HWM Relative Valuation
HWM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HWM is overvalued; if below, it's undervalued.
Historical Valuation
Howmet Aerospace Inc (HWM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 50.02 is considered Overvalued compared with the five-year average of 29.45. The fair price of Howmet Aerospace Inc (HWM) is between 103.40 to 156.49 according to relative valuation methord. Compared to the current price of 208.61 USD , Howmet Aerospace Inc is Overvalued By 33.3%.
Relative Value
Fair Zone
103.40-156.49
Current Price：208.61
33.3%
Overvalued
49.10
PE
1Y
3Y
5Y
Trailing
Forward
32.37
EV/EBITDA
Howmet Aerospace Inc. (HWM) has a current EV/EBITDA of 32.37. The 5-year average EV/EBITDA is 17.38. The thresholds are as follows: Strongly Undervalued below 6.46, Undervalued between 6.46 and 11.92, Fairly Valued between 22.84 and 11.92, Overvalued between 22.84 and 28.30, and Strongly Overvalued above 28.30. The current Forward EV/EBITDA of 32.37 falls within the Strongly Overvalued range.
36.67
EV/EBIT
Howmet Aerospace Inc. (HWM) has a current EV/EBIT of 36.67. The 5-year average EV/EBIT is 20.99. The thresholds are as follows: Strongly Undervalued below 9.56, Undervalued between 9.56 and 15.27, Fairly Valued between 26.70 and 15.27, Overvalued between 26.70 and 32.41, and Strongly Overvalued above 32.41. The current Forward EV/EBIT of 36.67 falls within the Strongly Overvalued range.
205.07
PS
Howmet Aerospace Inc. (HWM) has a current PS of 205.07. The 5-year average PS is 5.86. The thresholds are as follows: Strongly Undervalued below -35.41, Undervalued between -35.41 and -14.77, Fairly Valued between 26.50 and -14.77, Overvalued between 26.50 and 47.13, and Strongly Overvalued above 47.13. The current Forward PS of 205.07 falls within the Strongly Overvalued range.
48.29
P/OCF
Howmet Aerospace Inc. (HWM) has a current P/OCF of 48.29. The 5-year average P/OCF is 22.83. The thresholds are as follows: Strongly Undervalued below 5.27, Undervalued between 5.27 and 14.05, Fairly Valued between 31.61 and 14.05, Overvalued between 31.61 and 40.39, and Strongly Overvalued above 40.39. The current Forward P/OCF of 48.29 falls within the Strongly Overvalued range.
63.01
P/FCF
Howmet Aerospace Inc. (HWM) has a current P/FCF of 63.01. The 5-year average P/FCF is 30.02. The thresholds are as follows: Strongly Undervalued below 11.52, Undervalued between 11.52 and 20.77, Fairly Valued between 39.27 and 20.77, Overvalued between 39.27 and 48.53, and Strongly Overvalued above 48.53. The current Forward P/FCF of 63.01 falls within the Strongly Overvalued range.
Howmet Aerospace Inc (HWM) has a current Price-to-Book (P/B) ratio of 16.55. Compared to its 3-year average P/B ratio of 8.53 , the current P/B ratio is approximately 93.93% higher. Relative to its 5-year average P/B ratio of 6.69, the current P/B ratio is about 147.33% higher. Howmet Aerospace Inc (HWM) has a Forward Free Cash Flow (FCF) yield of approximately 0.02%. Compared to its 3-year average FCF yield of 2.46%, the current FCF yield is approximately -99.38% lower. Relative to its 5-year average FCF yield of 1.84% , the current FCF yield is about -99.17% lower.
16.24
P/B
Median3y
8.53
Median5y
6.69
0.02
FCF Yield
Median3y
2.46
Median5y
1.84
Competitors Valuation Multiple
The average P/S ratio for HWM's competitors is 578.04, providing a benchmark for relative valuation. Howmet Aerospace Inc Corp (HWM) exhibits a P/S ratio of 205.07, which is -64.52% above the industry average. Given its robust revenue growth of 13.84%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HWM increased by 73.23% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 36.57 to 57.60.
The secondary factor is the Revenue Growth, contributed 13.84%to the performance.
Overall, the performance of HWM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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