Latest Ratios: P/E Ratio 25.0x · EV/EBITDA 17.1x · 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 | $9.1B | $9.2B | $8.6B | $5.3B | $2.7B | $1.4B | $1.5B | $753M | $344M | $100M | $29M |
| Enterprise Value | $8.9B | $9.0B | $8.5B | $5.3B | $2.9B | $1.6B | $1.9B | $1.5B | $1.9B | $1.8B | $1.9B |
| P/E Ratio → | 25.02 | 33.10 | 40.39 | 31.31 | 6.80 | 8.89 | 17.11 | 9.98 | 2.07 | 0.79 | 0.36 |
| P/S Ratio | 2.34 | 2.51 | 2.67 | 1.87 | 1.02 | 0.47 | 0.53 | 0.28 | 0.10 | 0.04 | 0.02 |
| P/B Ratio | 3.35 | 3.36 | 3.38 | 2.28 | 1.29 | 0.86 | 1.02 | 0.74 | 0.20 | 0.07 | 0.02 |
| P/FCF | 26.40 | 40.37 | 46.50 | 36.49 | — | 11.58 | 21.17 | 7.38 | 2.45 | 0.72 | 0.26 |
| P/OCF | 24.81 | 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 | 17.06 | 20.38 | 22.16 | 16.84 | 4.68 | 5.50 | 8.25 | 6.96 | 4.31 | 4.62 | 7.70 |
| EV / EBIT | 25.59 | 26.12 | 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 | 23.8% | 23.8% | 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 | 43.00 | 43.00 | 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 | 7.89 | 7.89 | 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 | 1.0% | 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 | 4.0% | 3.0% | 2.5% | 3.2% | 14.7% | 11.3% | 5.8% | 10.0% | 48.2% | 127.1% | 277.6% |
| FCF Yield | 3.8% | 2.5% | 2.2% | 2.7% | — | 8.6% | 4.7% | 13.6% | 40.7% | 139.5% | 387.9% |
| Buyback Yield | 0.4% | 0.4% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.4% | 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 |
Includes 30+ ratios · 10 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DRS stock.
Leonardo DRS, Inc.'s current P/E ratio is 25.0x. The historical average is 15.1x. This places it at the 70th percentile of its historical range.
Leonardo DRS, Inc.'s current EV/EBITDA is 17.1x. 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 25.0x. This is at the 70th 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 1.05% with a payout ratio of 34.5%.
Leonardo DRS, Inc. has 23.8% 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.
Key Metrics
Top Statement Risk
Fixed-price contract cost overruns
Metrics are mathematically derived from official filings.
Premium Multiples Priced for Sustained Growth
Based on reported figures, DRS trades at 32.04x trailing earnings and 19.56x EV/EBITDA, a premium to the sector median that implies the market is pricing in continued double-digit revenue growth and margin expansion.
The gap between the trailing P/E of 32.04x and the forward P/E of 23.18x shows that the market expects meaningful earnings growth over the next year. A PEG of 2.55 suggests the growth priced in is already rich relative to the earnings trajectory, leaving limited room for error. Against higher-margin peers such as HEICO and Curtiss-Wright, DRS's multiples look elevated, which warrants monitoring whether its margin profile can justify the premium.
Operating Margin Scaling Ahead of Gross Profit
As reported in quarterly figures, DRS's operating margin rose from 7.3% in 2024Q2 to 10.9% in 2026Q3, while gross margin improved more modestly from 22.4% to 24.7%, indicating overhead leverage is driving the gains.
The widening spread between operating and gross margin suggests SG&A and R&D are growing more slowly than revenue, which is a constructive sign of operating discipline. However, a 24.7% gross margin still trails the high-30s figures posted by higher-quality peers, indicating limited pricing power on fixed-price work. Investors should monitor whether margin gains persist if cost inflation or EAC adjustments reverse recent improvements.
Returns Recovering From Depressed Base
According to reported ratios, ROIC improved from 1.5% in 2024Q2 to 3.1% in 2026Q3, but remains well below the 12.6% to 14.1% returns posted by HEICO and Curtiss-Wright, suggesting the compounding story is still early.
The upward trajectory in ROIC and ROE reflects both margin recovery and a larger equity base following strong earnings retention. Yet returns remain low in absolute terms, partly because goodwill from the RADA acquisition inflates invested capital. The compounding case therefore depends on whether incremental margins from the backlog can lift ROIC meaningfully above current levels.
Minimal Debt Load Provides Flexibility
Based on reported figures, DRS's debt-to-equity ratio sits at 0.10 in 2026Q3, down from 0.19 in 2024Q2, and interest coverage has been comfortable, suggesting limited refinancing or covenant pressure.
The low leverage profile means debt service is not a meaningful constraint on earnings or capital allocation. The decline in debt-to-EBITDA from 6.01 to 2.07 indicates earnings growth is outpacing borrowing. Investors should note that the leverage picture is flattered by a rising equity base and should still monitor any future debt-funded acquisitions.
Misapplied Gross Margin Comparison Flatters Peers
Gross margin is often compared across defense peers, but for DRS's percentage-of-completion accounting, operating cash conversion over a full cycle is a more reliable indicator than any single quarter's margin.
Because revenue recognition relies on management's cost-to-complete estimates, reported gross margins can shift with cumulative catch-up adjustments that obscure underlying economics. The quarterly FCF margin swinging from -21.3% to 42.2% illustrates how timing dominates the picture. Analysts should evaluate trailing twelve-month cash conversion and EAC trends rather than relying on the headline gross margin.