Market Pulse44Neutral

Howmet Aerospace Inc.Opportunity Rank #224(HWM) Intrinsic Value & DCF Analysis (2026)

Sector: Industrials

Current Price

$272.43

Last updated: Jul 20, 2026

Price vs Intrinsic Value

$272.43
Price
$66.93
Intrinsic Value
Overvalued by 75%MOS: $53.54

Fundamental Score

47/100
Bearish

Weighted across 6 signals

Narrative Score

59/100
Improving

No change vs previous

Trend Score

69/100
Constructive

As of 2026-07-17

The intrinsic value of Howmet Aerospace Inc. (HWM) is estimated at $66.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $272.43, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -1.78% long-term growth rate and a 9.34% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Howmet Aerospace Inc. (HWM) is estimated at $66.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $272.43, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -1.78% long-term growth rate and a 9.34% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$66.93
-75.43% downside
20% margin of safety: $53.54
Years: 10Growth Rate: -1.78%
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Capital Efficiency

Average Quarterly ROIC
6.04%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

47/100
BearishWeighted across 6 signals
DCF Discount
75.4% premium to price
0
FCF Yield
2.5% trailing FCF yield
13
ROIC vs WACC
ROIC 6.0% vs WACC 9.0% (0.7x)
34
Net Debt / FCF
0.8x net debt to FCF
84
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
58.2% 5Y FCF CAGR
100
Strengths: Net Debt / FCF, Buybacks. Concerns: DCF Discount, FCF Yield.

Narrative Details

59/100
Improving
Vs 6-Month Baseline:Below Avg (31st pct)Weighted across 4 recent drivers
Trend: StableConfidence: 89%Updated: 2d ago
Sources: 45 (36 News · 9 Analyst)
Drivers(last 30 days)
31 news sentiment+0.8
4 regulatory scrutiny+0.1
Upgrade headlines+0.0
9 analyst reiterations0.0

Trend Details

69/100
ConstructiveAs of 2026-07-17310 daily bars used
Distance from 52-Week High-3.8%
6M Relative Strength vs SPY+16.0%
21 EMA vs 50 EMA+2.4%
Price vs 21 EMA52 · +0.3%
Price vs 50 EMA63 · +2.7%
21 EMA vs 50 EMA69 · +2.4%
3M RS vs SPY66 · +4.1%
6M RS vs SPY86 · +16.0%
Distance from 52W High92 · -3.8%

Investment Coach

Updating... 38d ago
AVOIDConfidence: 70%
Thesis
Howmet Aerospace Inc. is significantly overvalued with its current price approximately 80% above the estimated fair value, and its returns are trailing the estimated cost of capital. Despite some positive free cash flow growth and buybacks, the overall fundamentals remain bearish with a negative spread between ROIC and WACC.
Key Risk
The key risk is that the company's return on invested capital remains below its weighted average cost of capital, indicating potential value destruction.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • Sustained improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative trend or score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -1.78%5 Year CAGR: 33.36%

Free Cash Flow (in millions)

TTM202520242023202220212020201920182017201620152014
$2,733$2,337$1,619$1,120$926$648$276$992$985$1,297$1,998$2,762$2,893

How Intrinziq Estimates Fair Value

Intrinziq estimates Howmet Aerospace Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Howmet Aerospace Inc.Industrials

Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, and originally established in 1888 as Arconic Inc., is a global leader in providing sophisticated engineered solutions. The company caters to the aerospace and transportation sectors across a wide international footprint, including key markets such as the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, and China. Its business operations are structured into four main segments: Engine Products: This division manufactures critical components like airfoils and seamless rolled rings, primarily utilized in aircraft engines and industrial gas turbines, alongside various rotating and structural parts. Fastening Systems: This segment specializes in producing aerospace-grade fastening systems, as well as fasteners for commercial transportation, general industrial applications, and other uses. Engineered Structures: Responsible for supplying titanium ingots and mill products for aerospace and defense applications, this segment also provides aluminum and nickel forgings, and precision machined components and assemblies. Forged Wheels: This segment focuses on offering forged aluminum wheels and associated products specifically for the heavy-duty truck and commercial transportation markets.