European Defence Sector: Strategic Insights into Europe’s Military Industry

Andrea Zito
Apr 29
1 min read

The defence sector, and especially the European defence sector, is an interesting yet controversial sector filled with nuances and moral ambiguity, but also great potential for growth. In this report we perform a deep dive into the intricacies of the European defence sector to help our readers understand this complicated sector on a deeper level. We cover the key players, industry characteristics, current catalysts driving growth, competitors, our position and valuation on the sector and a specific key player, and finally the ethics of the sector.

Within the sector, we have chosen to perform a valuation on Leonardo, the Italian key player in the European defence sector. We believe this will give us a rough picture of the sector as a whole and help us evaluate the future potential of the industry.

DCF results

Our position

Following DCF Valuation, Multiples and Ratios analysis as of April 2025 we recommend Leonardo’s stock with a “buy” rating. Furthermore, we believe this reflects a wider belief in the bullishness of the European defence sector over the same period.