Leonardo DRS, Inc.Opportunity Rank #244(DRS) Intrinsic Value & DCF Analysis (2026)
Current Price
$44.99
Last updated: Jun 23, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-06-22
The intrinsic value of Leonardo DRS, Inc. (DRS) is estimated at $32.88 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.99, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.54% long-term growth rate and a 9.00% discount rate (calculated: 7.70%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Leonardo DRS, Inc. (DRS) is estimated at $32.88 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.99, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.54% long-term growth rate and a 9.00% discount rate (calculated: 7.70%), 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
Trend Details
Investment Coach
- Price moving to at least a mid-teens discount to fair value
- Sustained improvement in ROIC vs WACC spread
- Meaningful shifts in the narrative trend and score direction
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
Established in Arlington, Virginia, in 1969, Leonardo DRS, Inc. is a leading supplier of advanced defense products and technologies. The company's diverse portfolio addresses military requirements across various environments, including land, air, sea, space, and cybersecurity, with additional applications in the commercial sector. Its operations are organized into two primary divisions: Advanced Sensing and Computing, and Integrated Mission Systems. DRS provides sophisticated sensing solutions, such as infrared systems for threat identification and improving situational awareness, alongside uncooled infrared technologies and systems designed to mitigate brownout conditions. Their electronic warfare (EW) capabilities encompass airborne, vehicle-mounted, and soldier-borne systems, supported by specialized EW software, training tools, and intelligence services. Furthermore, Leonardo DRS develops essential computing systems for military platforms like ground vehicles, ships, and submarines. These offerings include robust network and data distribution applications, integrated sensor systems, and resilient networked computing infrastructure. The company also specializes in force protection, delivering solutions for counter-unmanned aerial systems (C-UAS), short-range air defense, and active protection systems. Additionally, DRS is a key provider of power management and propulsion technologies, offering systems for power control, distribution, conversion, and propulsion—including hybrid electric drive systems, energy storage solutions, gas turbine packages, nuclear instrumentation and controls, and thermal management and refrigeration equipment. Leonardo DRS serves a broad client base, which includes the U.S. military, major aerospace and defense contractors, government intelligence agencies, and international armed forces.