Using the industry peer median P/E multiple (trailing + forward), Lennox International Inc. (LII) has a fair value of $459.61 based on 6 comparable companies in the Construction industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Lennox International Inc.LII | 15,593 | 20.0x | 18.4x |
| C.H. Robinson Worldwide, Inc.CHRW | 20,053 | 35.0x | 27.9x |
| Expeditors International of Washington, Inc.EXPD | 19,172 | 24.0x | 26.1x |
| Snap-on IncorporatedSNA | 18,851 | 18.9x | 18.7x |
| Pentair plcPNR | 14,126 | 21.8x | 17.6x |
| Masco CorporationMAS | 12,244 | 15.6x | 15.3x |
| Builders FirstSource, Inc.BLDR | 9,107 | 21.2x | 11.7x |
| Industry Median | 21.5x | 18.1x | |
| (*) Profit after tax | 786 | 847 | |
| Equity Value | 16,890 | 15,375 | |
| (/) Outstanding shares | 35 | 35 | |
| Fair Price | $481 | $438 | |
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.