Value Sense
HWM
Howmet Aerospace Inc. (HWM)
Last Price$124.4(0.1%)
Market Cap$50.5B
WACC
10.3%
Cost of Equity
10.3%
Cost of Debt
534.0%
Debt to Equity
0.0%
Beta
1.0
Stock quality
7/10
Great
HWM
is 51.8% overvalued
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HWM WACC

Recent WACC calculation

as of Mar 07, 2025
Cost of Equity
% share of Total Capital
10.3%
100.0%
Risk-free rate
4.3%
Beta
1.3
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
534.0%
0.0%
Average Cost of Debt
666.7%
Effective Tax Rate
19.9%
WACC
10.3%

WACC dynamics

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HWM Cost of Equity

Recent Cost of Equity calculation

as of Mar 07, 2025
Risk-free rate
4.3%
Beta
1.3
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
10.3%

Cost of Equity dynamics

HWM vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Howmet Aerospace Inc. logo
Howmet Aerospace Inc.HWM
10.3%
11.9%
53.5%
15.5%
Median Peer Set
9.2%
4.9%
15.7%
12.7%
Ingersoll Rand Inc. logo
Ingersoll Rand Inc.IR
11.0%
5.2%
8.3%
11.6%
Parker-Hannifin Corporation logo
Parker-Hannifin CorporationPH
9.9%
4.5%
36.4%
14.3%
AMETEK, Inc. logo
AMETEK, Inc.AME
9.5%
5.2%
4.4%
19.8%
Rockwell Automation, Inc. logo
Rockwell Automation, Inc.ROK
9.4%
(8.8%)
(25.2%)
11.5%
Emerson Electric Co. logo
Emerson Electric Co.EMR
9.2%
15.3%
(85.1%)
11.3%
Eaton Corporation plc logo
Eaton Corporation plcETN
9.1%
11.8%
30.4%
13.9%
Roper Technologies, Inc. logo
Roper Technologies, Inc.ROP
9.1%
13.9%
11.5%
22.0%
Illinois Tool Works Inc. logo
Illinois Tool Works Inc.ITW
8.6%
(1.3%)
20.6%
21.9%
Cummins Inc. logo
Cummins Inc.CMI
7.8%
0.1%
446.6%
11.6%
Otis Worldwide Corporation logo
Otis Worldwide CorporationOTIS
7.2%
0.4%
19.9%
11.5%

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FAQ

What is Howmet Aerospace Inc.'s discount rate as of Mar 07, 2025?

As of Mar 07, 2025, Howmet Aerospace Inc.'s discount rate is 10.33%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Howmet Aerospace Inc.'s capital structure and risk profile.

What is Howmet Aerospace Inc.'s weighted average cost of capital (WACC)?

Howmet Aerospace Inc.'s WACC as of Mar 07, 2025, is 10.33%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Howmet Aerospace Inc.'s cost of equity?

Howmet Aerospace Inc.'s cost of equity is 10.3%, as of Mar 07, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.