What Is TXT Fair Value?
Textron (TXT) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Textron (TXT) has a composite fair value estimate of $72.94 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $74.44, suggesting the stock is fair value by 2.0%.
Data as of October 14, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$72.94
vs. current price of $74.44(-2.0%)
How Is TXT Fair Value Calculated?
Four independent models estimate what TXT is worth. Each uses different inputs and assumptions. The composite blends them by weight.
TXT Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$87.17
+17.1%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$1.65
-97.8%Overvalued
Inputs used
TXT Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$82.55
+10.9%Fair Value
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$64.65
-13.1%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $74.44 is 17.1% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $752.0M | $695.4M |
| Year 2 | $818.6M | $700.1M |
| Year 3 | $891.1M | $704.8M |
| Year 4 | $970.1M | $709.5M |
| Year 5 | $1.06B | $714.3M |
| Year 6 | $1.15B | $719.1M |
| Year 7 | $1.25B | $723.9M |
| Year 8 | $1.36B | $728.8M |
| Year 9 | $1.48B | $733.7M |
| Year 10 | $1.61B | $738.6M |
| Terminal Value | $29.37B | $13.44B |
What Are TXT's Key Financial Metrics?
Earnings & Growth
Current Price
$74.44
EPS (TTM)
$5.31
Forward P/E
10.3
Profit Margin
6.1%
Cash & Balance Sheet
Free Cash Flow
452.8M
EBITDA
1.7B
Book Value
$46.84
Total Debt
4.2B
What Do Analysts Say About TXT?
Low
$86.00
Average
$100.27
High
$115.00
Upside
+34.7%
TXT Fair Value FAQ
What is the fair value of TXT?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), TXT's estimated fair value is $72.94. The stock is currently trading at $74.44, which makes it fair value by our analysis.
How is TXT's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is TXT overvalued or undervalued?
Based on our analysis, TXT is fair value. The current price of $74.44 is 2.0% above our estimated fair value of $72.94.
What do Wall Street analysts say about TXT?
15 analysts cover Textron with a consensus rating of "Buy." The average price target is $100.27, ranging from $86.00 to $115.00. This implies 34.7% upside from the current price.