TKR Valuation

Timken Co

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78.990

+1.04(1.334%)1D

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 Fair zone, suggesting that its current forward PE ratio of 13.56 is considered Fairly compared with the five-year average of 12.66. The fair price of Timken Co (TKR) is between 73.35 to 90.21 according to relative valuation methord.

Relative Value

Fair Zone

73.35-90.21

Current Price：78.99

Fair

13.56

Trailing

Forward

8.99

EV/EBITDA

Timken Co. (TKR) has a current EV/EBITDA of 8.99. The 5-year average EV/EBITDA is 8.54. The thresholds are as follows: Strongly Undervalued below 6.76, Undervalued between 6.76 and 7.65, Fairly Valued between 9.44 and 7.65, Overvalued between 9.44 and 10.33, and Strongly Overvalued above 10.33. The current Forward EV/EBITDA of 8.99 falls within the Historic Trend Line -Fairly Valued range.

12.27

EV/EBIT

Timken Co. (TKR) has a current EV/EBIT of 12.27. The 5-year average EV/EBIT is 11.04. The thresholds are as follows: Strongly Undervalued below 8.33, Undervalued between 8.33 and 9.68, Fairly Valued between 12.39 and 9.68, Overvalued between 12.39 and 13.74, and Strongly Overvalued above 13.74. The current Forward EV/EBIT of 12.27 falls within the Historic Trend Line -Fairly Valued range.

77.95

Timken Co. (TKR) has a current PS of 77.95. The 5-year average PS is 1.70. The thresholds are as follows: Strongly Undervalued below -10.57, Undervalued between -10.57 and -4.43, Fairly Valued between 7.84 and -4.43, Overvalued between 7.84 and 13.98, and Strongly Overvalued above 13.98. The current Forward PS of 77.95 falls within the Strongly Overvalued range.

9.09

P/OCF

Timken Co. (TKR) has a current P/OCF of 9.09. 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 12.02 and 8.07, Overvalued between 12.02 and 14.00, and Strongly Overvalued above 14.00. The current Forward P/OCF of 9.09 falls within the Historic Trend Line -Fairly Valued range.

13.19

P/FCF

Timken Co. (TKR) has a current P/FCF of 13.19. The 5-year average P/FCF is 14.78. The thresholds are as follows: Strongly Undervalued below 6.97, Undervalued between 6.97 and 10.88, Fairly Valued between 18.69 and 10.88, Overvalued between 18.69 and 22.60, and Strongly Overvalued above 22.60. The current Forward P/FCF of 13.19 falls within the Historic Trend Line -Fairly Valued range.

Timken Co (TKR) has a current Price-to-Book (P/B) ratio of 1.73. Compared to its 3-year average P/B ratio of 2.11 , the current P/B ratio is approximately -17.90% higher. Relative to its 5-year average P/B ratio of 2.23, the current P/B ratio is about -22.33% higher. Timken Co (TKR) has a Forward Free Cash Flow (FCF) yield of approximately 7.19%. Compared to its 3-year average FCF yield of 6.00%, the current FCF yield is approximately 19.81% lower. Relative to its 5-year average FCF yield of 5.79% , the current FCF yield is about 24.28% lower.

1.73

P/B

Median3y

2.11

Median5y

2.23

7.19

FCF Yield

Median3y

6.00

Median5y

5.79

Competitors Valuation Multiple

The average P/S ratio for TKR's competitors is 108.44, providing a benchmark for relative valuation. Timken Co Corp (TKR) exhibits a P/S ratio of 77.95, which is -28.11% above the industry average. Given its robust revenue growth of 2.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Gates Industrial Corporation PLC

Alliance Laundry Holdings Inc

Performance Decomposition

Market capitalization of TKR increased by 1.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.80 to 18.43.

The secondary factor is the Revenue Growth, contributed 2.69%to the performance.

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

2.69%

1.13B → 1.16B

Revenue Growth

-17.37%

7.77 → 6.42

Margin Expansion

16.67%

15.80 → 18.43

P/E Change

1.99%