AOS Valuation
A O Smith Corp
$
72.210
- Overview
- Forecast
- Valuation
- Earnings
AOS Relative Valuation
AOS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AOS is overvalued; if below, it's undervalued.
Historical Valuation
A O Smith Corp (AOS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.15 is considered Undervalued compared with the five-year average of 20.26. The fair price of A O Smith Corp (AOS) is between 73.12 to 90.15 according to relative valuation methord. Compared to the current price of 72.21 USD , A O Smith Corp is Undervalued By 1.24%.
Relative Value
Fair Zone
73.12-90.15
Current Price：72.21
1.24%
Undervalued
18.15
PE
1Y
3Y
5Y
Trailing
Forward
12.12
EV/EBITDA
A O Smith Corp. (AOS) has a current EV/EBITDA of 12.12. The 5-year average EV/EBITDA is 13.37. The thresholds are as follows: Strongly Undervalued below 9.98, Undervalued between 9.98 and 11.67, Fairly Valued between 15.07 and 11.67, Overvalued between 15.07 and 16.77, and Strongly Overvalued above 16.77. The current Forward EV/EBITDA of 12.12 falls within the Historic Trend Line -Fairly Valued range.
13.68
EV/EBIT
A O Smith Corp. (AOS) has a current EV/EBIT of 13.68. The 5-year average EV/EBIT is 14.91. The thresholds are as follows: Strongly Undervalued below 10.99, Undervalued between 10.99 and 12.95, Fairly Valued between 16.87 and 12.95, Overvalued between 16.87 and 18.83, and Strongly Overvalued above 18.83. The current Forward EV/EBIT of 13.68 falls within the Historic Trend Line -Fairly Valued range.
2.56
PS
A O Smith Corp. (AOS) has a current PS of 2.56. The 5-year average PS is 2.80. The thresholds are as follows: Strongly Undervalued below 2.14, Undervalued between 2.14 and 2.47, Fairly Valued between 3.12 and 2.47, Overvalued between 3.12 and 3.45, and Strongly Overvalued above 3.45. The current Forward PS of 2.56 falls within the Historic Trend Line -Fairly Valued range.
15.96
P/OCF
A O Smith Corp. (AOS) has a current P/OCF of 15.96. The 5-year average P/OCF is 18.00. The thresholds are as follows: Strongly Undervalued below 10.45, Undervalued between 10.45 and 14.22, Fairly Valued between 21.78 and 14.22, Overvalued between 21.78 and 25.55, and Strongly Overvalued above 25.55. The current Forward P/OCF of 15.96 falls within the Historic Trend Line -Fairly Valued range.
19.01
P/FCF
A O Smith Corp. (AOS) has a current P/FCF of 19.01. The 5-year average P/FCF is 21.08. The thresholds are as follows: Strongly Undervalued below 11.23, Undervalued between 11.23 and 16.16, Fairly Valued between 26.00 and 16.16, Overvalued between 26.00 and 30.93, and Strongly Overvalued above 30.93. The current Forward P/FCF of 19.01 falls within the Historic Trend Line -Fairly Valued range.
A O Smith Corp (AOS) has a current Price-to-Book (P/B) ratio of 5.48. Compared to its 3-year average P/B ratio of 5.69 , the current P/B ratio is approximately -3.59% higher. Relative to its 5-year average P/B ratio of 5.68, the current P/B ratio is about -3.50% higher. A O Smith Corp (AOS) has a Forward Free Cash Flow (FCF) yield of approximately 4.89%. Compared to its 3-year average FCF yield of 4.52%, the current FCF yield is approximately 8.04% lower. Relative to its 5-year average FCF yield of 4.69% , the current FCF yield is about 4.19% lower.
5.48
P/B
Median3y
5.69
Median5y
5.68
4.89
FCF Yield
Median3y
4.52
Median5y
4.69
Competitors Valuation Multiple
The average P/S ratio for AOS's competitors is 2.34, providing a benchmark for relative valuation. A O Smith Corp Corp (AOS) exhibits a P/S ratio of 2.56, which is 9.09% above the industry average. Given its robust revenue growth of -1.27%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AOS decreased by 13.36% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 1.02B to 1.01B.
The secondary factor is the Margin Expansion, contributed -1.31%to the performance.
Overall, the performance of AOS in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
Is A O Smith Corp (AOS) currently overvalued or undervalued?
A O Smith Corp (AOS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.15 is considered Undervalued compared with the five-year average of 20.26. The fair price of A O Smith Corp (AOS) is between 73.12 to 90.15 according to relative valuation methord. Compared to the current price of 72.21 USD , A O Smith Corp is Undervalued By 1.24% .
What is A O Smith Corp (AOS) fair value?
How does AOS's valuation metrics compare to the industry average?
What is the current P/B ratio for A O Smith Corp (AOS) as of Aug 18 2025?
What is the current FCF Yield for A O Smith Corp (AOS) as of Aug 18 2025?
What is the current Forward P/E ratio for A O Smith Corp (AOS) as of Aug 18 2025?