Donaldson Company Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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 DCI * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DCI * (MX$1209.83) is trading above our estimate of fair value (MX$884.94)

Significantly Below Fair Value: DCI * is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DCI *?

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

The above table shows the Price to Earnings ratio for DCI *. This is calculated by dividing DCI *'s market cap by their current earnings.
What is DCI *'s PE Ratio?
PE Ratio	19.9x
Earnings	US$367.90m
Market Cap	US$7.32b

DCI * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	13.4x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does DCI *'s PE Ratio compare to its peers?

The above table shows the PE ratio for DCI * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	32.1x
IDEAL B-1 Impulsora del Desarrollo y el Empleo en América Latina. de	13.6x	n/a	Mex$110.6b
GCARSO A1 Grupo Carso. de	19.4x	15.6%	Mex$262.2b
LAMOSA * Grupo Lamosa. de	69.7x	38.6%	Mex$39.8b
WEIR Weir Group	25.7x	18.4%	UK£5.6b
DCI * Donaldson Company	19.9x	6.7%	Mex$7.3b

Price-To-Earnings vs Peers: DCI * is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

How does DCI *'s PE Ratio compare vs other companies in the Global Machinery Industry?

31 Companies	Price / Earnings	Estimated Growth	Market Cap

31 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DCI * is good value based on its Price-To-Earnings Ratio (19.9x) compared to the Global Machinery industry average (20.3x).

Price to Earnings Ratio vs Fair Ratio

What is DCI *'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.

DCI * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.9x
Fair PE Ratio	13.2x

Price-To-Earnings vs Fair Ratio: DCI * is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Knorr-Bremse

€11.6b

Engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide.

KBX N

€1,640.05

n/a

AB SKF

SEK 105.9b

Designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services worldwide.

SKFB N

SEK 356.91

12.2%

Signify

€2.7b

Provides lighting products, systems, and services in Europe, the Americas, and internationally.

LIGHT N

€491.55

n/a