GE Aerospace (GE) is overvalued and Howmet Aerospace Inc (HWM) is overvalued.
Both trade above our estimate of their intrinsic value. HWM is the closer of the two: -190%, against -329% for GE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.1% (average of 3 methods) values the shares at $74.38; the price of $319.22 is 329% above that value, and 68% of that value comes from beyond year five.
Leak Score 51/100 on 9 of 12 signals
Discounting its cash flows at 10.5% (average of 3 methods) values the shares at $77.60; the price of $225.36 is 190% above that value, and 72% of that value comes from beyond year five.
Leak Score 67/100 on 10 of 12 signals
| Metric | GE | HWM |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $319.22 | $225.36 |
| Intrinsic value | $74.38 | $77.60 |
| Margin of safety | -329% | -190% |
| Leak Score | 51/100 (9/12) | 67/100 (10/12) |
| Market cap | $331.2B | $89.9B |
| Revenue growth, 5 years | -9.6% | 9.4% |
| Operating margin | 18.5% | 27.3% |
| Net margin | 17.7% | 20.5% |
| Return on equity | 48.8% | 34.7% |
| Debt to equity | 1.15 | 0.81 |
| P/E | 37.6x | 48.6x |
| Forward P/E | 35.1x | 34.6x |
| P/B | 18.8x | 15.7x |
| Dividend yield | 0.6% | 0.2% |