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 like Textron has a higher P/E ratio of 17.37 and an EV to EBITDA of 14.32, suggesting that Textron is positioned competitively within its industry.
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 the last five years, Textron has delivered a strong return of 124.32%, outpacing the S&P 500's 91.29%. This mixed performance, along with its current valuation ratios, reinforces the conclusion that Textron is fairly valued in the market.