Using the industry peer median P/E multiple (trailing + forward), Rockwell Automation, Inc. (ROK) has a fair value of $264.05 based on 8 comparable companies in the Industrial - Machinery industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Rockwell Automation, Inc.ROK | 40,403 | 46.6x | 29.5x |
| Fastenal CompanyFAST | 52,146 | 41.7x | 41.4x |
| W.W. Grainger, Inc.GWW | 50,675 | 30.2x | 27.1x |
| AMETEK, Inc.AME | 48,649 | 33.2x | 26.4x |
| Roper Technologies, Inc.ROP | 37,972 | 24.8x | 19.3x |
| Paychex, Inc.PAYX | 33,467 | 20.4x | 19.8x |
| Ingersoll Rand Inc.IR | 32,427 | 56.6x | 25.0x |
| Otis Worldwide CorporationOTIS | 30,234 | 22.2x | 19.1x |
| Xylem Inc.XYL | 29,148 | 30.5x | 23.7x |
| Industry Median | 30.4x | 24.3x | |
| (*) Profit after tax | 869 | 1,371 | |
| Equity Value | 26,399 | 33,329 | |
| (/) Outstanding shares | 113 | 113 | |
| Fair Price | $233 | $295 | |
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.