What is Leonardo DRS, Inc. (DRS)'s PEG ratio?

Leonardo DRS, Inc. (DRS) has a PEG ratio of 2.80 (Potentially Overvalued), based on a PE ratio of 36.4 and expected EPS growth of 13.0% (5-Year EPS CAGR).

Is DRS undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 2.80, Leonardo DRS, Inc. (DRS) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/DRS.

Leonardo DRS, Inc. (DRS) PEG Ratio

Potentially Overvalued

PE ratio relative to earnings growth — is the valuation justified?

2.80

PEG Ratio

2.80

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$43.72

TTM EPS

$1.20

P/E Ratio

36.43

Growth Rate

13.0%

5-Year EPS CAGR

Sector

Industrials

Aerospace & Defense

Calculated

8/18/2026

10:04:58 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

2.35

25th Percentile

2.20

75th Percentile

3.85

DRS PEG (2.80) vs Industry Median (2.35): 19% premium

Symbol	Company	PEG	P/E	Growth	vs DRS
AIR	AAR Corp.	0.62	22.9	37.0%	-78%
CW	Curtiss-Wright Corporation	2.20	47.9	21.8%	-22%
CAE	CAE Inc.	2.50	29.7	11.9%	-11%
ESLT	Elbit Systems Ltd.	3.85	58.5	15.2%	+37%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Leonardo DRS, Inc. (DRS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on DRS

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Leonardo DRS, Inc. (DRS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on DRS

Compare with peers

Explore