So, who’s most undervalued? Rheinmetall’s sky-high P/E and momentum make it look overvalued unless war escalates dramatically—its intrinsic value may lag its price. BAE Systems and Saab, while solid, seem fairly priced for their growth trajectories. Thales and Leonardo stand out as potentially undervalued: Thales for its tech-driven margins and reasonable premium, and Leonardo for its lower P/E and strong backlog relative to peers. Airbus could be a sleeper pick if defense spending lifts its smaller division more than expected. If I had to rank them, Leonardo edges out Thales for the top spot—its valuation hasn’t caught up to its fundamentals as aggressively, offering more room to grow into an intrinsic value tied to Europe’s defense awakening. That said, this hinges on sustained geopolitical pressure and EU budget execution, both of which remain wild cards.