Howmet Aerospace Inc · Aerospace & Defense

HWM

$269.68

C
Value CreationHigh MarginLow Volatility

As of: 2026-08-26 17:09:13 (KST)

-46.1%

Expected return

24%

Success probability

-48.4%

Downside risk

For informational purposes only.

Not investment advice.

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Investment Summary

Howmet Aerospace Inc in the Aerospace & Defense industry carries C grade, driven by a Monte Carlo rating of 11. With an expected return of -46.1% and a 24% chance of positive returns, the stock at $269.68 presents This assessment is based on 10,000 probabilistic scenarios, offering a robust view of the potential return distribution across varying market conditions.

Why This Valuation?

The Reverse DCF analysis places this stock in the "Expensive" zone. The implied growth rate (g_implied) of 81.0%, compared with the actual growth rate of 8.6%, reveals the market's pricing assumptions. The P50 intrinsic value sits at $152, offering a reference point against the current price. At $283, the Reverse-DCF implied probability of finishing above $283 stands at 0%.

Grade Explanation

This C rating (11) suggests caution. The expected return of -46.1% and 24% success probability are below our threshold for an attractive entry.

Monte Carlo Interpretation

The Monte Carlo distribution reveals a volatility of 2.0% — relatively low, meaning the simulated outcomes cluster tightly around the median. The P50 sits at -46.3%, with a +3.4% gap between P10 (-48.4%) and P75 (-45.0%). a negative skew suggests downside scenarios are more pronounced than upside ones

Risk Summary

In the worst 5% of scenarios, the 5th percentile value-at-risk is -48.4%. On the operating side, a solid 27.2% operating margin helps cushion downside scenarios. With a volatility of 2.0%, volatility risk is low at the current price of $270.

What is DCF (Discounted Cash Flow)?

DCF estimates a company's intrinsic value by discounting its future cash flows to present value. Modelvix uses Monte Carlo simulation to analyze thousands of scenarios.

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What is WACC (Weighted Average Cost of Capital)?

WACC is the average rate a company pays to finance its assets, used as the discount rate in DCF analysis. Modelvix simulates how WACC changes affect valuation.

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What is Terminal Value?

Terminal value represents the perpetual value of a business beyond the forecast period, often comprising the majority of DCF value. Modelvix analyzes terminal value uncertainty across growth scenarios.

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What is Reverse DCF?

Reverse DCF works backward from the current stock price to infer the growth rate the market expects, helping you assess whether a stock is fairly valued. Modelvix shows what growth assumptions the current price implies.

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