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Stocks TXT DCF valuation

DCF valuation

What is Textron Inc worth?

With the base-case assumptions below, a discounted cash flow model on Textron Inc's reported free cash flow gives $103.89 per share. The share price was $76.59 on September 25, 2026, 26% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$929M
Average free cash flow, last 5 years
$960M
Cash
$1.61B
balance sheet of July 4, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
180,258,000
Revenue growth per year, last 5 years
4.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear0.0%1.0%2.0%10.0%$67.55-12%
Base5.0%4.0%2.5%9.0%$103.89+36%
Bull10.0%6.5%3.0%8.0%$171.74+124%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$129.89$137.81$147.48$159.57$175.12
8.0%$110.51$115.64$121.70$128.98$137.88
9.0%$96.33$99.84$103.89$108.61$114.20
10.0%$85.53$88.02$90.85$94.08$97.81
11.0%$77.02$78.85$80.90$83.20$85.80

Where the presets come from

Base: years 1 to 5 grow at Textron Inc's revenue growth rate over the last 5 fiscal years (4.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Textron Inc company page