Last Price$124.4(0.1%)
Market Cap$50.5B
DCF value
$39.5
Overvalued (DCF value)
(68.3%)
Discount Rate
10.3%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Great
HWM DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 5,259.0 (62.9%) | 4,972.0 (5.5%) | 5,663.0 13.9% | 6,640.0 17.3% | 7,430.0 11.9% | 8,031.5 8.1% | 8,915.1 11.0% | 9,640.7 8.1% | 11,439.0 18.7% | 13,300.6 16.3% | 15,148.8 13.9% | 16,893.4 11.5% | 18,437.0 9.1% | 19,683.0 6.8% | 20,544.9 4.4% | 20,955.8 2.0% |
% margin | 626.0 11.9% | 748.0 15.0% | 919.0 16.2% | 1,203.0 18.1% | 1,633.0 22.0% | 1,068.0 13.3% | 1,185.5 13.3% | 1,282.0 13.3% | 1,521.1 13.3% | 1,768.7 13.3% | 2,014.4 13.3% | 2,246.4 13.3% | 2,451.7 13.3% | 2,617.3 13.3% | 2,732.0 13.3% | 2,786.6 13.3% |
NOPAT % effective tax rate | 772.4 14.7% | 595.6 12.0% | 711.2 12.6% | 943.9 14.2% | 1,363.8 18.4% | 891.9 11.1% | 990.0 11.1% | 1,070.6 11.1% | 1,270.3 11.1% | 1,477.1 11.1% | 1,682.3 11.1% | 1,876.1 11.1% | 2,047.5 11.1% | 2,185.9 11.1% | 2,281.6 11.1% | 2,327.2 11.1% |
% of revenue | 279.0 5.3% | 270.0 5.4% | 265.0 4.7% | 272.0 4.1% | 277.0 3.7% | 334.8 4.2% | 371.6 4.2% | 401.8 4.2% | 476.8 4.2% | 554.4 4.2% | 631.4 4.2% | 704.1 4.2% | 768.5 4.2% | 820.4 4.2% | 856.3 4.2% | 873.4 4.2% |
% of revenue | (267.0) (5.1%) | (199.0) (4.0%) | (193.0) (3.4%) | (219.0) (3.3%) | (321.0) (4.3%) | (295.2) (3.7%) | (327.7) (3.7%) | (354.3) (3.7%) | (420.4) (3.7%) | (488.9) (3.7%) | (556.8) (3.7%) | (620.9) (3.7%) | (677.7) (3.7%) | (723.5) (3.7%) | (755.1) (3.7%) | (770.2) (3.7%) |
% of revenue | (662.0) (12.6%) | (345.0) (6.9%) | (203.0) (3.6%) | (345.0) (5.2%) | 0.0 0.0% | (235.1) (2.9%) | (260.9) (2.9%) | (282.2) (2.9%) | (334.8) (2.9%) | (389.3) (2.9%) | (443.4) (2.9%) | (494.4) (2.9%) | (539.6) (2.9%) | (576.1) (2.9%) | (601.3) (2.9%) | (613.3) (2.9%) |
Free Cash Flow to Firm (FCFF) % of revenue | 122.4 2.3% | 321.6 6.5% | 580.2 10.2% | 651.9 9.8% | 1,319.8 17.8% | 696.4 8.7% | 773.0 8.7% | 835.9 8.7% | 991.9 8.7% | 1,153.3 8.7% | 1,313.5 8.7% | 1,464.8 8.7% | 1,598.7 8.7% | 1,706.7 8.7% | 1,781.4 8.7% | 1,817.1 8.7% |
% of FCFF used in calculation | 81.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.95 | 0.86 | 0.78 | 0.71 | 0.64 | 0.58 | 0.53 | 0.48 | 0.43 | 0.39 | ||||||
Discounted FCFF (DFCFF) | 543.1 | 667.0 | 653.8 | 703.1 | 741.0 | 764.9 | 773.2 | 764.8 | 740.1 | 700.1 |
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HWM DCF Value
DCF Value Calculation
as of Mar 07, 2025
Sum of DFCFF
% share of EV
7,051.2M
45.1%
Terminal Value (TV)
21.8B
Discounted TV
% share of EV
8,573.1M
54.9%
Total Debt
162.0M
16.0B
Shares outstanding
406.0M
FX rate
1.0
39.5
68.3% overvalued
Equity Value Bridge
HWM DCF Financials
Revenue
$7,430.0M -> $20.5B
10.7% CAGR
Operating Income
$1,633.0M -> $2,732.0M
5.3% CAGR
FCFF
$1,319.8M -> $1,781.4M
3.0% CAGR
HWM DCF sensitivity
DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
9.0%
$44.0
$46.0
$48.0
$50.0
$52.0
9.5%
$41.0
$43.0
$44.0
$46.0
$48.0
10.3%
$37.0
$38.0
$39.0
$41.0
$42.0
10.5%
$36.0
$37.0
$39.0
$40.0
$41.0
11.0%
$34.0
$35.0
$36.0
$37.0
$39.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
9.0%
(65.0%)
(63.0%)
(61.0%)
(60.0%)
(58.0%)
9.5%
(67.0%)
(65.0%)
(65.0%)
(63.0%)
(61.0%)
10.3%
(70.0%)
(69.0%)
(69.0%)
(67.0%)
(66.0%)
10.5%
(71.0%)
(70.0%)
(69.0%)
(68.0%)
(67.0%)
11.0%
(73.0%)
(72.0%)
(71.0%)
(70.0%)
(69.0%)
Explore more intrinsic value tools hub for HWM
Margin of safety
Peter Lynch charts
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Relative Value
Earnings growth model
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Intrinsic Value
Reverse DCF
FAQ
What is Howmet Aerospace Inc. DCF (discounted cash flow) valuation?
As of Mar 07, 2025, Howmet Aerospace Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $39.5. This suggests it may be overvalued by (68.3%) compared to its current price of around $124.4, using a WACC of 10.3% and growth rates of 2.0%.
What is Howmet Aerospace Inc. WACC?
As of Mar 07, 2025, Howmet Aerospace Inc.'s Weighted Average Cost of Capital (WACC) is approximately 10.3%.
What is Howmet Aerospace Inc. Enterprise Value?
As of Mar 07, 2025, Howmet Aerospace Inc.'s Enterprise Value (EV) is approximately $15.6B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.