | 3.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.9% | 30.9% | 28.8% | 4.6% | 15.8% | 18.3% | 17.2% | 19.8% | 17.4% | 11.2% | 11.6% |
| ROA | 10.9% | 10.9% | 9.7% | 1.5% | 5.2% | 5.8% | 5.7% | 7.4% | 6.5% | 4.0% | 3.9% |
| ROIC | 17.1% | 17.1% | 15.7% | 5.2% | 8.8% | 9.6% | 10.2% | 11.2% | 9.2% | 6.9% | 8.2% |
| ROCE | 21.0% | 21.0% | 19.1% | 6.6% | 11.4% | 11.7% | 12.0% | 13.3% | 11.1% | 8.0% | 8.8% |
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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.19 | 1.19 | 1.19 | 1.22 | 1.26 | 1.30 | 1.37 | 0.97 | 0.94 | 0.93 | 1.06 |
| Debt / EBITDA | 2.46 | 2.46 | 2.50 | 5.46 | 3.86 | 3.84 | 4.15 | 2.89 | 3.11 | 3.51 | 6.17 |
| Net Debt / Equity | — | 0.95 | 0.97 | 1.04 | 1.14 | 1.14 | 1.24 | 0.77 | 0.84 | 0.81 | 0.94 |
| Net Debt / EBITDA | 1.96 | 1.96 | 2.05 | 4.64 | 3.50 | 3.34 | 3.74 | 2.31 | 2.78 | 3.08 | 5.47 |
| Debt / FCF | — | 2.91 | 3.50 | 4.61 | 5.80 | 5.33 | 4.16 | 3.04 | 4.02 | 6.19 | 7.07 |
| Interest Coverage | 10.38 | 10.38 | 9.49 | 2.90 | 5.45 | 6.26 | 5.29 | 6.89 | 5.21 | 3.66 | 4.31 |
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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.70 | 1.70 | 1.21 | 1.34 | 0.92 | 1.12 | 1.15 | 1.21 | 1.38 | 1.21 | 1.18 |
| Quick Ratio | 1.58 | 1.58 | 1.13 | 1.24 | 0.85 | 1.04 | 1.05 | 1.17 | 1.38 | 1.18 | 1.15 |
| Cash Ratio | 0.43 | 0.43 | 0.26 | 0.26 | 0.13 | 0.23 | 0.18 | 0.29 | 0.16 | 0.18 | 0.19 |
| Asset Turnover | — | 1.27 | 1.27 | 1.22 | 1.10 | 1.04 | 0.98 | 1.18 | 1.16 | 1.13 | 0.77 |
| Inventory Turnover | 41.35 | 41.35 | 44.01 | 42.56 | 42.90 | 42.78 | 38.26 | 132.58 | — | 117.41 | 92.40 |
| Days Sales Outstanding | — | 57.55 | 57.94 | 57.43 | 59.58 | 58.16 | 63.43 | 57.05 | 67.21 | 65.71 | 86.44 |
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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.5% | 0.9% | 1.0% | 1.3% | 1.4% | 1.6% | 1.3% | 1.4% | 2.5% | 2.0% | 21.3% |
| Payout Ratio | 14.5% | 14.5% | 16.6% | 101.0% | 29.1% | 26.4% | 31.2% | 29.7% | 34.1% | 54.1% | 465.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.3% | 6.1% | 6.3% | 1.3% | 4.7% | 5.9% | 4.1% | 4.7% | 7.2% | 3.7% | 4.6% |
| FCF Yield | 11.9% | 6.7% | 6.2% | 6.4% | 5.9% | 7.3% | 7.6% | 6.1% | 8.6% | 4.5% | 7.8% |
| Buyback Yield | 6.9% | 3.9% | 4.5% | 1.6% | 3.7% | 2.1% | 0.7% | 3.2% | 5.4% | 0.3% | 0.5% |
| Total Shareholder Yield | 8.4% | 4.8% | 5.6% | 3.0% | 5.1% | 3.7% | 2.0% | 4.6% | 7.9% | 2.3% | 21.8% |
| Shares Outstanding | — | $132M | $136M | $138M | $138M | $143M | $144M | $145M | $153M | $154M | $104M |
Contract Recompete Concentration Risk
According to current market data, Leidos trades at a P/E of 9.14 and an EV/EBITDA of 7.28, suggesting that investors are pricing in significant skepticism regarding the company's ability to sustain long-term organic growth compared to its higher-multiple peers in the federal IT services sector.
The current valuation multiples appear to discount the company's specialized engineering capabilities, potentially misclassifying it as a lower-margin staffing firm. This valuation gap warrants investigation, as the forward P/E of 8.59 suggests that the market expects earnings stagnation despite the company's strategic shift toward higher-end maritime and health-related engineering.
Based on reported financial figures, Leidos has struggled to compound returns, with ROIC hovering between 3.1% and 4.6% over the last ten quarters, indicating that the heavy reliance on large-scale M&A has diluted the efficiency of capital deployed across the firm's diverse business segments.
The persistent gap between ROIC and the company's cost of capital suggests that recent acquisitions may not yet be generating the expected synergistic returns. Investors should monitor whether management can improve asset utilization, as the current trend indicates that capital is being deployed into projects that offer limited incremental value creation.
As reported in quarterly filings, the cash conversion cycle has fluctuated significantly from 6 days to 35 days, revealing that Leidos's operational efficiency is highly sensitive to the timing of federal government payment cycles and the inherent lumpiness of large-scale contract milestones.
The variability in DSO and DPO suggests that the company lacks consistent leverage over its working capital, which complicates cash flow forecasting. This inefficiency appears structural, as the firm's reliance on massive, multi-year IDIQ vehicles often forces it to absorb significant upfront costs before receiving milestone-based reimbursements.
According to recent SEC filings, Leidos maintains an interest coverage ratio that has remained relatively stable between 7.33 and 11.22, suggesting that despite the significant debt load incurred from past acquisitions, the company retains sufficient operational cash flow to service its current financial obligations.
While the D/E ratio appears to have stabilized, the absolute debt level remains a point of concern given the company's history of debt-funded expansion. The firm's ability to maintain these coverage levels is contingent upon continued contract wins, as any disruption in federal funding could rapidly tighten the company's financial flexibility.
Based on an analysis of the business model, the P/E ratio is the most commonly misapplied metric for Leidos, as it fails to account for the significant non-cash amortization charges stemming from the company's aggressive acquisition strategy, thereby obscuring the firm's true underlying cash-generating power.
Analysts should prioritize EV/EBITDA or P/FCF over P/E to better capture the cash-generative nature of the business, as GAAP earnings are heavily distorted by intangible asset write-downs. Relying on P/E alone risks underestimating the company's ability to fund future growth and shareholder returns through its actual operational cash flow.
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying LDOS stock.
Leidos Holdings, Inc.'s current P/E ratio is 9.8x. The historical average is 21.2x. This places it at the 11th percentile of its historical range.
Leidos Holdings, Inc.'s current EV/EBITDA is 7.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.3x.
Leidos Holdings, Inc.'s return on equity (ROE) is 30.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.8%.
Based on historical data, Leidos Holdings, Inc. is trading at a P/E of 9.8x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Leidos Holdings, Inc.'s current dividend yield is 1.47% with a payout ratio of 14.5%.
Leidos Holdings, Inc. has 17.7% gross margin and 12.3% operating margin. Operating margin between 10-20% is typical for established companies.
Leidos Holdings, Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.