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 46.97 is considered Overvalued compared with the five-year average of 29.67. The fair price of Howmet Aerospace Inc (HWM) is between 103.31 to 157.71 according to relative valuation methord. Compared to the current price of 196.27 USD , Howmet Aerospace Inc is Overvalued By 24.45%.
Relative Value
Fair Zone
103.31-157.71
Current Price：196.27
24.45%
Overvalued
46.97
PE
1Y
3Y
5Y
Trailing
Forward
30.46
EV/EBITDA
Howmet Aerospace Inc. (HWM) has a current EV/EBITDA of 30.46. The 5-year average EV/EBITDA is 17.84. The thresholds are as follows: Strongly Undervalued below 6.12, Undervalued between 6.12 and 11.98, Fairly Valued between 23.69 and 11.98, Overvalued between 23.69 and 29.55, and Strongly Overvalued above 29.55. The current Forward EV/EBITDA of 30.46 falls within the Strongly Overvalued range.
34.51
EV/EBIT
Howmet Aerospace Inc. (HWM) has a current EV/EBIT of 34.51. The 5-year average EV/EBIT is 21.45. The thresholds are as follows: Strongly Undervalued below 9.19, Undervalued between 9.19 and 15.32, Fairly Valued between 27.57 and 15.32, Overvalued between 27.57 and 33.70, and Strongly Overvalued above 33.70. The current Forward EV/EBIT of 34.51 falls within the Strongly Overvalued range.
8.81
PS
Howmet Aerospace Inc. (HWM) has a current PS of 8.81. The 5-year average PS is 3.93. The thresholds are as follows: Strongly Undervalued below -0.22, Undervalued between -0.22 and 1.86, Fairly Valued between 6.01 and 1.86, Overvalued between 6.01 and 8.09, and Strongly Overvalued above 8.09. The current Forward PS of 8.81 falls within the Strongly Overvalued range.
45.43
P/OCF
Howmet Aerospace Inc. (HWM) has a current P/OCF of 45.43. The 5-year average P/OCF is 23.61. The thresholds are as follows: Strongly Undervalued below 4.49, Undervalued between 4.49 and 14.05, Fairly Valued between 33.17 and 14.05, Overvalued between 33.17 and 42.73, and Strongly Overvalued above 42.73. The current Forward P/OCF of 45.43 falls within the Strongly Overvalued range.
59.30
P/FCF
Howmet Aerospace Inc. (HWM) has a current P/FCF of 59.30. The 5-year average P/FCF is 31.10. The thresholds are as follows: Strongly Undervalued below 10.04, Undervalued between 10.04 and 20.57, Fairly Valued between 41.63 and 20.57, Overvalued between 41.63 and 52.16, and Strongly Overvalued above 52.16. The current Forward P/FCF of 59.30 falls within the Strongly Overvalued range.
Howmet Aerospace Inc (HWM) has a current Price-to-Book (P/B) ratio of 15.55. Compared to its 3-year average P/B ratio of 8.75 , the current P/B ratio is approximately 77.62% higher. Relative to its 5-year average P/B ratio of 6.84, the current P/B ratio is about 127.17% higher. Howmet Aerospace Inc (HWM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.45%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.86% , the current FCF yield is about -100.00% lower.
15.55
P/B
Median3y
8.75
Median5y
6.84
1.64
FCF Yield
Median3y
2.45
Median5y
1.86
Competitors Valuation Multiple
The average P/S ratio for HWM's competitors is 2.57, providing a benchmark for relative valuation. Howmet Aerospace Inc Corp (HWM) exhibits a P/S ratio of , which is -100.00% 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 79.46% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 33.67 to 55.13.
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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