A. O. Smith Corporation

LSE:0L7A Stock Report

Market Cap: US$10.6b

A. O. Smith Valuation

Is 0L7A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0L7A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0L7A ($73.51) is trading below our estimate of fair value ($100.55)

Significantly Below Fair Value: 0L7A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0L7A?

Key metric: As 0L7A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0L7A. This is calculated by dividing 0L7A's market cap by their current earnings.
What is 0L7A's PE Ratio?
PE Ratio19x
EarningsUS$561.20m
Market CapUS$10.65b

Price to Earnings Ratio vs Peers

How does 0L7A's PE Ratio compare to its peers?

The above table shows the PE ratio for 0L7A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.3x
FAN Volution Group
26.1x12.1%UK£1.1b
GEN Genuit Group
43x29.9%UK£1.0b
JHD James Halstead
19x4.1%UK£789.8m
NXR Norcros
24.9x28.9%UK£221.8m
0L7A A. O. Smith
19x5.5%US$10.6b

Price-To-Earnings vs Peers: 0L7A is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (28.3x).

Price to Earnings Ratio vs Industry

How does 0L7A's PE Ratio compare vs other companies in the European Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0L7A 19.0xIndustry Avg. 19.9xNo. of Companies13PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0L7A is good value based on its Price-To-Earnings Ratio (19x) compared to the European Building industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is 0L7A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0L7A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: 0L7A is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0L7A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$73.51
US$82.19
+11.8%
10.0%US$95.00US$68.89n/a10
Nov ’25US$75.38
US$82.19
+9.0%
10.0%US$95.00US$68.89n/a10
Oct ’25US$89.09
US$88.23
-1.0%
8.9%US$98.00US$73.00n/a10
Sep ’25US$82.53
US$88.23
+6.9%
8.9%US$98.00US$73.00n/a10
Aug ’25US$81.54
US$88.23
+8.2%
8.9%US$98.00US$73.00n/a10
Jul ’25US$80.65
US$88.23
+9.4%
8.1%US$95.00US$73.00n/a10
Jun ’25US$82.18
US$88.23
+7.4%
8.1%US$95.00US$73.00n/a10
May ’25US$82.93
US$88.23
+6.4%
8.1%US$95.00US$73.00n/a10
Apr ’25US$89.08
US$83.83
-5.9%
8.8%US$92.00US$68.00n/a10
Mar ’25US$84.01
US$82.30
-2.0%
8.8%US$92.00US$68.00n/a10
Feb ’25US$78.92
US$82.30
+4.3%
8.8%US$92.00US$68.00n/a10
Jan ’25US$82.52
US$79.10
-4.1%
10.9%US$90.00US$64.00n/a10
Dec ’24US$76.49
US$76.56
+0.09%
10.6%US$87.00US$64.00n/a9
Nov ’24US$70.43
US$75.33
+7.0%
9.6%US$87.00US$64.00US$75.389
Oct ’24US$66.50
US$75.89
+14.1%
9.9%US$87.00US$62.00US$89.099
Sep ’24US$73.62
US$75.63
+2.7%
10.4%US$87.00US$62.00US$82.538
Aug ’24US$72.45
US$75.63
+4.4%
10.4%US$87.00US$62.00US$81.548
Jul ’24US$72.41
US$71.25
-1.6%
10.2%US$82.00US$59.00US$80.658
Jun ’24US$64.46
US$71.25
+10.5%
10.2%US$82.00US$59.00US$82.188
May ’24US$68.92
US$70.25
+1.9%
10.1%US$82.00US$59.00US$82.938
Apr ’24US$68.80
US$68.00
-1.2%
9.1%US$80.00US$57.00US$89.089
Mar ’24US$66.69
US$68.00
+2.0%
9.1%US$80.00US$57.00US$84.019
Feb ’24US$68.03
US$66.89
-1.7%
10.5%US$80.00US$55.00US$78.929
Jan ’24US$57.68
US$59.89
+3.8%
10.3%US$67.00US$46.00US$82.529
Dec ’23US$60.75
US$58.22
-4.2%
12.1%US$67.00US$46.00US$76.499
Nov ’23US$54.57
US$57.65
+5.6%
12.0%US$67.00US$46.00US$70.4310

Analyst Forecast: Target price is less than 20% higher than the current share price.

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