Howmet Aerospace DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.02%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 2.5%

Last 24 Months Beta: 1.2

Historical Data

Revenue growth in the last 10 years (CAGR): 2.49%

Earnings growth in the last 10 years (CAGR): / (from -$941M to $1.508B)

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 0.92%

Future Assumptions

End of Year FCF growth: 4%

Growth until end of 2026: 4%

Growth until end of 2034: 4%

Perpetual growth: 3%

Net Debt: 2.471B

Outstanding Stock Options Present Value Assumption: $0.021B

Assumptions used for the Black & Scholes model:

• Stock Price: $236
• Strike Price: $23.27
• Time to expiration: 1.7 years
• Risk Free Rate: 4.02%
• Volatility: 29.7%

Restricted Stock Units Present Value Assumption: $0.495B

Stock Valuation based on these assumptions: $55

Last update 03/14/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Howmet Aerospace (HWM) and I don’t plan to add a position in the coming days.