P/E Ratio

The current price-to-earnings (P/E) ratio of 13.8x means investors are paying $13.80 for every $1 of LDOS’s annual earnings — a measure of how cheap or expensive the stock is relative to its profits.

At 13.8x, LDOS trades well below the sector median of 23.9x, placing it in the 16th percentile among its peers, indicating it is cheaper than about 84% of comparable companies. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 0.4%, moving from 13.9x last quarter to 13.8x now. A low P/E combined with a slight downward trend could suggest the market is pricing in lower future earnings growth or increased risk, though the drop is small. This low valuation relative to peers may present a value opportunity if earnings hold steady, but the declining trend warrants caution. The P/E ratio’s cheapness and its percentile rank support the overall NEUTRAL verdict by highlighting a potential value case that is balanced by the lack of strong upward momentum.

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