Howmet Aerospace Inc. logo HWM - Howmet Aerospace Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 20
HOLD 3
SELL 1
STRONG
SELL
0
| PRICE TARGET: $297.36 DETAILS
HIGH: $330.00
LOW: $228.00
MEDIAN: $300.00
CONSENSUS: $297.36
UPSIDE: 10.72%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 70% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 117.8% above fair value
Current Price $268.57
Bear Case $90.62 66.3% downside ($90.62 - $268.57) / $268.57 = -66.3% 6% stage 1 growth, 11% discount
Fair Value $123.32 54.1% downside ($123.32 - $268.57) / $268.57 = -54.1% 9% stage 1 growth, 11% discount
Bull Case $154.95 42.3% downside ($154.95 - $268.57) / $268.57 = -42.3% 12% stage 1 growth, 11% discount

Adjust Assumptions

9.4%
11.0%
3.0%

Key Value Driver

FCF growth rate (9% base case)

Terminal Value % of EV 38%
Implied Market Multiple 79.8x
Market is pricing in (growth) 27.4% vs our 9.4% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $297.36 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $123.32 per share.

Warnings

Wall Street's average price target is $297.36 (from 24 analysts). Our estimate is 78% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions