Franklin Electric Co., Inc.

NasdaqGS:FELE Stock Report

Market Cap: US$4.8b

Franklin Electric Valuation

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

Below Fair Value: FELE ($106.12) is trading below our estimate of fair value ($155.44)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FELE. This is calculated by dividing FELE's market cap by their current earnings.
What is FELE's PE Ratio?
PE Ratio26.3x
EarningsUS$184.50m
Market CapUS$4.85b

Price to Earnings Ratio vs Peers

How does FELE's PE Ratio compare to its peers?

The above table shows the PE ratio for FELE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.3x
KAI Kadant
40.6x6.9%US$4.6b
TKR Timken
15.4x15.4%US$5.3b
GTES Gates Industrial
28.1x25.6%US$5.3b
MWA Mueller Water Products
32.9x24.6%US$3.8b
FELE Franklin Electric
26.3x9.3%US$4.8b

Price-To-Earnings vs Peers: FELE is good value based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (29.3x).


Price to Earnings Ratio vs Industry

How does FELE's PE Ratio compare vs other companies in the US Machinery Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
1.8xn/aUS$411.62m
CVGI Commercial Vehicle Group
2.8x-46.6%US$80.23m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
ZEVY Lightning eMotors
n/an/aUS$6.00
No more companies available in this PE range
FELE 26.3xIndustry Avg. 24.1xNo. of Companies9PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FELE is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the US Machinery industry average (24.1x).


Price to Earnings Ratio vs Fair Ratio

What is FELE'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.

FELE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.3x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: FELE is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


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 FELE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$106.09
US$103.00
-2.9%
8.7%US$115.00US$90.00n/a4
Nov ’25US$97.50
US$103.00
+5.6%
8.7%US$115.00US$90.00n/a4
Oct ’25US$103.89
US$106.00
+2.0%
10.2%US$120.00US$90.00n/a4
Sep ’25US$103.86
US$106.00
+2.1%
10.2%US$120.00US$90.00n/a4
Aug ’25US$102.33
US$106.00
+3.6%
10.2%US$120.00US$90.00n/a4
Jul ’25US$93.97
US$103.00
+9.6%
7.9%US$110.00US$90.00n/a4
Jun ’25US$99.48
US$103.00
+3.5%
7.9%US$110.00US$90.00n/a4
May ’25US$97.60
US$103.00
+5.5%
7.9%US$110.00US$90.00n/a4
Apr ’25US$105.50
US$101.75
-3.6%
9.3%US$110.00US$87.00n/a4
Mar ’25US$103.93
US$101.75
-2.1%
9.3%US$110.00US$87.00n/a4
Feb ’25US$96.48
US$96.00
-0.5%
10.5%US$110.00US$87.00n/a3
Jan ’25US$96.65
US$95.00
-1.7%
11.2%US$110.00US$87.00n/a3
Dec ’24US$90.59
US$95.00
+4.9%
11.2%US$110.00US$87.00n/a3
Nov ’24US$85.03
US$95.00
+11.7%
11.2%US$110.00US$87.00US$97.503
Oct ’24US$89.23
US$100.67
+12.8%
8.2%US$110.00US$90.00US$103.893
Sep ’24US$97.06
US$100.67
+3.7%
8.2%US$110.00US$90.00US$103.863
Aug ’24US$97.62
US$100.67
+3.1%
8.2%US$110.00US$90.00US$102.333
Jul ’24US$102.90
US$98.00
-4.8%
8.8%US$110.00US$90.00US$93.973
Jun ’24US$91.74
US$98.00
+6.8%
8.8%US$110.00US$90.00US$99.483
May ’24US$90.53
US$96.00
+6.0%
10.9%US$110.00US$85.00US$97.603
Apr ’24US$94.10
US$96.00
+2.0%
10.9%US$110.00US$85.00US$105.503
Mar ’24US$94.88
US$96.00
+1.2%
10.9%US$110.00US$85.00US$103.933
Feb ’24US$90.68
US$86.33
-4.8%
5.7%US$92.00US$80.00US$96.483
Jan ’24US$79.75
US$86.33
+8.3%
5.7%US$92.00US$80.00US$96.653
Dec ’23US$83.07
US$86.33
+3.9%
5.7%US$92.00US$80.00US$90.593
Nov ’23US$81.51
US$86.33
+5.9%
5.7%US$92.00US$80.00US$85.033

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


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