Using the industry peer median P/E multiple (trailing + forward), A. O. Smith Corporation (AOS) has a fair value of $114.61 based on 10 comparable companies in the Industrial - Machinery industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| A. O. Smith CorporationAOS | 9,163 | 17.0x | 17.3x |
| Eaton Corporation plcETN | 139,696 | 34.4x | 26.9x |
| Parker-Hannifin CorporationPH | 114,446 | 33.4x | 33.9x |
| Howmet Aerospace Inc.HWM | 93,360 | 62.5x | 50.4x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| Cummins Inc.CMI | 73,414 | 25.9x | 25.9x |
| Emerson Electric Co.EMR | 71,660 | 31.5x | 21.2x |
| AMETEK, Inc.AME | 48,649 | 33.2x | 26.4x |
| Rockwell Automation, Inc.ROK | 40,164 | 46.6x | 29.5x |
| Roper Technologies, Inc.ROP | 37,972 | 24.8x | 19.3x |
| Ingersoll Rand Inc.IR | 32,427 | 56.6x | 25.0x |
| Industry Median | 33.3x | 26.1x | |
| (*) Profit after tax | 546 | 531 | |
| Equity Value | 18,194 | 13,881 | |
| (/) Outstanding shares | 140 | 140 | |
| Fair Price | $130 | $99 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.