TXT PE Ratio & Valuation,Is TXT Overvalued

TXT Relative Valuation

TXT'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, TXT is overvalued; if below, it's undervalued.

Historical Valuation

Textron Inc (TXT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.12 is considered Undervalued compared with the five-year average of 14.84. The fair price of Textron Inc (TXT) is between 141.89 to 172.09 according to relative valuation methord. Compared to the current price of 88.58 USD , Textron Inc is Undervalued By 37.57%.

Relative Value

Fair Zone

141.89-172.09

Current Price：88.58

37.57%

Undervalued

13.12

9.58

EV/EBITDA

Textron Inc. (TXT) has a current EV/EBITDA of 9.58. The 5-year average EV/EBITDA is 10.38. The thresholds are as follows: Strongly Undervalued below 8.24, Undervalued between 8.24 and 9.31, Fairly Valued between 11.45 and 9.31, Overvalued between 11.45 and 12.52, and Strongly Overvalued above 12.52. The current Forward EV/EBITDA of 9.58 falls within the Historic Trend Line -Fairly Valued range.

13.16

EV/EBIT

Textron Inc. (TXT) has a current EV/EBIT of 13.16. The 5-year average EV/EBIT is 14.01. The thresholds are as follows: Strongly Undervalued below 11.16, Undervalued between 11.16 and 12.59, Fairly Valued between 15.44 and 12.59, Overvalued between 15.44 and 16.87, and Strongly Overvalued above 16.87. The current Forward EV/EBIT of 13.16 falls within the Historic Trend Line -Fairly Valued range.

1.00

Textron Inc. (TXT) has a current PS of 1.00. The 5-year average PS is 1.06. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 0.94, Fairly Valued between 1.17 and 0.94, Overvalued between 1.17 and 1.29, and Strongly Overvalued above 1.29. The current Forward PS of 1.00 falls within the Historic Trend Line -Fairly Valued range.

10.75

P/OCF

Textron Inc. (TXT) has a current P/OCF of 10.75. The 5-year average P/OCF is 11.14. The thresholds are as follows: Strongly Undervalued below 8.16, Undervalued between 8.16 and 9.65, Fairly Valued between 12.62 and 9.65, Overvalued between 12.62 and 14.11, and Strongly Overvalued above 14.11. The current Forward P/OCF of 10.75 falls within the Historic Trend Line -Fairly Valued range.

16.09

P/FCF

Textron Inc. (TXT) has a current P/FCF of 16.09. The 5-year average P/FCF is 17.34. The thresholds are as follows: Strongly Undervalued below 9.95, Undervalued between 9.95 and 13.64, Fairly Valued between 21.03 and 13.64, Overvalued between 21.03 and 24.72, and Strongly Overvalued above 24.72. The current Forward P/FCF of 16.09 falls within the Historic Trend Line -Fairly Valued range.

Textron Inc (TXT) has a current Price-to-Book (P/B) ratio of 2.05. Compared to its 3-year average P/B ratio of 2.11 , the current P/B ratio is approximately -3.11% higher. Relative to its 5-year average P/B ratio of 2.18, the current P/B ratio is about -6.00% higher. Textron Inc (TXT) has a Forward Free Cash Flow (FCF) yield of approximately 4.53%. Compared to its 3-year average FCF yield of 5.30%, the current FCF yield is approximately -14.53% lower. Relative to its 5-year average FCF yield of 6.19% , the current FCF yield is about -26.83% lower.

2.05

P/B

Median3y

2.11

Median5y

2.18

4.53

FCF Yield

Median3y

5.30

Median5y

6.19

Competitors Valuation Multiple

The average P/S ratio for TXT's competitors is 27.41, providing a benchmark for relative valuation. Textron Inc Corp (TXT) exhibits a P/S ratio of 1.00, which is -96.36% above the industry average. Given its robust revenue growth of 5.11%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TXT increased by 15.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.31 to 19.13.

The secondary factor is the Revenue Growth, contributed 5.11%to the performance.

Overall, the performance of TXT in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.11%

3.43B → 3.60B

Revenue Growth

0.15%

6.51 → 6.52

Margin Expansion

10.52%

17.31 → 19.13

P/E Change

15.78%

76.51 → 88.58

Mkt Cap Growth

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Frequently Asked Questions

Is Textron Inc (TXT) currently overvalued or undervalued?

What is Textron Inc (TXT) fair value?

TXT'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. The fair price of Textron Inc (TXT) is between 141.89 to 172.09 according to relative valuation methord.

How does TXT's valuation metrics compare to the industry average?

What is the current P/B ratio for Textron Inc (TXT) as of Jan 09 2026?

As of Jan 09 2026, Textron Inc (TXT) has a P/B ratio of 2.05. This indicates that the market values TXT at 2.05 times its book value.

What is the current FCF Yield for Textron Inc (TXT) as of Jan 09 2026?

As of Jan 09 2026, Textron Inc (TXT) has a FCF Yield of 4.53%. This means that for every dollar of Textron Inc’s market capitalization, the company generates 4.53 cents in free cash flow.

What is the current Forward P/E ratio for Textron Inc (TXT) as of Jan 09 2026?

As of Jan 09 2026, Textron Inc (TXT) has a Forward P/E ratio of 13.12. This means the market is willing to pay $13.12 for every dollar of Textron Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Textron Inc (TXT) as of Jan 09 2026?

As of Jan 09 2026, Textron Inc (TXT) has a Forward P/S ratio of 1.00. This means the market is valuing TXT at $1.00 for every dollar of expected revenue over the next 12 months.

TXT Valuation