Textron Inc (TXT) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Textron Inc stock $81.69, price $85.23, that is 4.2% below the price, quality 66 out of 100. Rating: fairly valued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range $57.68 – $100.70 · fair‑value band $53.15 – $114.02 · the $85.23 price screens above the $81.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 3, 2026.
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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.
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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.
Stock analysis
Textron Inc (TXT) currently trades at $85.23, while our model-based Fair Value estimate is $81.69, so the stock looks roughly fairly valued today (gap 4.3%).
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Valuation
Bull case: the Multiples group reads highest at a median of $101.85 per share, and 9 of the 24 models we run sit above the $85.23 price.
Bear case: the Asset-Based group reads lowest at $20.63, and 15 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $53.15 (bear) to $114.02 (bull), the price of $85.23 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap $14.7B Large · P/E ratio 15.3 · P/S ratio 0.95 · EPS (TTM) $5.56 · Dividend yield 0.1% · Net margin 6.3% · Return on equity 12.5% · Return on assets (EBIT) 5.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 15% below its 52-week high and 17% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −27% fair-value upside, at −4%, TXT screens cheaper than that median.
Fair Value models
Bear$53.15Fair Value $81.69Bull$114.02
Price $85.23 · Downside -4.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($4.65 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
SaleR Kerry ClarkDirector2,517 shares at $93.09$234,308May 6, 2026
BuyThomas A KennedyDirector10,300 shares at $95.98$988,594May 1, 2026
SaleE Robert LuponeEVP, General Counsel & Secy28,056 shares at $98.84$2.8MFeb 17, 2026
SaleMark S BamfordVP & Corporate Controller29,341 shares at $98.19$2.9MFeb 17, 2026
SaleScott C DonnellyExecutive Chairman, Director219,619 shares at $98.41$21.6MFeb 13, 2026
SaleJulie G DuffyEVP and CHRO19,857 shares at $98.70$2.0MFeb 13, 2026
SaleLisa M AthertonPresident and CEO, Director7,600 shares at $98.68$749,968Feb 13, 2026
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.0%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.8%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
Start year 2020 (pandemic). Over 10 years: +1.0% a year
Revenue growth 40 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+3.3%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+8.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.3%
Dividend (yield on the price)0.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.9.2% vs 7.4%, steady
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.8% → 8%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+6.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +3.9% a year for the price and +2.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate competitive positioning in aerospace is supported by a planned focus on aviation and defense after the industrial separation, while limited signals of durable advantage and thin governance detail form the main weakness.
Main risk: Uncertainty over US government funding for the MV-75 program could lead to unreimbursed costs or production delays hitting Textron's Bell segment revenues and margins.
Bull case: After separating its industrial segment Textron could secure multi-year funding commitments for MV-75 and expand commercial aviation sales to lessen reliance on single-program government contracts.
Bear case: Repeated funding shortfalls or program delays might force Textron to absorb substantial losses or scale back its defense aviation ambitions in the Bell unit.
Textron plans to separate its industrial segment and focus squarely on aerospace and defense. This could sharpen execution across its aviation and defense lines while highlighting their distinct strengths. At the same time it removes a layer of diversification that has historically smoothed results. Will the leaner structure drive faster progress in its core markets or increase exposure to their cycles?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Aerospace & Defense · 241 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score66 · Top 25%
Fair Value upside−4.2% · Above median
Profitability
Return on equity (12 months)12.5% · Above median
Return on assets5.1% · Above median
Net margin (12 months)6.3% · Below median
Operating margin (12 months)9.3% · Below median
Growth and dividend
Revenue growth (quarter YoY)4.1% · Below median
Dividend yield (12 months)0.1% · Bottom 25%
Balance sheet
Debt / equity0.50× · Highest 25%
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Textron Inc Fair Value". https://www.fairvalue-calculator.com/stock/TXT
Frequently asked questions
Is Textron Inc (TXT) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of $81.69 versus a price of $85.23, about 4% lower (fairly valued).
What is the fair value of TXT?
Our model-based fair value for Textron Inc is $81.69 (as of Nov 3, 2026), built from audited fundamentals. The current price: $85.23.
What is the quality score of TXT?
Textron Inc has a Quality Score of 66/100. 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 price target for Textron Inc (TXT)?
Our model-based price target is the fair value of $81.69 (as of Nov 3, 2026) from 24 valuation models. Cautious scenario $53.15, optimistic scenario $114.02. It is a calculation from audited fundamentals, not an analyst target.
What is the Textron Inc stock forecast for 2026?
Our models put fair value at $81.69, about 4% lower versus a price of $85.23 (fairly valued). Cautious scenario $53.15, optimistic scenario $114.02. The calculation is refreshed regularly with new filings.
What is the revenue of Textron Inc (TXT)?
Textron Inc reported trailing-twelve-month revenue of about $15.4B (latest available figure, as of Nov 3, 2026).
Does Textron Inc pay a dividend?
Textron Inc currently shows a dividend yield of 0.09% relative to its recent price (as of Nov 3, 2026).
What growth is priced into Textron Inc (TXT)?
For today's price to be fair in a discounted-cash-flow model, Textron Inc would have to grow free cash flow by +6.4 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.9 % per year. As of Nov 3, 2026.
What discount rate (WACC) does the fair value of TXT use?
Our models discount Textron Inc at 9.0 %: a base by market capitalisation (large), damped by beta 0.88, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Textron Inc that is +6.4 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has Textron Inc (TXT) delivered so far?
Over the past 5 years revenue at Textron Inc grew +4.9 % a year. The price currently implies +6.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Textron Inc (TXT) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Textron Inc (+6.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Textron Inc (TXT)?
The free-cash-flow yield on the price is 6.03 %: that much free cash flow Textron Inc produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Textron Inc (TXT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Textron Inc it is $81.69 per share (as of Nov 3, 2026), against a price of $85.23. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Textron Inc stock overvalued or undervalued in 2026?
As of Nov 3, 2026, TXT trades above its calculated fair value: price $85.23, fair value $81.69, a gap of about −4% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TXT?
No. The price is what the market pays today ($85.23); the fair value is what the company's own numbers justify ($81.69). For Textron Inc the two are $3.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Textron Inc worth?
The market values Textron Inc at about $14.7B (market capitalisation, as of Nov 3, 2026). Per share that is $85.23; our models calculate a fair value of $81.69 per share.
What do the bullish and bearish scenarios say about TXT?
Our models span a range for Textron Inc: cautious scenario $53.15, base $81.69, optimistic $114.02 per share (as of Nov 3, 2026, price $85.23). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TXT?
Textron Inc trades at a price-to-earnings ratio of 15.3 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $81.69 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 16.8. Other multiples: PEG 1.0, P/B 1.9, P/S 0.9, EV/EBITDA 9.8.
What is the PEG ratio of TXT?
The PEG ratio of Textron Inc is 1.00 (P/E divided by earnings growth, as of Nov 3, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Textron Inc (TXT)?
Balance-sheet figures for Textron Inc (as of Nov 3, 2026): return on equity 12.5%, debt of 0.50 per unit of equity. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is TXT from its 52-week high?
Textron Inc trades at $85.23, about 15% below its 52-week high of $100.70 and 17% above the low of $73.03 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $81.69 is for.
Which stocks are comparable to Textron Inc?
From the same area (Industrials) we also value General Electric Company, RTX Corporation, Airbus SE, Lockheed Martin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Textron Inc stock attractive at the current price?
The data as of Nov 3, 2026: price $85.23, calculated fair value $81.69 (−4%), Quality Score 66/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TXT calculated?
We run Textron Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $81.69, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Textron Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Textron Inc (TXT)?
The closing price on Nov 5, 2026 was $85.23. Our model-based fair value is $81.69, about 4% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Textron Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($53.15 to $114.02) leaves room in how you read the outcome.
Where does the earnings growth of Textron Inc (TXT) come from?
Earnings per share at Textron Inc grew +6.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.6 %, EBIT margin −1.0 %, tax rate +0.5 %, residual (interest, one-offs) +2.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Textron Inc
How large is the market capitalisation of Textron Inc (TXT)?
The market capitalisation of Textron Inc is $14.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Textron Inc (TXT)?
The price-to-sales ratio of Textron Inc is 0.95 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Textron Inc (TXT)?
Earnings per share at Textron Inc are $5.56 (price ÷ EPS = P/E 15.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Textron Inc (TXT)?
The dividend yield of Textron Inc is 0.1% (payout 1.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Textron Inc (TXT)?
The net margin of Textron Inc is 6.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Textron Inc (TXT)?
The return on equity (ROE) of Textron Inc is 12.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Textron Inc (TXT)?
On an EBIT basis the return on assets of Textron Inc is 5.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Textron Inc (TXT)?
The operating margin of Textron Inc is 9.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Textron Inc (TXT)?
Revenue at Textron Inc is growing +4.1% versus a year earlier (3y avg +4.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Textron Inc (TXT)?
Earnings per share at Textron Inc are growing +19.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Textron Inc (TXT) carry?
The net debt of Textron Inc is $2.3B (fiscal year 2025, ≈ 2.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 3, 2026