TGM's two-stage DCF values RTX Corporation (RTX) between $43.89 and $107.21 depending on assumptions, with a base case of $68.26. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$198.81 is justified only if free cash flow grows about +30.7% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.5%/yr | 8.5% | $43.89 |
| Base case | 8.5%/yr | 7.5% | $68.26 |
| Optimistic | 11.5%/yr | 6.5% | $107.21 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 8, 2026 · assumptions not provided | $232.56 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$198.81
Market-Implied Growth
+30.7%/yr
vs +8.5% 5Y actual
Model Scenario Range
$43.89 – $107.21
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for RTX (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $4.6B · 1.35B shares · net debt $30.5B
Estimated Fair Value
$68.26
-65.7% vs $198.81
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.5%/yr FCF growth and 10-year horizon fixed. Green = above today's $198.81; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $95.77 | $111 | $131 | $158 | $200 |
| 6.5% | $71.47 | $80.43 | $91.62 | $106 | $125 |
| 7.5% | $55.30 | $61.19 | $68.26 | $76.89 | $87.66 |
| 8.5% | $43.76 | $47.89 | $52.71 | $58.39 | $65.20 |
| 9.5% | $35.13 | $38.16 | $41.62 | $45.60 | $50.24 |
