Snap-on Valuation

Is 0L7G undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0L7G when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0L7G ($359.58) is trading below our estimate of fair value ($404.2)

Significantly Below Fair Value: 0L7G is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0L7G?

Key metric: As 0L7G is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0L7G. This is calculated by dividing 0L7G's market cap by their current earnings.
What is 0L7G's PE Ratio?
PE Ratio18x
EarningsUS$1.04b
Market CapUS$18.75b

Price to Earnings Ratio vs Peers

How does 0L7G's PE Ratio compare to its peers?

The above table shows the PE ratio for 0L7G vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
WEIR Weir Group
25x19.0%UK£5.5b
SPX Spirax Group
25.3x9.0%UK£4.9b
IMI IMI
17.3x12.0%UK£4.4b
ROR Rotork
22.5x8.8%UK£2.7b
0L7G Snap-on
18x1.3%US$18.7b

Price-To-Earnings vs Peers: 0L7G is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (22.5x).


Price to Earnings Ratio vs Industry

How does 0L7G's PE Ratio compare vs other companies in the European Machinery Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0L7G 18.0xIndustry Avg. 17.5xNo. of Companies28PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0L7G is expensive based on its Price-To-Earnings Ratio (18x) compared to the European Machinery industry average (17.5x).


Price to Earnings Ratio vs Fair Ratio

What is 0L7G'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.

0L7G PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18x
Fair PE Ratio19.3x

Price-To-Earnings vs Fair Ratio: 0L7G is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).


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 0L7G forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$359.58
US$324.50
-9.8%
14.5%US$385.00US$237.00n/a8
Nov ’25US$332.34
US$324.50
-2.4%
14.5%US$385.00US$237.00n/a8
Oct ’25US$288.30
US$287.12
-0.4%
12.1%US$336.00US$233.00n/a8
Sep ’25US$280.49
US$287.12
+2.4%
12.1%US$336.00US$233.00n/a8
Aug ’25US$278.49
US$287.12
+3.1%
12.1%US$336.00US$233.00n/a8
Jul ’25US$256.57
US$289.29
+12.8%
12.7%US$336.00US$233.00n/a7
Jun ’25US$267.65
US$288.13
+7.6%
12.1%US$336.00US$231.00n/a8
May ’25US$267.85
US$288.13
+7.6%
12.1%US$336.00US$231.00n/a8
Apr ’25US$296.20
US$280.67
-5.2%
14.6%US$336.00US$210.00n/a9
Mar ’25US$275.63
US$276.78
+0.4%
15.5%US$336.00US$210.00n/a9
Feb ’25US$288.90
US$278.67
-3.5%
15.9%US$336.00US$210.00n/a9
Jan ’25US$288.80
US$278.00
-3.7%
15.8%US$336.00US$210.00n/a9
Dec ’24US$279.02
US$277.50
-0.5%
16.8%US$336.00US$210.00n/a8
Nov ’24US$260.08
US$277.50
+6.7%
16.8%US$336.00US$210.00US$332.348
Oct ’24US$259.10
US$265.23
+2.4%
19.7%US$336.00US$190.00US$288.3010
Sep ’24US$271.07
US$264.43
-2.4%
19.3%US$328.00US$190.00US$280.4910
Aug ’24US$273.49
US$264.43
-3.3%
19.3%US$328.00US$190.00US$278.4910
Jul ’24US$289.11
US$252.83
-12.5%
17.5%US$328.00US$190.00US$256.5710
Jun ’24US$249.69
US$249.23
-0.2%
16.3%US$302.00US$190.00US$267.6510
May ’24US$260.39
US$247.23
-5.1%
15.6%US$302.00US$190.00US$267.8510
Apr ’24US$245.41
US$240.33
-2.1%
15.9%US$302.00US$185.00US$296.2010
Mar ’24US$247.67
US$238.22
-3.8%
16.7%US$302.00US$185.00US$275.639
Feb ’24US$249.61
US$229.56
-8.0%
17.4%US$298.00US$175.00US$288.909
Jan ’24US$230.21
US$227.33
-1.2%
18.3%US$298.00US$170.00US$288.809
Dec ’23US$241.76
US$229.60
-5.0%
17.5%US$298.00US$170.00US$279.0210
Nov ’23US$222.78
US$227.00
+1.9%
17.5%US$298.00US$170.00US$260.0810

Analyst Forecast: Target price is lower than the current share price.


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