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 12.59 is considered Undervalued compared with the five-year average of 14.90. The fair price of Textron Inc (TXT) is between 138.44 to 168.28 according to relative valuation methord. Compared to the current price of 83.70 USD , Textron Inc is Undervalued By 39.54%.
Relative Value
Fair Zone
138.44-168.28
Current Price：83.70
39.54%
Undervalued
12.50
PE
1Y
3Y
5Y
Trailing
Forward
9.29
EV/EBITDA
Textron Inc. (TXT) has a current EV/EBITDA of 9.29. The 5-year average EV/EBITDA is 10.39. The thresholds are as follows: Strongly Undervalued below 8.26, Undervalued between 8.26 and 9.32, Fairly Valued between 11.45 and 9.32, Overvalued between 11.45 and 12.51, and Strongly Overvalued above 12.51. The current Forward EV/EBITDA of 9.29 falls within the Undervalued range.
12.53
EV/EBIT
Textron Inc. (TXT) has a current EV/EBIT of 12.53. The 5-year average EV/EBIT is 14.03. The thresholds are as follows: Strongly Undervalued below 11.17, Undervalued between 11.17 and 12.60, Fairly Valued between 15.46 and 12.60, Overvalued between 15.46 and 16.89, and Strongly Overvalued above 16.89. The current Forward EV/EBIT of 12.53 falls within the Undervalued range.
0.96
PS
Textron Inc. (TXT) has a current PS of 0.96. The 5-year average PS is 1.06. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 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 0.96 falls within the Historic Trend Line -Fairly Valued range.
10.34
P/OCF
Textron Inc. (TXT) has a current P/OCF of 10.34. The 5-year average P/OCF is 11.14. The thresholds are as follows: Strongly Undervalued below 8.14, Undervalued between 8.14 and 9.64, Fairly Valued between 12.64 and 9.64, Overvalued between 12.64 and 14.15, and Strongly Overvalued above 14.15. The current Forward P/OCF of 10.34 falls within the Historic Trend Line -Fairly Valued range.
15.47
P/FCF
Textron Inc. (TXT) has a current P/FCF of 15.47. The 5-year average P/FCF is 17.39. The thresholds are as follows: Strongly Undervalued below 9.88, Undervalued between 9.88 and 13.64, Fairly Valued between 21.15 and 13.64, Overvalued between 21.15 and 24.90, and Strongly Overvalued above 24.90. The current Forward P/FCF of 15.47 falls within the Historic Trend Line -Fairly Valued range.
Textron Inc (TXT) has a current Price-to-Book (P/B) ratio of 1.97. Compared to its 3-year average P/B ratio of 2.12 , the current P/B ratio is approximately -6.97% higher. Relative to its 5-year average P/B ratio of 2.17, the current P/B ratio is about -9.48% higher. Textron Inc (TXT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.37%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.22% , the current FCF yield is about -100.00% lower.
1.95
P/B
Median3y
2.12
Median5y
2.17
4.71
FCF Yield
Median3y
5.37
Median5y
6.22
Competitors Valuation Multiple
The average P/S ratio for TXT's competitors is , providing a benchmark for relative valuation. Textron Inc Corp (TXT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.11%, 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 TXT increased by 8.69% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.43B to 3.60B.
The secondary factor is the P/E Change, contributed 3.43%to the performance.
Overall, the performance of TXT in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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