Is Textron, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Textron, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, Textron appears to be fairly valued. The P/E ratio stands at 16, while the EV to EBITDA ratio is 13.37, and the Price to Book Value is 1.92. In comparison, a peer such as Textron's valuation shows a P/E of 17.37 and an EV to EBITDA of 14.32, suggesting that Textron is slightly below its peers in terms of valuation metrics.
In terms of recent performance, Textron's stock has underperformed against the S&P 500 over the past year, with a return of -9.92% compared to the S&P 500's 14.08%. However, over a five-year period, Textron has delivered a strong return of 124.32%, outpacing the S&P 500's 91.29%. This mixed performance highlights the company's potential but also suggests caution in its current valuation stance.