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Leonardo DRS (Leonardo DRS) Graham Number : $8.15 (As of Mar. 2024)


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What is Leonardo DRS Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-05-25), the stock price of Leonardo DRS is $23.92. Leonardo DRS's graham number for the quarter that ended in Mar. 2024 was $8.15. Therefore, Leonardo DRS's Price to Graham Number ratio for today is 2.93.

The historical rank and industry rank for Leonardo DRS's Graham Number or its related term are showing as below:

DRS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.79   Med: 2.38   Max: 2.93
Current: 2.93

During the past 6 years, the highest Price to Graham Number ratio of Leonardo DRS was 2.93. The lowest was 1.79. And the median was 2.38.

DRS's Price-to-Graham-Number is ranked worse than
61.7% of 188 companies
in the Aerospace & Defense industry
Industry Median: 2.54 vs DRS: 2.93

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Leonardo DRS Graham Number Historical Data

The historical data trend for Leonardo DRS's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Leonardo DRS Graham Number Chart

Leonardo DRS Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial - 5.28 7.78 7.18 7.65

Leonardo DRS Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.69 6.85 7.50 7.65 8.15

Competitive Comparison of Leonardo DRS's Graham Number

For the Aerospace & Defense subindustry, Leonardo DRS's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Leonardo DRS's Price-to-Graham-Number Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Leonardo DRS's Price-to-Graham-Number falls into.



Leonardo DRS Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Leonardo DRS's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*3.565*0.73)
=7.65

Leonardo DRS's Graham Number for the quarter that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*3.692*0.8)
=8.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Leonardo DRS  (NAS:DRS) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Leonardo DRS's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=23.92/8.15
=2.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Leonardo DRS Graham Number Related Terms

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Leonardo DRS (Leonardo DRS) Business Description

Traded in Other Exchanges
Address
2345 Crystal Drive, Suite 1000, Arlington, VA, USA, 22202
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space and cyber domains. The diverse array of defense systems and solutions is offered to all branches of the U.S. military, aerospace and defense prime contractors, government intelligence agencies and international military customers for deployment on a wide range of military platforms.
Executives
Leonardo S.p.a 10 percent owner PIAZZA MONTE GRAPPA 4, ROME L6 00195
Brothers Louis R Jr director REDWIRE CORPORATION, 8226 PHILIPS HIGHWAY, SUITE 101, JACKSONVILLE FL 32256
Gail Baker director C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE SUITE 1000, ARLINGTON VA 22202
Leonardo Us Holding, Inc. 10 percent owner 1235 SOUTH CLARK STREET, SUITE 700, ARLINGTON VA 22202
George Casey director C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
William Iii Lynn director, officer: Chief Executive Officer C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Pamela Morrow officer: SVP and Controller C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 2000, ARLINGTON VA 22202
Michael Dippold officer: EVP and CFO C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Sally Wallace officer: EVP, Business Operations C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Mark Dorfman officer: EVP, GC and Secretary C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Frances F Townsend director C/O BAKER BOTTS LLP, THE WARNER, 1299 PENNSYLVANIA AVE., NW, WASHINGTON DC 20004-2400
David W Carey director 10815 RANCHO BERNARDO RD.,, SUITE 310, SAN DIEGO CA 92127
Peter Marino director 12701 FAIR LAKES CIRCLE, FAIRFAX VA 22033
Mary E Gallagher director
Kenneth J Krieg director 7111 XAVIER COURT, MCLEAN VA 22101