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Leidos HoldingsMIL:1LDOS 57 Interest Coverage is 9.78 as of Mar. 2026, which is 69% above its 10-year median of 5.77. GuruFocus rates MIL:1LDOS with a GF Score™ of 57/100 and a GF Value™ of €147.21 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,714 Software companies, Leidos Holdings ranks worse than 65.4% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Leidos Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was €465 Mil. Leidos Holdings's Interest Expense for the
three
months ended in Mar. 2026 was €-48 Mil.
Leidos Holdings's interest coverage for the quarter that ended in Mar. 2026 was 9.78.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Leidos Holdings's Interest Coverage or its related term are showing as below:
MIL:1LDOS'
s Interest Coverage Range Over the Past 10 Years
Min: 4.7 Med: 5.77 Max: 10.34
Current: 10.1
MIL:1LDOS's Interest Coverage is ranked worse than 65.4% of 1714
companies
in the Software industry
Industry Median: 24.61
vs MIL:1LDOS: 10.10
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Leidos Holdings Interest Coverage Related Terms
Leidos Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Leidos Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MIL:1LDOS vs WSE, APLD, CIFR: Interest Coverage Comparison
For the Information Technology Services subindustry, Leidos Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Leidos Holdings Interest Coverage vs Software Industry
For the Software industry and Technology sector, Leidos Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Leidos Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Leidos Holdings (MIL:1LDOS) has a Interest Coverage of 9.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Leidos Holdings and its competitors. This is 69% above median its historical median of 5.77. Over the past decade, Leidos Holdings' Interest Coverage has ranged from 4.70 to 10.34. According to the industry distribution chart, Leidos Holdings ranks #1121 out of 1714 companies in the Software industry, placing it in the top 65.4%.
Is Leidos Holdings' Interest Coverage too high?
Leidos Holdings' current Interest Coverage of 9.78 is 69% above median its 10-year median of 5.77. Over the past 10 years, this metric has ranged from a low of 4.70 to a high of 10.34. The Software industry median Interest Coverage is 24.61. Leidos Holdings' value of 9.78 is 60.3% below this industry median. Based on the distribution chart, Leidos Holdings ranks #1121 out of 1714 companies in the Software industry, which is below the industry midpoint. Overall, Leidos Holdings has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leidos Holdings' Interest Coverage compare to WSE and APLD?
According to the Software industry distribution chart, Leidos Holdings ranks #1121 out of 1714 companies for Interest Coverage. This places Leidos Holdings in the lower half of its industry. The industry median Interest Coverage is 24.61. Leidos Holdings' value of 9.78 is 60.3% below this benchmark. Historically, Leidos Holdings' own Interest Coverage has ranged from 4.70 to 10.34 over the past decade. While the company's 10-year median is 5.77 vs. the industry median of 24.61, Leidos Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.61, based on 1,714 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leidos Holdings's current Interest Coverage of 9.78 is 60.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Leidos Holdings and its competitors. For the Software industry, the median Interest Coverage is 24.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leidos Holdings's current Interest Coverage is 9.78, which is 69% above median its own 10-year median of 5.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leidos Holdings stock overvalued right now?
Based on GuruFocus' analysis, Leidos Holdings (MIL:1LDOS) is currently considered Significantly Undervalued. The stock's GF Value™ is €147.21, compared to a current price of €95.00 — trading 35.5% below its estimated fair value. The current Interest Coverage is 9.78, which is 69% above median its 10-year median of 5.77 and 60.3% below the Software industry median of 24.61. Leidos Holdings' overall GF Score™ is 57/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Leidos Holdings (MIL:1LDOS), the current Interest Coverage is 9.78 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Leidos Holdings (MIL:1LDOS) Overvalued in 2026?
Based on GuruFocus' analysis, Leidos Holdings stock appears to be undervalued.
The current stock price of €95.00 is trading 35.5% below its estimated GF Value™ of €147.21.
GuruFocus considers Leidos Holdings to be Significantly Undervalued.
Key valuation signals for MIL:1LDOS:
Interest Coverage: 9.78 (69% above median its 10-year median of 5.77)
GF Value™: €147.21 vs. price of €95.00 (35.5% below fair value)
Industry Position: 60.3% below the Software median (#1121 of 1714)
No single metric tells the full story. See the MIL:1LDOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil, and health management, both domestically and internationally. The customers of the company includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.
57GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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