HWM Valuation

Howmet Aerospace Inc

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171.000

-2.25(-1.299%)1D

Overview
Forecast
Valuation
Earnings

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 44.78 is considered Overvalued compared with the five-year average of 28.44. The fair price of Howmet Aerospace Inc (HWM) is between 106.75 to 149.68 according to relative valuation methord. Compared to the current price of 173.25 USD , Howmet Aerospace Inc is Overvalued By 15.75%.

Relative Value

Fair Zone

106.75-149.68

Current Price：173.25

15.75%

Overvalued

43.86

Trailing

Forward

29.07

EV/EBITDA

Howmet Aerospace Inc. (HWM) has a current EV/EBITDA of 29.07. The 5-year average EV/EBITDA is 16.74. The thresholds are as follows: Strongly Undervalued below 6.63, Undervalued between 6.63 and 11.69, Fairly Valued between 21.79 and 11.69, Overvalued between 21.79 and 26.84, and Strongly Overvalued above 26.84. The current Forward EV/EBITDA of 29.07 falls within the Strongly Overvalued range.

33.10

EV/EBIT

Howmet Aerospace Inc. (HWM) has a current EV/EBIT of 33.10. The 5-year average EV/EBIT is 20.35. The thresholds are as follows: Strongly Undervalued below 9.87, Undervalued between 9.87 and 15.11, Fairly Valued between 25.59 and 15.11, Overvalued between 25.59 and 30.84, and Strongly Overvalued above 30.84. The current Forward EV/EBIT of 33.10 falls within the Strongly Overvalued range.

8.17

Howmet Aerospace Inc. (HWM) has a current PS of 8.17. The 5-year average PS is 3.52. The thresholds are as follows: Strongly Undervalued below 0.02, Undervalued between 0.02 and 1.77, Fairly Valued between 5.27 and 1.77, Overvalued between 5.27 and 7.01, and Strongly Overvalued above 7.01. The current Forward PS of 8.17 falls within the Strongly Overvalued range.

41.46

P/OCF

Howmet Aerospace Inc. (HWM) has a current P/OCF of 41.46. The 5-year average P/OCF is 21.81. The thresholds are as follows: Strongly Undervalued below 5.51, Undervalued between 5.51 and 13.66, Fairly Valued between 29.96 and 13.66, Overvalued between 29.96 and 38.11, and Strongly Overvalued above 38.11. The current Forward P/OCF of 41.46 falls within the Strongly Overvalued range.

42.28

P/FCF

Howmet Aerospace Inc. (HWM) has a current P/FCF of 42.28. The 5-year average P/FCF is 28.58. The thresholds are as follows: Strongly Undervalued below 11.25, Undervalued between 11.25 and 19.91, Fairly Valued between 37.24 and 19.91, Overvalued between 37.24 and 45.90, and Strongly Overvalued above 45.90. The current Forward P/FCF of 42.28 falls within the Overvalued range.

Howmet Aerospace Inc (HWM) has a current Price-to-Book (P/B) ratio of 14.10. Compared to its 3-year average P/B ratio of 7.70 , the current P/B ratio is approximately 83.22% higher. Relative to its 5-year average P/B ratio of 6.09, the current P/B ratio is about 131.41% 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 2.55%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.74% , the current FCF yield is about -100.00% lower.

13.81

P/B

Median3y

7.70

Median5y

6.09

1.46

FCF Yield

Median3y

2.55

Median5y

1.74

Competitors Valuation Multiple

The average P/S ratio for HWM's competitors is 7.01, providing a benchmark for relative valuation. Howmet Aerospace Inc Corp (HWM) exhibits a P/S ratio of 8.17, which is 16.45% above the industry average. Given its robust revenue growth of 9.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Northrop Grumman Corp

1.96

1.30%

84.83B

Performance Decomposition

Market capitalization of HWM increased by 77.04% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.15 to 19.82.

The secondary factor is the P/E Change, contributed 27.77%to the performance.

Overall, the performance of HWM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.20%

1.88B → 2.05B

Revenue Growth

40.07%

14.15 → 19.82

Margin Expansion

27.77%

39.02 → 49.85

P/E Change

77.04%