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Leonardo DRSDRS +2.41%79 5-Year Yield-on-Cost % is 0.82 as of Jul. 18, 2026, which is 6% above its 10-year median of 0.77. GuruFocus rates DRS with a GF Score™ of 79/100 and a GF Value™ of $35.66 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 172 Aerospace & Defense companies, Leonardo DRS ranks worse than 58.14% on this metric.
Leonardo DRS's yield on cost for the quarter that ended in Mar. 2026 was 0.82.
The historical rank and industry rank for Leonardo DRS's 5-Year Yield-on-Cost % or its related term are showing as below:
DRS'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.2 Med: 0.77 Max: 1.04
Current: 0.82
During the past 8 years, Leonardo DRS's highest Yield on Cost was 1.04. The lowest was 0.20. And the median was 0.77.
DRS's 5-Year Yield-on-Cost % is ranked worse than 58.14% of 172
companies
in the Aerospace & Defense industry
Industry Median: 1.04
vs DRS: 0.82
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Leonardo DRS 5-Year Yield-on-Cost % Related Terms
DRS vs HII, PL, SARO: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, Leonardo DRS's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Leonardo DRS's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Leonardo DRS is calculated as
Leonardo DRS (DRS) has a 5-Year Yield-on-Cost % of 0.82 as of Jul. 18, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Leonardo DRS and its competitors. This is near median its historical median of 0.77. Over the past decade, Leonardo DRS's 5-Year Yield-on-Cost % has ranged from 0.20 to 1.04. According to the industry distribution chart, Leonardo DRS ranks #100 out of 172 companies in the Aerospace & Defense industry, placing it in the top 58.1%.
Is Leonardo DRS's 5-Year Yield-on-Cost % too high?
Leonardo DRS's current 5-Year Yield-on-Cost % of 0.82 is near median its 10-year median of 0.77. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 1.04. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.04. Leonardo DRS's value of 0.82 is 21.2% below this industry median. Based on the distribution chart, Leonardo DRS ranks #100 out of 172 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Leonardo DRS has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo DRS's 5-Year Yield-on-Cost % compare to HII and PL?
According to the Aerospace & Defense industry distribution chart, Leonardo DRS ranks #100 out of 172 companies for 5-Year Yield-on-Cost %. This places Leonardo DRS in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.04. Leonardo DRS's value of 0.82 is 21.2% below this benchmark. Historically, Leonardo DRS's own 5-Year Yield-on-Cost % has ranged from 0.20 to 1.04 over the past decade. While the company's 10-year median is 0.77 vs. the industry median of 1.04, Leonardo DRS 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 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.04, based on 172 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leonardo DRS's current 5-Year Yield-on-Cost % of 0.82 is 21.2% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Leonardo DRS and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo DRS's current 5-Year Yield-on-Cost % is 0.82, which is near median its own 10-year median of 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo DRS stock overvalued right now?
Based on GuruFocus' analysis, Leonardo DRS (DRS) is currently considered Modestly Overvalued. The stock's GF Value™ is $35.66, compared to a current price of $44.14 — trading 23.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.82, which is near median its 10-year median of 0.77 and 21.2% below the Aerospace & Defense industry median of 1.04. Leonardo DRS's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Leonardo DRS (DRS), the current 5-Year Yield-on-Cost % is 0.82 as of Jul. 18, 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 Leonardo DRS (DRS) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo DRS stock appears to be overvalued.
The current stock price of $44.14 is trading 23.8% above its estimated GF Value™ of $35.66.
GuruFocus considers Leonardo DRS to be Modestly Overvalued.
Key valuation signals for DRS:
5-Year Yield-on-Cost %: 0.82 (near median its 10-year median of 0.77)
GF Value™: $35.66 vs. price of $44.14 (23.8% above fair value)
Industry Position: 21.2% below the Aerospace & Defense median (#100 of 172)
No single metric tells the full story. See the DRS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. It is in the design, development, and manufacture of Advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions. The company has two segments: Advanced Sensing and Computing, which generates the majority of revenue, and the Integrated Mission Systems segment. The Advanced Sensing and Computing segment is engaged in designing, developing, and manufacturing sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision-making and execution by the customers.
79GF Score
Get the complete analysis for DRS
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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