Textron Inc.

LSE:0LF0 Stock Report

Market Cap: US$14.3b

Textron Valuation

Is 0LF0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0LF0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LF0 ($76.73) is trading below our estimate of fair value ($149.41)

Significantly Below Fair Value: 0LF0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LF0?

Key metric: As 0LF0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LF0. This is calculated by dividing 0LF0's market cap by their current earnings.
What is 0LF0's PE Ratio?
PE Ratio16.2x
EarningsUS$883.00m
Market CapUS$14.33b

Price to Earnings Ratio vs Peers

How does 0LF0's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LF0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.4x
BA. BAE Systems
18.8x8.0%UK£34.6b
BAB Babcock International Group
13.1x14.2%UK£2.5b
RR. Rolls-Royce Holdings
20.9x-0.9%UK£48.6b
QQ. QinetiQ Group
16.7x15.1%UK£2.3b
0LF0 Textron
16.2x9.2%US$14.3b

Price-To-Earnings vs Peers: 0LF0 is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does 0LF0's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0LF0 16.2xIndustry Avg. 24.7xNo. of Companies8PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LF0 is good value based on its Price-To-Earnings Ratio (16.2x) compared to the European Aerospace & Defense industry average (24.7x).

Price to Earnings Ratio vs Fair Ratio

What is 0LF0's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0LF0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.2x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: 0LF0 is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0LF0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$76.73
US$97.16
+26.6%
10.0%US$118.00US$79.00n/a16
Dec ’25US$85.63
US$99.67
+16.4%
10.2%US$118.00US$79.00n/a15
Nov ’25US$81.60
US$99.27
+21.6%
10.4%US$118.00US$79.00n/a15
Oct ’25US$87.82
US$103.00
+17.3%
8.6%US$121.00US$87.00n/a15
Sep ’25US$89.54
US$103.53
+15.6%
8.3%US$121.00US$87.00n/a15
Aug ’25US$90.16
US$103.53
+14.8%
8.3%US$121.00US$87.00n/a15
Jul ’25US$85.57
US$99.05
+15.8%
10.5%US$121.00US$84.00n/a15
Jun ’25US$87.16
US$98.92
+13.5%
10.7%US$121.00US$82.00n/a15
May ’25US$85.03
US$98.08
+15.4%
10.6%US$121.00US$82.00n/a16
Apr ’25US$95.99
US$95.90
-0.1%
9.0%US$110.00US$81.00n/a16
Mar ’25US$88.69
US$92.77
+4.6%
7.5%US$105.00US$81.00n/a16
Feb ’25US$85.42
US$92.03
+7.7%
7.4%US$104.00US$81.00n/a16
Jan ’25US$80.44
US$88.38
+9.9%
6.4%US$102.00US$77.00n/a15
Dec ’24US$78.21
US$87.91
+12.4%
7.1%US$102.00US$73.00US$85.6315
Nov ’24US$75.88
US$86.74
+14.3%
8.9%US$103.00US$69.00US$81.6016
Oct ’24US$78.26
US$85.86
+9.7%
7.7%US$100.00US$69.00US$87.8215
Sep ’24US$78.04
US$85.86
+10.0%
7.7%US$100.00US$69.00US$89.5415
Aug ’24US$77.89
US$85.24
+9.4%
8.6%US$100.00US$69.00US$90.1614
Jul ’24US$68.05
US$80.95
+19.0%
7.8%US$93.00US$69.00US$85.5714
Jun ’24US$62.22
US$80.95
+30.1%
7.8%US$93.00US$69.00US$87.1614
May ’24US$67.23
US$82.78
+23.1%
5.7%US$93.00US$76.00US$85.0312
Apr ’24US$70.57
US$83.19
+17.9%
5.6%US$93.00US$76.00US$95.9912
Mar ’24US$73.38
US$83.19
+13.4%
5.6%US$93.00US$76.00US$88.6912
Feb ’24US$73.18
US$83.19
+13.7%
5.6%US$93.00US$76.00US$85.4212
Jan ’24US$70.25
US$81.08
+15.4%
7.8%US$93.00US$70.90US$80.4412
Dec ’23US$71.17
US$80.16
+12.6%
6.8%US$86.00US$70.90US$78.2112

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 13:27
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/28
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Textron Inc. is covered by 38 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullAlembic Global Advisors
null nullAlembic Global Advisors
null nullArgus Research Company