Leidos is scored 86 for moat and 88 for management. The management score rests on a return on invested capital of 15.0% and a gross margin of 17.7% — figures that describe a business turning capital into profit efficiently. Debt sits at 1.21x equity.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 6.9% a year, the rate measured from the filings. The exit multiple assumed is 13.8x. That produces an intrinsic value of $71.42, a 10-CAP price of $173.55 and a payback time price of $189.74, with the value zone set at the highest of the three, $189.74. Today's price of $121.97 sits inside that zone.
A business scoring this well, trading inside its value zone, is the combination the framework exists to find — which is also the reason to check why the market disagrees. A margin of safety score of 29 describes the cushion, not the certainty.
| Price | $121.97 |
| Market cap | $15.3B |
| P/E ratio | 11.4x |
| Return on invested capital | 15.0% |
| Gross margin | 17.7% |
| Debt to equity | 1.21x |
| Free cash flow yield | 6.7% |
| Growth rate used | 6.9% |
| Growth rate measured | 7.0% |
| Exit multiple assumed | 13.8x |
| Company | Moat | Buy price |
| CDW (CDW) | 48 | $90.50 |
| Gartner (IT) | 60 | $244.89 |
| Broadridge Financial Solutions (BR) | 95 | $134.87 |
| Jack Henry & Associates (JKHY) | 82 | $110.25 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Leidos rather than accepting ours.