Leidos

Methodology

Leidos' defense and intelligence technology services generate relatively predictable earnings from long-term government contracts for IT systems, cybersecurity, and biomedical research. The company's essential services to defense and civilian agencies provide revenue visibility. This calculation works reasonably well given multi-year contract structures, though government budget cycles and program timing create moderate earnings volatility.

Methodology

Leidos typically shows moderate PEG ratios reflecting steady growth from defense modernization and civilian IT outsourcing. The company's technology focus and program execution support consistent positioning. Compare to other defense services companies to assess whether Leidos' IT capabilities and contract backlog justify valuations relative to peers with different government versus commercial exposure.

Methodology

Leidos pays a modest dividend as management balances capital returns with debt reduction and strategic investments in technology capabilities. The company generates predictable cash flows from government contracts. PEGY provides some context, though the primary value drivers remain contract awards, program execution, and margin expansion in technology services.