Applied Industrial Technologies, Inc.

NYSE:AIT Stock Report

Market Cap: US$7.7b

Applied Industrial Technologies Valuation

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

Below Fair Value: AIT ($197.88) is trading below our estimate of fair value ($537.16)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AIT 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/Revenue1.8x
Enterprise Value/EBITDA14.4x
PEG Ratio4.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
SITE SiteOne Landscape Supply
47.8x11.8%US$8.3b
WCC WESCO International
12.3x6.3%US$8.7b
MSM MSC Industrial Direct
16.9x8.5%US$5.6b
AL Air Lease
9.9x4.4%US$5.7b
AIT Applied Industrial Technologies
20.4x4.2%US$7.7b

Price-To-Earnings vs Peers: AIT is good value based on its Price-To-Earnings Ratio (20.4x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does AIT's PE Ratio compare vs other companies in the US Trade Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AIT is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the US Trade Distributors industry average (17.3x).


Price to Earnings Ratio vs Fair Ratio

What is AIT'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.

AIT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.4x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: AIT is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).


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 AIT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$197.88
US$196.67
-0.6%
3.2%US$205.00US$190.00n/a3
Mar ’25US$192.37
US$196.67
+2.2%
3.2%US$205.00US$190.00n/a3
Feb ’25US$181.67
US$196.67
+8.3%
3.2%US$205.00US$190.00n/a3
Jan ’25US$172.69
US$184.00
+6.5%
2.3%US$190.00US$180.00n/a3
Dec ’24US$165.72
US$184.00
+11.0%
2.3%US$190.00US$180.00n/a3
Nov ’24US$155.27
US$184.00
+18.5%
2.3%US$190.00US$180.00n/a3
Oct ’24US$154.61
US$180.33
+16.6%
2.6%US$185.00US$174.00n/a3
Sep ’24US$157.08
US$180.33
+14.8%
2.6%US$185.00US$174.00n/a3
Aug ’24US$146.75
US$164.33
+12.0%
2.5%US$170.00US$161.00n/a3
Jul ’24US$144.83
US$164.33
+13.5%
2.5%US$170.00US$161.00n/a3
Jun ’24US$123.95
US$164.33
+32.6%
2.5%US$170.00US$161.00n/a3
May ’24US$132.60
US$164.33
+23.9%
2.5%US$170.00US$161.00n/a3
Apr ’24US$142.13
US$164.00
+15.4%
2.6%US$170.00US$160.00n/a3
Mar ’24US$143.98
US$164.00
+13.9%
2.6%US$170.00US$160.00US$192.373
Feb ’24US$145.72
US$164.00
+12.5%
2.6%US$170.00US$160.00US$181.673
Jan ’24US$126.03
US$141.67
+12.4%
4.2%US$150.00US$137.00US$172.693
Dec ’23US$132.09
US$141.67
+7.3%
4.2%US$150.00US$137.00US$165.723
Nov ’23US$129.72
US$141.67
+9.2%
4.2%US$150.00US$137.00US$155.273
Oct ’23US$102.78
US$134.67
+31.0%
3.3%US$140.00US$129.00US$154.613
Sep ’23US$104.73
US$134.67
+28.6%
3.3%US$140.00US$129.00US$157.083
Aug ’23US$103.30
US$120.00
+16.2%
3.4%US$125.00US$115.00US$146.753
Jul ’23US$95.77
US$126.00
+31.6%
3.1%US$130.00US$120.00US$144.834
Jun ’23US$103.49
US$126.00
+21.8%
3.1%US$130.00US$120.00US$123.954
May ’23US$104.69
US$124.50
+18.9%
4.0%US$130.00US$119.00US$132.604
Apr ’23US$103.58
US$118.00
+13.9%
4.1%US$123.00US$110.00US$142.134
Mar ’23US$98.09
US$118.00
+20.3%
4.1%US$123.00US$110.00US$143.984

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


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