DCI Valuation

Donaldson Company Inc

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74.840

+0.78(1.053%)1D

Overview
Forecast
Valuation
Earnings

DCI Relative Valuation

DCI'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, DCI is overvalued; if below, it's undervalued.

Historical Valuation

Donaldson Company Inc (DCI) is now in the Fair zone, suggesting that its current forward PE ratio of 18.83 is considered Fairly compared with the five-year average of 20.28. The fair price of Donaldson Company Inc (DCI) is between 69.62 to 85.23 according to relative valuation methord.

Relative Value

Fair Zone

69.62-85.23

Current Price：74.22

Fair

18.83

Trailing

Forward

12.58

EV/EBITDA

Donaldson Company Inc. (DCI) has a current EV/EBITDA of 12.58. The 5-year average EV/EBITDA is 13.05. The thresholds are as follows: Strongly Undervalued below 10.35, Undervalued between 10.35 and 11.70, Fairly Valued between 14.40 and 11.70, Overvalued between 14.40 and 15.75, and Strongly Overvalued above 15.75. The current Forward EV/EBITDA of 12.58 falls within the Historic Trend Line -Fairly Valued range.

14.94

EV/EBIT

Donaldson Company Inc. (DCI) has a current EV/EBIT of 14.94. The 5-year average EV/EBIT is 15.81. The thresholds are as follows: Strongly Undervalued below 12.21, Undervalued between 12.21 and 14.01, Fairly Valued between 17.62 and 14.01, Overvalued between 17.62 and 19.42, and Strongly Overvalued above 19.42. The current Forward EV/EBIT of 14.94 falls within the Historic Trend Line -Fairly Valued range.

2.28

Donaldson Company Inc. (DCI) has a current PS of 2.28. The 5-year average PS is 2.23. The thresholds are as follows: Strongly Undervalued below 1.74, Undervalued between 1.74 and 1.99, Fairly Valued between 2.47 and 1.99, Overvalued between 2.47 and 2.71, and Strongly Overvalued above 2.71. The current Forward PS of 2.28 falls within the Historic Trend Line -Fairly Valued range.

15.87

P/OCF

Donaldson Company Inc. (DCI) has a current P/OCF of 15.87. The 5-year average P/OCF is 17.11. The thresholds are as follows: Strongly Undervalued below 11.01, Undervalued between 11.01 and 14.06, Fairly Valued between 20.16 and 14.06, Overvalued between 20.16 and 23.21, and Strongly Overvalued above 23.21. The current Forward P/OCF of 15.87 falls within the Historic Trend Line -Fairly Valued range.

19.58

P/FCF

Donaldson Company Inc. (DCI) has a current P/FCF of 19.58. The 5-year average P/FCF is 22.76. The thresholds are as follows: Strongly Undervalued below 12.73, Undervalued between 12.73 and 17.74, Fairly Valued between 27.78 and 17.74, Overvalued between 27.78 and 32.79, and Strongly Overvalued above 32.79. The current Forward P/FCF of 19.58 falls within the Historic Trend Line -Fairly Valued range.

Donaldson Company Inc (DCI) has a current Price-to-Book (P/B) ratio of 5.85. Compared to its 3-year average P/B ratio of 5.84 , the current P/B ratio is approximately 0.26% higher. Relative to its 5-year average P/B ratio of 6.08, the current P/B ratio is about -3.82% higher. Donaldson Company Inc (DCI) has a Forward Free Cash Flow (FCF) yield of approximately 3.45%. Compared to its 3-year average FCF yield of 4.45%, the current FCF yield is approximately -22.49% lower. Relative to its 5-year average FCF yield of 4.24% , the current FCF yield is about -18.73% lower.

5.85

P/B

Median3y

5.84

Median5y

6.08

3.49

FCF Yield

Median3y

4.45

Median5y

4.24

Competitors Valuation Multiple

The average P/S ratio for DCI's competitors is 1.88, providing a benchmark for relative valuation. Donaldson Company Inc Corp (DCI) exhibits a P/S ratio of 2.28, which is 21.57% above the industry average. Given its robust revenue growth of 1.31%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DCI.N

Donaldson Company Inc

Allison Transmission Holdings Inc

Performance Decomposition

Market capitalization of DCI increased by 2.21% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.29 to 24.53.

The secondary factor is the Revenue Growth, contributed 1.31%to the performance.

Overall, the performance of DCI in the past 1 year is driven by P/E Change. Which is more unsustainable.

1.31%

927.90M → 940.10M

Revenue Growth

-49.71%

12.23 → 6.15

Margin Expansion

50.61%

16.29 → 24.53

P/E Change

2.21%