Textron Inc (TXT) Fair Value & Analysis

Industrials · US · Market cap $15.6B · ISIN US8832031012

What is Textron Inc really worth?

Textron Inc TXT · US

Price$79.37

Fair Value$76.05

Upside−4.2%

Quality65/100

A solid business, currently priced close to our fair value of $76.05.

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Strengths

✓Healthy Growth (revenue 5y +4.9 %/yr)

✓Low debt · generates free cash flow

✓Ranks above peers (10/15)

Risks

!Thin margins · 6.2% net margin

!Moderate moat 51/100

!Weak on valuation: 28 out of 100

!Weak on dividend: 2 out of 100

For context

·0.10% dividend yield

Evidence: High Range $48.68 – $114.28

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from $77.49 to $76.05 (−1.9%) since Jul 16, 2026. Share price −10.9% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

The price sits close to our fair value, market and models broadly agree here, little valuation tension.
A fairly wide model range ($48.68 to $114.28) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $57.70 – $100.73 · fair‑value band $48.68 – $114.28 · the $79.37 price screens above the $76.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Textron Inc (TXT) currently trades at $79.37, while our model-based Fair Value estimate is $76.05, implying the stock looks roughly 4.4% fairly valued today. The Quality Score stands at 65/100 (solid quality), in the Industrials sector. Bull case: the Multiples group reads highest at a median of $90.04 per share, and 10 of the 24 models we run sit above the $79.37 price. Bear case: the Asset-Based group reads lowest at $30.34, and 14 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Textron Inc generated revenue of $15.2B at a net margin of 6.2%. Revenue grew 11.8% year over year. It earns a return on equity of 12.3%. Net debt stands at $2.3B. Fundamentals as of Aug 13, 2026

Our scenario range runs from $48.68 (bear case) to $114.28 (bull case); at $79.37, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −4%, TXT screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $3.51 per share, which is 4.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence

Highest evidence

FCF DCF best evidence $41.39 $61.48 $93.82 80

Growth DCF $43.27 $62.54 $91.83 78

Owner Earnings $43.99 $65.08 $99.03 76

All 24 models by family

DCF Models

FCF DCF best evidence $41.39 $61.48 $93.82 80

Owner Earnings $43.99 $65.08 $99.03 76

5Y Revenue Exit $46.71 $75.82 $114.34 72

5Y EBITDA Exit $58.66 $96.47 $141.79 74

5Y P/E Exit $54.01 $88.43 $125.28 70

10Y Revenue Exit $42.40 $67.72 $97.69 66

10Y EBITDA Exit $51.60 $81.47 $116.62 68

10Y P/E Exit $48.73 $76.12 $105.23 64

Earnings-Based

Graham-Dodd $36.02 $68.98 $86.03 66

EPV $45.78 $55.23 $63.50 74

Dividend Discount

Gordon GGM $1.00 $1.38 $1.77 69

DDM Multi-Stage $1.00 $1.39 $1.86 67

Multiples

P/E Multiple $83.42 $111.23 $139.03 63

P/S Multiple $67.53 $90.04 $112.55 58

P/B Multiple $67.53 $90.04 $112.55 55

EV/EBIT $80.68 $111.20 $141.73 66

EV/EBITDA $81.05 $111.70 $142.36 67

EV/Revenue $54.46 $82.47 $110.48 53

Asset-Based

NCAV (Graham) $22.64 $30.34 $45.29 54

Growth DCF

Growth DCF $43.27 $62.54 $91.83 78

Rev-Margin DCF $46.71 $76.54 $110.18 72

Economic Profit

Residual Income $41.47 $49.34 $110.58 70

ROIC Compounder $45.83 $57.27 $69.52 72

Growth Earnings

Growth-Adj P/E $59.81 $85.44 $111.07 67

Widest divergence: Multiples ($90.04) versus Dividend Discount ($1.38). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 15.1

P/S ratio 0.94 P/E × margin

EPS (TTM) $5.24 price ÷ EPS = P/E 15.1

Dividend yield 0.1% payout 1.5%

Net margin 6.2% FY2025

Return on equity 12.3% TTM

More key figures

Profitability

Return on assets (EBIT) 5.8% avg 5y

Operating margin 8.0% TTM

Growth

Revenue (TTM) $15.2B TTM

Revenue growth (YoY) +11.8% 3y avg +4.8%

EPS growth (YoY) +10.6%

Balance sheet & cash flow

Free cash flow $884M FY2025

Net debt $2.3B FY2025 · ≈ 2.6 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 62 · Market factors (momentum, volatility) 41

Profitability 42

Margins and returns on capital today

Quality Growth 48

Are margins and returns improving?

Cashflow 48

Earnings quality: real cash, not paper profit

Fin. Strength 68

Balance sheet, leverage, solvency risk

Investment 87

Disciplined investing over empire-building

Low Volatility 71

Calm price path (market factor)

Momentum 31

Price trend over the last 3–12 months (market factor)

52W Momentum 24

Distance to the 52-week high (market factor)

Net Issuance 100

Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Full company description

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft, as well as offers maintenance, inspection, and repair services; commercial parts; and advanced flight training devices. The Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks; plastic tanks for catalytic reduction systems and other fuel system components; lightweight and composite pentatonic battery systems for use in electric vehicles primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Textron Inc reported revenue of $14.8B in FY2025 versus $12.4B in FY2021, a compound +4.6%/yr. Reported net income was $921M in FY2025, compounding +5.4%/yr from FY2021.

Growth Quality 69/100

Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Latest Revenue (FY 2025)

$14.8B

Latest YoY

+8.0%

Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+4.8%

Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+4.9%

Avg. revenue growth/yr (40Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+3.3%

Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.

+8.4% (8.3 + 0.1)

Revenue +4.6%/yr

FY21 $12.4B

FY22 $12.9B

FY23 $13.7B

FY24 $13.7B

FY25 $14.8B

Net income +5.4%/yr

FY21 $746M

FY22 $861M

FY23 $921M

FY24 $824M

FY25 $921M

Character of growth · EPS growth decomposed (2014-2025) +6.2 % p.a.

Revenue per share +4.6 %

of which total revenue +0.3 % · buybacks/dilution +4.3 %

EBIT margin −1.0 %

Tax rate +0.5 %

Residual (interest, one-offs) +2.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Textron Inc · Fair Value
$76.05 −4%Fair Value
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<a href="https://www.fairvalue-calculator.com/stock/TXT" target="_blank" rel="nofollow noopener" style="display:inline-flex;align-items:center;gap:12px;box-sizing:border-box;font-family:system-ui,-apple-system,Segoe UI,Roboto,sans-serif;text-decoration:none;background:#0f1814;color:#eaf2ed;border:1px solid #2a3a30;border-radius:12px;padding:12px 16px;max-width:360px"><span style="line-height:1.35"><span style="font-size:12px;color:#9fb0a8">Textron Inc · Fair Value</span><br><b style="font-size:20px">$76.05</b> <span style="color:#e0816f;font-weight:700;font-size:14px">−4%</span></span><span style="font-size:11px;color:#7BB290;font-weight:700;margin-left:auto;text-align:right;line-height:1.3">Fair&nbsp;Value<br>Calculator&nbsp;→</span></a>

Cite: Fair Value Calculator (2026). "Textron Inc Fair Value". https://www.fairvalue-calculator.com/stock/TXT

Peer Group

Aerospace & Defense · 229 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%

Fair Value upside −4% · Top 25%

Return on equity (TTM) 12% · Above median

Return on assets 5% · Above median

Net margin (TTM) 6% · Below median

Operating margin (TTM) 8% · Below median

Revenue growth 12% · Above median

Dividend yield (TTM) 0.1% · Bottom 25%

Debt / equity 0.50× · Higher than 75% of peers

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 15.1× · Cheaper than 75% of peers

P/B 1.98× · Cheaper than median

P/S (TTM) 1.03× · Cheaper than 75% of peers

P/FCF 17.6× · Pricier than median

EV/EBITDA 10.4× · Cheaper than 75% of peers

PEG 1.15× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

This stock

Sector peers

VALUE28 · sector 0

FUTURE59 · sector 50

PAST49 · sector 38

HEALTH75 · sector 93

DIVIDEND2 · sector 16

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock	Price	Fair Value	vs Fair Value
General Electric Company GE	$335.71	$116.71	−65%
RTX Corporation RTX	$212.08	$88.37	−58%
Airbus SE AIR	€213.00	€117.01	−45%
Lockheed Martin Corporation LMT	$565.89	$419.01	−26%
Howmet Aerospace Inc HWM	$264.85	$50.43	−81%
General Dynamics Corporation GD	$379.32	$274.32	−28%
Northrop Grumman Corporation NOC	$545.57	$356.59	−35%
TransDigm Group TDG	$1,235	$571.03	−54%
L3Harris Technologies, Inc LHX	$262.82	$146.55	−44%
Thales S.A HO	€243.70	€171.13	−30%

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Frequently asked questions

Is Textron Inc (TXT) overvalued or undervalued?

As of Aug 13, 2026, our model estimates a fair value of $76.05 versus a price of $79.37, about −4% upside (fairly valued).

What is the fair value of TXT?

Our model-based fair value for Textron Inc is $76.05 (as of Aug 13, 2026), built from audited fundamentals. The current price: $79.37.

What is the quality score of TXT?

Textron Inc has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.

What is the revenue of Textron Inc (TXT)?

Textron Inc reported trailing-twelve-month revenue of about $15.2B (latest available figure, as of Aug 13, 2026).

What is the net profit margin of TXT?

The net profit margin of Textron Inc is about 6.2%, meaning it keeps roughly 6.2% of revenue as net income. Based on the latest reported figures.

Does Textron Inc pay a dividend?

Textron Inc currently shows a dividend yield of about 0.10% relative to its recent price (as of Aug 13, 2026).

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