Using the industry peer median P/E multiple (trailing + forward), Xylem Inc. (XYL) has a fair value of $121.41 based on 9 comparable companies in the Industrial - Machinery industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Xylem Inc.XYL | 29,290 | 30.6x | 23.7x |
| Eaton Corporation plcETN | 139,696 | 34.4x | 26.9x |
| Parker-Hannifin CorporationPH | 114,446 | 33.4x | 33.9x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| Emerson Electric Co.EMR | 71,660 | 31.5x | 21.2x |
| Ingersoll Rand Inc.IR | 32,427 | 56.6x | 25.0x |
| Dover CorporationDOV | 28,871 | 26.6x | 25.8x |
| IDEX CorporationIEX | 14,247 | 29.7x | 24.1x |
| Pentair plcPNR | 14,126 | 21.8x | 17.6x |
| A. O. Smith CorporationAOS | 9,266 | 17.0x | 17.3x |
| Industry Median | 29.7x | 25.0x | |
| (*) Profit after tax | 957 | 1,235 | |
| Equity Value | 28,418 | 30,829 | |
| (/) Outstanding shares | 244 | 244 | |
| Fair Price | $116 | $126 | |
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.