Howmet Aerospace Valuation
| HWM Stock | USD 131.67 0.31 0.23% |
At this time, the firm appears to be overvalued. Howmet Aerospace retains a regular Real Value of $107.65 per share. The prevalent price of the firm is $131.67. Our model calculates the value of Howmet Aerospace from evaluating the firm fundamentals such as Return On Asset of 0.0959, return on equity of 0.27, and Current Valuation of 56.42 B as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Howmet Aerospace's valuation include:
Price Book 11.8815 | Enterprise Value | Enterprise Value Ebitda 30.6281 | Price Sales 7.1945 | Forward PE 39.6825 |
Overvalued
Today
Please note that Howmet Aerospace's price fluctuation is very steady at this time. Calculation of the real value of Howmet Aerospace is based on 3 months time horizon. Increasing Howmet Aerospace's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Howmet stock is determined by what a typical buyer is willing to pay for full or partial control of Howmet Aerospace. Since Howmet Aerospace is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Howmet Stock. However, Howmet Aerospace's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 131.67 | Real 107.65 | Target 124.51 | Hype 131.98 | Naive 132.69 |
The intrinsic value of Howmet Aerospace's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Howmet Aerospace's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Howmet Aerospace helps investors to forecast how Howmet stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Howmet Aerospace more accurately as focusing exclusively on Howmet Aerospace's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Howmet Aerospace's intrinsic value based on its ongoing forecasts of Howmet Aerospace's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Howmet Aerospace's closest peers.
Howmet Aerospace Cash |
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Howmet Valuation Trend
Knowing Howmet Aerospace's actual value is paramount for traders when making sound investment determinations. Using both Howmet Aerospace's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Howmet Revenue by Product
Howmet Aerospace Total Value Analysis
Howmet Aerospace is currently anticipated to have company total value of 56.42 B with market capitalization of 53.45 B, debt of 6 M, and cash on hands of 791 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Howmet Aerospace fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
56.42 B | 53.45 B | 6 M | 791 M |
Howmet Aerospace Investor Information
About 94.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.8. Howmet Aerospace last dividend was issued on the 7th of February 2025. The entity had 1334:1000 split on the 1st of November 2016. Based on the measurements of operating efficiency obtained from Howmet Aerospace's historical financial statements, Howmet Aerospace is performing exceptionally good at the present time. It has a great chance to report excellent financial results in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.23 | 0.2198 |
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| Total Cash From Operating Activities | 873.2 M | 1.3 B |
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Howmet Aerospace Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Howmet Aerospace has an asset utilization ratio of 70.63 percent. This suggests that the Company is making $0.71 for each dollar of assets. An increasing asset utilization means that Howmet Aerospace is more efficient with each dollar of assets it utilizes for everyday operations.Howmet Aerospace Ownership Allocation
Howmet Aerospace has a total of 405.02 Million outstanding shares. The majority of Howmet Aerospace outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Howmet Aerospace to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Howmet Aerospace. Please pay attention to any change in the institutional holdings of Howmet Aerospace as this could imply that something significant has changed or is about to change at the company. Please note that on February 21, 2025, Senator Ashley Moody of US Senate acquired $50k to $100k worth of Howmet Aerospace's common stock.Howmet Aerospace Profitability Analysis
The company reported the last year's revenue of 7.43 B. Total Income to common stockholders was 1.16 B with profit before taxes, overhead, and interest of 2.29 B.Howmet Aerospace Past Distributions to stockholders
About Howmet Aerospace Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Howmet Aerospace. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Howmet Aerospace based exclusively on its fundamental and basic technical indicators. By analyzing Howmet Aerospace's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Howmet Aerospace's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Howmet Aerospace. We calculate exposure to Howmet Aerospace's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Howmet Aerospace's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.3 B | 2.4 B | |
| Pretax Profit Margin | 0.19 | 0.20 | |
| Operating Profit Margin | 0.22 | 0.23 | |
| Net Profit Margin | 0.16 | 0.16 | |
| Gross Profit Margin | 0.31 | 0.18 |
A single share of Howmet Aerospace represents a small ownership stake in the entity. As a stockholder of Howmet, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Howmet Aerospace Dividends Analysis For Valuation
At this time, Howmet Aerospace's Dividend Payout Ratio is very stable compared to the past year. As of the 20th of March 2025, Dividend Paid And Capex Coverage Ratio is likely to grow to 3.17, though Dividends Paid is likely to grow to (103.5 M). . At this time, Howmet Aerospace's Retained Earnings are very stable compared to the past year. As of the 20th of March 2025, Price Earnings Ratio is likely to grow to 40.47, while Retained Earnings Total Equity is likely to drop about 878.9 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -109 M | -103.5 M | |
| Dividend Payout Ratio | 0.09 | 0.10 | |
| Dividend Paid And Capex Coverage Ratio | 3.02 | 3.17 |
There are various types of dividends Howmet Aerospace can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Howmet shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Howmet Aerospace directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Howmet pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Howmet Aerospace by the value of the dividends paid out.
Howmet Aerospace Growth Indicators
Investing in growth stocks can be very risky. If the company such as Howmet Aerospace does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 410 M | |
| Quarterly Earnings Growth Y O Y | 0.37 | |
| Forward Price Earnings | 39.6825 |
Howmet Aerospace Current Valuation Indicators
Howmet Aerospace's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Howmet Aerospace's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Howmet Aerospace, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Howmet Aerospace's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Howmet Aerospace's worth.When determining whether Howmet Aerospace is a strong investment it is important to analyze Howmet Aerospace's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Howmet Aerospace's future performance. For an informed investment choice regarding Howmet Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Howmet Aerospace. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. To learn how to invest in Howmet Stock, please use our How to Invest in Howmet Aerospace guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Howmet Aerospace. If investors know Howmet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Howmet Aerospace listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.37 | Dividend Share 0.26 | Earnings Share 2.81 | Revenue Per Share | Quarterly Revenue Growth 0.092 |
The market value of Howmet Aerospace is measured differently than its book value, which is the value of Howmet that is recorded on the company's balance sheet. Investors also form their own opinion of Howmet Aerospace's value that differs from its market value or its book value, called intrinsic value, which is Howmet Aerospace's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Howmet Aerospace's market value can be influenced by many factors that don't directly affect Howmet Aerospace's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Howmet Aerospace's value and its price as these two are different measures arrived at by different means. Investors typically determine if Howmet Aerospace is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Howmet Aerospace's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.