TKR Valuation

Timken Co

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73.570

-1.08(-1.447%)1D

Overview
Forecast
Valuation
Earnings

TKR Relative Valuation

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

Historical Valuation

Timken Co (TKR) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.31 is considered Undervalued compared with the five-year average of 12.63. The fair price of Timken Co (TKR) is between 76.89 to 92.79 according to relative valuation methord. Compared to the current price of 73.57 USD , Timken Co is Undervalued By 4.32%.

Relative Value

Fair Zone

76.89-92.79

Current Price：73.57

4.32%

Undervalued

13.31

Trailing

Forward

8.86

EV/EBITDA

Timken Co. (TKR) has a current EV/EBITDA of 8.86. The 5-year average EV/EBITDA is 8.52. The thresholds are as follows: Strongly Undervalued below 6.76, Undervalued between 6.76 and 7.64, Fairly Valued between 9.40 and 7.64, Overvalued between 9.40 and 10.27, and Strongly Overvalued above 10.27. The current Forward EV/EBITDA of 8.86 falls within the Historic Trend Line -Fairly Valued range.

11.93

EV/EBIT

Timken Co. (TKR) has a current EV/EBIT of 11.93. The 5-year average EV/EBIT is 10.98. The thresholds are as follows: Strongly Undervalued below 8.38, Undervalued between 8.38 and 9.68, Fairly Valued between 12.28 and 9.68, Overvalued between 12.28 and 13.58, and Strongly Overvalued above 13.58. The current Forward EV/EBIT of 11.93 falls within the Historic Trend Line -Fairly Valued range.

1.12

Timken Co. (TKR) has a current PS of 1.12. The 5-year average PS is 1.21. The thresholds are as follows: Strongly Undervalued below 0.89, Undervalued between 0.89 and 1.05, Fairly Valued between 1.37 and 1.05, Overvalued between 1.37 and 1.53, and Strongly Overvalued above 1.53. The current Forward PS of 1.12 falls within the Historic Trend Line -Fairly Valued range.

9.25

P/OCF

Timken Co. (TKR) has a current P/OCF of 9.25. The 5-year average P/OCF is 10.05. The thresholds are as follows: Strongly Undervalued below 6.09, Undervalued between 6.09 and 8.07, Fairly Valued between 12.03 and 8.07, Overvalued between 12.03 and 14.01, and Strongly Overvalued above 14.01. The current Forward P/OCF of 9.25 falls within the Historic Trend Line -Fairly Valued range.

12.16

P/FCF

Timken Co. (TKR) has a current P/FCF of 12.16. The 5-year average P/FCF is 14.78. The thresholds are as follows: Strongly Undervalued below 6.94, Undervalued between 6.94 and 10.86, Fairly Valued between 18.70 and 10.86, Overvalued between 18.70 and 22.62, and Strongly Overvalued above 22.62. The current Forward P/FCF of 12.16 falls within the Historic Trend Line -Fairly Valued range.

Timken Co (TKR) has a current Price-to-Book (P/B) ratio of 1.68. Compared to its 3-year average P/B ratio of 2.16 , the current P/B ratio is approximately -22.06% higher. Relative to its 5-year average P/B ratio of 2.26, the current P/B ratio is about -25.53% higher. Timken Co (TKR) has a Forward Free Cash Flow (FCF) yield of approximately 6.11%. Compared to its 3-year average FCF yield of 5.69%, the current FCF yield is approximately 7.37% lower. Relative to its 5-year average FCF yield of 6.06% , the current FCF yield is about 0.84% lower.

1.68

P/B

Median3y

2.16

Median5y

2.26

6.11

FCF Yield

Median3y

5.69

Median5y

6.06

Competitors Valuation Multiple

The average P/S ratio for TKR's competitors is 2.62, providing a benchmark for relative valuation. Timken Co Corp (TKR) exhibits a P/S ratio of 1.12, which is -57.40% above the industry average. Given its robust revenue growth of -0.75%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Franklin Electric Co Inc

Performance Decomposition

Market capitalization of TKR decreased by 12.97% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.45 to 16.97.

The secondary factor is the Revenue Growth, contributed -0.75%to the performance.

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

-0.75%

1.18B → 1.17B

Revenue Growth

-15.41%

8.63 → 7.30

Margin Expansion

3.19%

16.45 → 16.97

P/E Change

-12.97%