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Leidos Holdings, Inc. — Intrinsic Value & Fair Price

LDOS
NYSETechnologyInformation Technology ServicesCIK 0001336920leidos.comAbout LDOS
Last close · Oct 16, 2026124.85+0.85 (+0.69%)
Market cap$15.7B
Model value · DCF · Perpetuity growth · 5y
265.15
Leidos closed at $124.85 — undervalued by 53% vs model.
149.36the model's range696.06

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
32.69 – 276.03
Wall St. target
142.50 12% below
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.38%
Past 2 years
low 0.75%high 1.69%
Dividends per share, a year at a time
$1.38Sep ’21$1.44Sep ’22$1.44Sep ’23$1.52Sep ’24$1.60Sep ’25$1.72TTM
Coverage
—
Raised
7 years in a row
Growth, 5 yrs
4.5% a year
Last change
+7.5% · Dec 2025
Every payment, with ex-dates · latest $0.43, paid Sep 30, 2026

Research on LDOS

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How it is valued

Valued asMature & Stable
Low/slowing growth (~6% recent)Moderate margins (8% net margin)Highly cyclical earningsStrong FCF yield (10.4%)
What growth the price implies: the reverse DCF

Key figures

FY2026
P/E
11.2×
EV / EBITDA
8.0×
FCF yield
9.8%
Dividend yield, TTM
1.38%
Beta
0.59
Cost of capital (WACC)
7.13%
Full financials

Analyst actions

third-party, quoted
10-08JP Morgan · “Neutral” from “Overweight”downgrade
10-06Jefferies · target130.00
09-08Cowen & Co. · target135.00
08-17Wells Fargo · target165.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
3 more companies list LDOS as a comparable

The weekly

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About Leidos

Leidos Holdings, Inc., along with its various subsidiaries, delivers a broad spectrum of services and innovative solutions across key markets: defense, intelligence, civil government, and health. The company operates both domestically within the United States and on an international scale. Its operations are organized into three principal divisions: Defense Solutions, Civil, and Health. The Defense Solutions segment is dedicated to providing national security systems and specialized support spanning air, land, sea, space, and cyberspace domains. Its extensive client base includes the U.S. Intelligence Community, the Department of Defense, NASA, various military branches, allied foreign governments, and other federal and commercial entities within the national security sector. This division's offerings encompass advanced technology, large-scale systems integration, command and control platforms, sophisticated data analytics, logistics, robust cybersecurity defenses, and crucial intelligence analysis and operational support for critical missions. The Civil segment offers systems integration capabilities primarily to air navigation service providers, such as the Federal Aviation Administration (FAA). This involves critical programs like En Route Automation Modernization (ERAM), Advanced Technology Oceanic Procedure (ATOP), Time Based Flow Management (TBFM), Terminal Flight Data Management (TFDM), GEO-7, and Future Flight Services, as well as developing enterprise-wide information display systems. Additionally, this segment provides security detection and automation services. Its portfolio further extends to comprehensive information technology (IT) solutions, covering areas like cloud computing, mobility, application modernization, DevOps, data center operations, network upgrades, asset management, help desk support, and digital workplace enablement. Environmental, energy, and infrastructure services also fall under this division. Finally, the Health segment furnishes solutions to both federal and commercial clients globally, focusing on initiatives that promote human health and well-being. This includes services such as health information management, managed healthcare programs, digital transformation projects, and support for life sciences research and development. Leidos Holdings, Inc. was established in 1969 and is based out of Reston, Virginia.

CEO
Thomas A. Bell
Headquarters
Reston, VA
Employees
50,000
IPO
2006-10-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.