Textron Inc. (TXT) 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

+12.5%

$99.33

vs $88.28 price

Levered DCF

$107.88

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.84

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	17×	17.63×	17.41×	17.48×	23.18×	35.8×	12.67×	9.52×
P/B	1.99×	2.03×	2.32×	2.12×	2.46×	1.87×	1.84×	2.24×
P/S	1.06×	1.07×	1.18×	1.17×	1.35×	0.94×	0.75×	0.83×
EV / EBITDA	10.77×	12.08×	11.73×	11.16×	13.36×	15.98×	8.44×	7.21×
Gross margin	18.2%	18.3%	20.8%	20.7%	16.8%	13.4%	16.3%	17.0%
Operating margin	6.8%	6.2%	7.7%	6.9%	7.0%	0.0%	7.9%	7.9%
Net margin	6.2%	6.0%	6.7%	6.7%	6.0%	2.7%	6.0%	8.7%
Current ratio	1.84×	1.63×	1.79×	2.04×	2.37×	2.27×	1.8×	1.92×
Debt / equity	0.54×	0.55×	0.61×	0.55×	0.61×	0.81×	0.74×	0.73×
Interest coverage	7.94×	8.81×	13.68×	8.25×	6.08×	0×	6.27×	6.64×
Dividend yield	0.1%	0.1%	0.1%	0.1%	0.1%	0.2%	0.2%	0.2%
Payout ratio	2.1%	1.9%	1.7%	2.1%	2.4%	5.8%	2.5%	1.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.7%	11.4%	13.2%	12.1%	10.9%	5.3%	14.8%	23.5%
Return on invested capital	5.9%	5.8%	6.9%	5.9%	5.8%	0.0%	7.9%	8.8%
Return on assets	5.1%	4.9%	5.5%	5.3%	4.7%	2.0%	5.4%	8.6%
Free cash flow yield	5.6%	5.9%	5.3%	8.1%	2.7%	6.2%	7.3%	4.4%
Earnings yield	5.9%	5.6%	5.7%	5.7%	4.5%	2.8%	8.0%	10.5%
Enterprise value	$17.9B	$17.2B	$18.3B	$17B	$18.8B	$13.4B	$12.9B	$14.3B
Net debt / EBITDA	1.36×	1.77×	1.33×	1.25×	1.45×	2.94×	1.79×	1.35×
Cash conversion cycle (days)	114	127	121	115	120	124	111	112