Is Textron, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Textron, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 16, an EV to EBITDA of 13.37, and a Price to Book Value of 1.92. In comparison, its peer, Northrop Grumman, has a P/E of 17.37 and an EV to EBITDA of 14.32, suggesting that Textron is slightly more favorably priced in terms of earnings and value.
Despite the recent changes in valuation, Textron's stock has shown resilience, with a year-to-date return of 9.71%, although it lags behind the S&P 500's return of 12.22% over the same period. This performance, combined with its fair valuation, suggests that while Textron may not be undervalued, it also does not appear to be overvalued at this time.