Howmet Aerospace Inc. (HWM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-50.0%

$106.05

vs $212.18 price

Levered DCF

$112.94

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

8.51

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	54.97×	38.65×	29.25×	35.19×	53.05×	59.46×	28.49×	12.49×
P/B	15.47×	9.8×	5.53×	4.55×	3.9×	3.47×	2.9×	1.44×
P/S	10.04×	6.01×	3.36×	2.9×	2.75×	2.36×	1.88×	0.57×
EV / EBITDA	35.65×	25.8×	17.43×	18.07×	20.29×	19.28×	21.35×	6.65×
Gross margin	34.2%	27.6%	24.3%	23.9%	22.8%	21.7%	22.8%	14.6%
Operating margin	24.8%	22.5%	18.8%	18.3%	17.4%	16.1%	16.7%	9.6%
Net margin	18.3%	15.5%	11.5%	8.3%	5.2%	4.0%	6.6%	4.6%
Current ratio	2.13×	2.17×	1.86×	2.12×	2.18×	2.21×	1.42×	1.87×
Debt / equity	0.57×	0.76×	0.95×	1.19×	1.24×	1.46×	1.35×	1.14×
Interest coverage	13.55×	9.19×	5.71×	4.52×	3.34×	2.23×	3.51×	3.58×
Dividend yield	0.2%	0.2%	0.3%	0.3%	0.1%	0.1%	0.4%	1.5%
Payout ratio	12.0%	9.4%	9.5%	9.4%	7.4%	5.2%	12.1%	18.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	28.2%	25.4%	18.9%	13.0%	7.4%	5.9%	10.2%	11.5%
Return on invested capital	17.5%	15.5%	11.0%	9.1%	7.7%	8.3%	4.9%	6.4%
Return on assets	13.5%	11.0%	7.3%	4.6%	2.5%	1.8%	2.7%	3.4%
Free cash flow yield	1.7%	2.2%	3.1%	3.3%	1.8%	-2.1%	-1.3%	-6.8%
Earnings yield	1.8%	2.6%	3.4%	2.9%	1.9%	1.7%	3.5%	8.0%
Enterprise value	$85.1B	$47.5B	$25.5B	$19.9B	$17.3B	$16B	$18B	$12.1B
Net debt / EBITDA	0.97×	1.58×	2.2×	3.17×	4.25×	4.34×	5.49×	2.23×
Cash conversion cycle (days)	103	95	95	89	95	104	90	50