Leonardo DRS, Inc.(DRS) Intrinsic Value & DCF Analysis (2026)
Current Price
$44.40
Last updated: Mar 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
The intrinsic value of Leonardo DRS, Inc. (DRS) is estimated at $29.20 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.40, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.30% long-term growth rate and a 9.00% discount rate (calculated: 7.62%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Leonardo DRS, Inc. (DRS) is estimated at $29.20 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.40, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.30% long-term growth rate and a 9.00% discount rate (calculated: 7.62%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Investment Coach
- Price moves to at least a mid-teens discount to fair value
- Sustained improvement in ROIC versus WACC spread
- Emergence of fresh sentiment coverage to replace missing narrative signals
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Leonardo DRS, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Leonardo DRS, Inc.Industrials
Leonardo DRS, Inc., together with its subsidiaries, provides defense products and technologies in the land, air, sea, space, cyber and security, and commercial domains for military applications. It operates in two segments, Advanced Sensing and Computing, and Integrated Mission Systems. The company offers advanced sensor technologies, including infrared systems and sensors for threat detection and situational awareness; uncooled infrared systems and brownout solutions; airborne, ground vehicle mounted, and dismounted soldier electronic warfare (EW) systems; and EW software and training systems, and intelligence solutions. It also provides computing systems for ground vehicles, ships, and submarines; network and data distribution applications; sensor systems; and networked computing infrastructure on military platform. In addition, the company offers force protection systems, such as solutions for counter-unmanned aerial systems, short-range air defense systems, and active protection systems; and power control, distribution, conversion, and propulsion systems, as well as hybrid electric drive propulsion systems, energy storage, gas turbine packages, nuclear instrumentation and controls, and thermal management and refrigeration equipment. It serves the U.S. military, aerospace and defense prime contractors, government intelligence agencies, and international military customers. The company was founded in 1969 and is based in Arlington, Virginia.