Applied Industrial Technologies

NYSE:AIT Stock Report

Mkt Cap: US$5.1b

We’ve recently updated our valuation analysis.

Applied Industrial Technologies Valuation

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

[object Object] Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1.4x
Enterprise Value/EBITDA12.6x
PEG Ratio2.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.4x
UNVR Univar Solutions
8.7x-8.6%US$5.5b
CNM Core & Main
11.2x-1.5%US$5.1b
MSM MSC Industrial Direct
14.1x5.9%US$4.8b
GATX GATX
23.6x21.7%US$4.0b
AIT Applied Industrial Technologies
18.1x6.6%US$5.1b

Price-To-Earnings vs Peers: AIT is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (14.4x).


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/a10.8%
n/an/an/a

Price-To-Earnings vs Industry: AIT is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the US Trade Distributors industry average (11.6x)


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 Ratio18.1x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: AIT is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).


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 ($132.09) is trading above our estimate of fair value ($37.48)

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


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$132.09
US$141.67
+7.3%
4.2%US$150.00US$137.00n/a3
Nov ’23US$129.72
US$141.67
+9.2%
4.2%US$150.00US$137.00n/a3
Oct ’23US$102.78
US$134.67
+31.0%
3.3%US$140.00US$129.00n/a3
Sep ’23US$104.73
US$134.67
+28.6%
3.3%US$140.00US$129.00n/a3
Aug ’23US$103.30
US$120.00
+16.2%
3.4%US$125.00US$115.00n/a3
Jul ’23US$95.77
US$126.00
+31.6%
3.1%US$130.00US$120.00n/a4
Jun ’23US$103.49
US$126.00
+21.8%
3.1%US$130.00US$120.00n/a4
May ’23US$104.69
US$124.50
+18.9%
4.0%US$130.00US$119.00n/a4
Apr ’23US$103.58
US$118.00
+13.9%
4.1%US$123.00US$110.00n/a4
Mar ’23US$98.09
US$118.00
+20.3%
4.1%US$123.00US$110.00n/a4
Feb ’23US$99.73
US$118.00
+18.3%
4.1%US$123.00US$110.00n/a4
Jan ’23US$102.70
US$112.00
+9.1%
1.9%US$115.00US$110.00n/a4
Dec ’22US$93.56
US$112.00
+19.7%
1.9%US$115.00US$110.00US$132.094
Nov ’22US$97.05
US$112.00
+15.4%
1.9%US$115.00US$110.00US$129.724
Oct ’22US$91.79
US$110.33
+20.2%
0.4%US$111.00US$110.00US$102.783
Sep ’22US$87.67
US$110.25
+25.8%
0.4%US$111.00US$110.00US$104.734
Aug ’22US$89.70
US$108.00
+20.4%
2.6%US$110.00US$104.00US$103.303
Jul ’22US$92.32
US$108.00
+17.0%
2.6%US$110.00US$104.00US$95.773
Jun ’22US$98.86
US$108.50
+9.8%
2.4%US$110.00US$104.00US$103.494
May ’22US$95.66
US$108.50
+13.4%
2.4%US$110.00US$104.00US$104.694
Apr ’22US$93.18
US$95.25
+2.2%
9.5%US$110.00US$86.00US$103.584
Mar ’22US$87.26
US$90.25
+3.4%
3.5%US$95.00US$86.00US$98.094
Feb ’22US$71.99
US$90.25
+25.4%
3.5%US$95.00US$86.00US$99.734
Jan ’22US$77.99
US$82.25
+5.5%
6.8%US$90.00US$76.00US$102.704
Dec ’21US$77.71
US$78.50
+1.0%
5.0%US$85.00US$75.00US$93.564

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


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