Latest Ratios: P/E Ratio 11.1x · EV/EBITDA 8.4x · 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 | $15.5B | $24.3B | $20.0B | $14.9B | $14.5B | $12.7B | $15.1B | $14.2B | $8.1B | $9.9B | $5.3B |
| Enterprise Value | $20.2B | $29.0B | $24.4B | $19.4B | $19.5B | $17.7B | $19.9B | $16.8B | $10.9B | $12.7B | $8.3B |
| P/E Ratio → | 11.08 | 16.48 | 15.96 | 75.17 | 21.21 | 16.87 | 24.11 | 21.28 | 13.87 | 27.13 | 21.76 |
| P/S Ratio | 0.90 | 1.41 | 1.20 | 0.97 | 1.01 | 0.93 | 1.23 | 1.28 | 0.79 | 0.98 | 0.76 |
| P/B Ratio | 3.29 | 4.90 | 4.49 | 3.51 | 3.33 | 2.93 | 3.91 | 4.15 | 2.44 | 2.94 | 1.69 |
| P/FCF | 9.54 | 14.95 | 16.10 | 15.59 | 16.94 | 13.71 | 13.15 | 16.30 | 11.61 | 22.35 | 12.75 |
| P/OCF | 8.86 | 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 | 8.41 | 12.06 | 11.51 | 20.33 | 13.72 | 11.95 | 15.56 | 14.69 | 10.80 | 14.19 | 15.34 |
| EV / EBIT | 9.60 | 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 | 1.3% | 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 | 9.0% | 6.1% | 6.3% | 1.3% | 4.7% | 5.9% | 4.1% | 4.7% | 7.2% | 3.7% | 4.6% |
| FCF Yield | 10.5% | 6.7% | 6.2% | 6.4% | 5.9% | 7.3% | 7.6% | 6.1% | 8.6% | 4.5% | 7.8% |
| Buyback Yield | 6.1% | 3.9% | 4.5% | 1.6% | 3.7% | 2.1% | 0.7% | 3.2% | 5.4% | 0.3% | 0.5% |
| Total Shareholder Yield | 7.4% | 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 |
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 11.1x. The historical average is 21.2x. This places it at the 16th percentile of its historical range.
Leidos Holdings, Inc.'s current EV/EBITDA is 8.4x. 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 11.1x. This is at the 16th 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 1.29% 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.
Key Metrics
Top Statement Risk
Federal budget dependency
Metrics are mathematically derived from official filings.
Discount Embeds Modest Growth
Leidos trades at 11.7x trailing earnings and 8.8x EV/EBITDA, a discount to peers like CACI (23.5x P/E) and SAIC (15.6x P/E). According to recent market data, the PEG of 0.57 suggests the market prices in below-consensus growth.
The valuation implies the market expects limited acceleration despite the recent 7.2% revenue growth and raised guidance. Compared to Booz Allen's premium multiple, Leidos' discount may reflect its lower-margin integration business and federal budget concentration. The forward EV/EBITDA of 6.6x appears to price in margin compression, yet operating margins have expanded to 11.1%, suggesting potential re-rating if momentum persists.
Margin Expansion Defies Pass-Through
Gross margin reached 17.9% in Q2 2026, a ten-quarter high, while operating margin held at 11.1%. As reported in the latest income statement, net margin improved to 7.8%, reflecting favorable contract mix and cost discipline.
The improvement in gross margin from 16.0% a year ago indicates a shift toward higher-value work, possibly fixed-price contracts and proprietary solutions. Operating margin stability despite revenue growth suggests SG&A leverage, with SG&A as a percentage of revenue declining to 6.2%. However, the pass-through nature of government contracting means gross margins are structurally lower than commercial IT peers, so the trend is more meaningful than the absolute level.
ROIC Recovery Still Subdued
ROIC improved to 3.3% in Q2 2026 from 3.6% a year earlier, but remains below the cost of capital. Based on reported figures, ROE has been volatile, ranging from 6.2% to 8.7% over the past ten quarters.
The modest ROIC reflects the capital intensity of acquisitions, with goodwill now representing nearly half of total assets. While operating margins have expanded, the return on capital is diluted by the $2.3 billion acquisition in Q1 2026, which has yet to generate full returns. Investors should monitor whether the integration of acquired assets can lift ROIC toward the double-digit levels seen at peers like Booz Allen (18.6%).
Working Capital Swings Drive CCC
The cash conversion cycle swung from 35 days in Q4 2025 to 13 days in Q2 2026, driven by a sharp increase in days payable outstanding to 53. According to the balance sheet, DSO remained stable at 60 days.
The improvement in CCC is largely due to extended payment terms with suppliers, as DPO rose from 36 to 53 days quarter-over-quarter. This suggests Leidos is leveraging its scale to manage working capital, though the volatility in CCC (ranging from 6 to 35 days) indicates timing effects from government billing cycles. Asset turnover of 0.29x is low, reflecting the balance sheet expansion from acquisitions, but this is typical for the services-heavy model.
Leverage Creeps Up on M&A
Debt-to-equity rose to 1.23 in Q2 2026 from 1.19 in Q4 2025, while interest coverage remained comfortable at 7.5x. As per the balance sheet, total debt increased to $6.6 billion following the acquisition.
The increase in leverage is directly attributable to the $2.3 billion acquisition, but the debt-to-EBITDA of 12.65x appears elevated, though this may be distorted by the trailing twelve-month EBITDA calculation. Interest coverage of 7.5x suggests debt service is manageable, but the reliance on acquisitions for growth could lead to further leverage if the pace continues. The company's history of debt-funded M&A warrants monitoring for covenant headroom.
Liquidity Strengthens Despite Cash Dip
The current ratio improved to 1.63 in Q2 2026 from 1.40 in Q1, while cash dropped to $748 million from $1.2 billion in Q4 2025. Based on the balance sheet, quick ratio of 1.60 indicates minimal inventory dependence.
The improvement in the current ratio is driven by a reduction in current liabilities, possibly from timing of payables, rather than an increase in cash. The quick ratio of 1.60 suggests the company can cover short-term obligations without relying on inventory, which is minimal in this services model. However, the cash balance is lower due to acquisition outflows, and the reliance on government payments could create temporary liquidity stress during a shutdown.
P/E Misleads on Earnings Quality
The P/E ratio of 11.7x understates Leidos' true earning power because GAAP earnings are depressed by amortization of intangibles from past acquisitions. According to the cash flow statement, FCF margin of 16.7% suggests higher cash generation than net income implies.
The most commonly misapplied ratio for Leidos is the P/E, as it fails to account for the significant non-cash amortization charges from the IS&GS and Dynetics deals. These charges reduce net income but do not affect cash flow, making the P/E appear higher than the economic reality. Investors should use EV/EBITDA or P/FCF (10.1x) to better capture the underlying cash generation, which is more indicative of the company's ability to service debt and fund growth.