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 16.87 is considered Undervalued compared with the five-year average of 19.88. The fair price of A O Smith Corp (AOS) is between 71.18 to 87.88 according to relative valuation methord. Compared to the current price of 67.20 USD , A O Smith Corp is Undervalued By 5.59%.
Relative Value
Fair Zone
71.18-87.88
Current Price：67.20
5.59%
Undervalued
16.84
PE
1Y
3Y
5Y
Trailing
Forward
11.23
EV/EBITDA
A O Smith Corp. (AOS) has a current EV/EBITDA of 11.23. The 5-year average EV/EBITDA is 13.18. The thresholds are as follows: Strongly Undervalued below 9.76, Undervalued between 9.76 and 11.47, Fairly Valued between 14.90 and 11.47, Overvalued between 14.90 and 16.61, and Strongly Overvalued above 16.61. The current Forward EV/EBITDA of 11.23 falls within the Undervalued range.
12.53
EV/EBIT
A O Smith Corp. (AOS) has a current EV/EBIT of 12.53. The 5-year average EV/EBIT is 14.66. The thresholds are as follows: Strongly Undervalued below 10.82, Undervalued between 10.82 and 12.74, Fairly Valued between 16.58 and 12.74, Overvalued between 16.58 and 18.50, and Strongly Overvalued above 18.50. The current Forward EV/EBIT of 12.53 falls within the Undervalued range.
2.38
PS
A O Smith Corp. (AOS) has a current PS of 2.38. The 5-year average PS is 2.77. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 2.43, Fairly Valued between 3.11 and 2.43, Overvalued between 3.11 and 3.44, and Strongly Overvalued above 3.44. The current Forward PS of 2.38 falls within the Undervalued range.
16.18
P/OCF
A O Smith Corp. (AOS) has a current P/OCF of 16.18. The 5-year average P/OCF is 17.57. The thresholds are as follows: Strongly Undervalued below 10.52, Undervalued between 10.52 and 14.05, Fairly Valued between 21.09 and 14.05, Overvalued between 21.09 and 24.61, and Strongly Overvalued above 24.61. The current Forward P/OCF of 16.18 falls within the Historic Trend Line -Fairly Valued range.
19.63
P/FCF
A O Smith Corp. (AOS) has a current P/FCF of 19.63. The 5-year average P/FCF is 20.53. The thresholds are as follows: Strongly Undervalued below 11.28, Undervalued between 11.28 and 15.91, Fairly Valued between 25.15 and 15.91, Overvalued between 25.15 and 29.77, and Strongly Overvalued above 29.77. The current Forward P/FCF of 19.63 falls within the Historic Trend Line -Fairly Valued range.
A O Smith Corp (AOS) has a current Price-to-Book (P/B) ratio of 5.08. Compared to its 3-year average P/B ratio of 5.74 , the current P/B ratio is approximately -11.45% higher. Relative to its 5-year average P/B ratio of 5.70, the current P/B ratio is about -10.85% higher. A O Smith Corp (AOS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.61%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.72% , the current FCF yield is about -100.00% lower.
5.07
P/B
Median3y
5.74
Median5y
5.70
6.10
FCF Yield
Median3y
4.61
Median5y
4.72
Competitors Valuation Multiple
The average P/S ratio for AOS's competitors is , providing a benchmark for relative valuation. A O Smith Corp Corp (AOS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.42%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AOS decreased by 1.48% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 13.31 to 14.01.
The secondary factor is the Revenue Growth, contributed 4.42%to the performance.
Overall, the performance of AOS in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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