Using the industry peer median P/E multiple (trailing + forward), Stanley Black & Decker, Inc. (SWK) has a fair value of $107.38 based on 10 comparable companies in the Manufacturing - Tools & Accessories industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Stanley Black & Decker, Inc.SWK | 10,764 | 26.7x | 15.6x |
| Caterpillar Inc.CAT | 329,153 | 37.4x | 37.7x |
| GE AerospaceGE | 300,095 | 34.9x | 38.2x |
| RTX CorporationRTX | 257,874 | 38.7x | 28.1x |
| Deere & CompanyDE | 157,162 | 31.5x | 23.3x |
| The Boeing CompanyBA | 153,421 | 78.8x | 149.1x |
| Lockheed Martin CorporationLMT | 145,078 | 29.2x | 20.9x |
| Honeywell International Inc.HON | 143,911 | 28.3x | 22.5x |
| Union Pacific CorporationUNP | 141,613 | 19.9x | 19.1x |
| Eaton Corporation plcETN | 139,696 | 34.4x | 26.9x |
| Parker-Hannifin CorporationPH | 114,446 | 33.4x | 33.9x |
| Industry Median | 33.9x | 27.5x | |
| (*) Profit after tax | 402 | 692 | |
| Equity Value | 13,637 | 19,036 | |
| (/) Outstanding shares | 152 | 152 | |
| Fair Price | $90 | $125 | |
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.