A. O. Smith

AOS US Industrials Building Products
S&P 500
$57.39
+1.20%
Delayed · cached 15 min

Fair value analysis

AOS
A. O. Smith
IndustrialsBuilding Products
$57.39
Close used for this calculation
$72.10Fair value
Financial DNA Score
Profitability · Returns · Balance Sheet · Efficiency · Growth
74/100
Profitability17/25
Returns16/25
Balance Sheet23/25
Efficiency18/25
Growth17/25
Strong
Quality radar
74Prof.17/25Ret.16/25Eff.18/25B.Sht23/25Growth17/25

Consensus fair value

$72.10
Below FV
▲ +25.6% against the close used
Model range $34.00 – $90.91
The lowest and highest of the models that produced a value. This is the spread of the methods, not a price target.

Price target range & 52-week position

Bear$34.00Fair value$72.10Bull$90.91
FairClose
52-week traded range
52W low $55.7852W high $80.47

The 52-week range is measured from the stored price history, not estimated.

Valuation summary

Trading below the consensus fair value

A. O. Smith closed at $57.39, 20.4% below the consensus fair value of $72.10 drawn from 9 valuation models.

Financial DNA score 74/100 — Strong. P/E of 14.9x against the 20x sector multiple the P/E model uses.

Quantitative summary only — not investment advice.

All valuation models

DCF Valuation
$76.39
+33.1%
Σ[CF×(1+g)^n/(1.10)^n] + TV/(1.10)^10
g=9%, r=10%, tg=3%, n=10yr
Graham Number
$34.00
-40.8%
√(22.5 × EPS × BVPS)
EPS=3.85, BVPS=13.35 · outside Graham range (P/E 14.9, P/B 4.3) — asset-light, treat as a rough floor
P/E Fair Value
$77.00
+34.2%
EPS × 20x (sector P/E)
EPS=3.85, Sector P/E=20x
Peter Lynch (PEG)
$45.05
-21.5%
EPS × Growth% (PEG = 1 is fair)
EPS=3.85, g=11.7%
EV/EBITDA
$90.91
+58.4%
(EBITDA × 15.9x − Net Debt) ÷ Shares
EBITDA=813.7M
Dividend Discount (DDM)
$74.38
+29.6%
D1 ÷ (r − g) where D1 = D0×(1+g)
D0=1.38, r=10%, g=8%
Book Value (P/B)
$78.91
+37.5%
BVPS × (ROE−g)÷(r−g) [Justified P/B — RIM-based]
BVPS=13.35, ROE=29.7%, g=6%, r=10%
Reverse DCF
$57.39
+0.0%
Solve for g: Price = Σ[EPS×(1+g)^n/(1.10)^n] + TV
Implied: 3.2% | Historical: 11.7%
Margin of Safety
$46.85
-18.4%
Avg(DCF, Graham, P/E) × 75% (25% safety buffer)
Avg fair value=62.46, MoS=25%

Computed on September 12, 2026 from the most recent annual report on file and that day's closing price. Where a company has seen its earnings move sharply since its last annual report, this figure will lag the market.

Educational data only. Not a recommendation to buy, sell or hold any security.

Educational data only. Not a recommendation to buy, sell or hold any security.