The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $564 M
Debt : $3,470 M
EBITDA : $1,880 M
Net Debt (Debt - Cash): $2,906 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Aerospace & Defense
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 37.50
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $169 M
Average Revenue: $16,081 M
Free Cash Flow to Revenue : 1 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2023-12-31): $6,422 M
Revenue 4 Years Ago (2019-12-31): $13,875 M
Revenue Growth: -11%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2023-12-31): $410 M
Share Count 5 Years Ago (2019-12-31): $433 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $3.62
Dividend Per Share (DPS): $0
Payout Ratio: 7%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 2%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $136
52-Week Low: $63
Threshold Price (15% Above 52-Week Low): $72
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $45,496 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Howmet Aerospace Inc (HWM) stock.
Value-Trades has assined P/E value 12. Since current year earning per share is $3.62.
The fair value of Howmet Aerospace Inc (HWM) stock should be (12 x $3.62) = $43.44
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