莱多斯

At face value, Leidos Holdings Inc looks inexpensive, following a substantial price decline over the past year. To account for the risk of a possible value trap, we have capped its rating at 3 stars. The stock currently trades at a 26% discount to our quantitative fair value estimate of $163.66 per share; however, some caution is warranted due to this estimate's medium uncertainty rating.

The company's profitability strengthens our quantitative valuation. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. Reflecting the firm's profitability is its earnings yield of 10.4%, which falls in the top 20% globally. This suggests that it is generating substantial earnings relative to its share price, which contributes to our view that shares are cheap.

The firm's valuation metrics are an additional encouraging factor. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's enterprise value to revenue ratio of 1.2, for example, lies in the bottom 30% compared with global peers. The prevailing enterprise value/sales ratio is low relative to the long-term earnings power of the business. This characteristic further promotes our favorable price/fair value ratio.

The company's narrow quantitative moat rating indicates it could outearn its cost of capital and maintain robust margins for 10 years or longer. In addition, the company's moderate financial health score is decent and doesn't seriously concern us with regard to financial distress.