Assessing AMETEK (AME) Valuation After BofA ‘US 1 List’ Reaffirmation and Improving Short-Interest Sentiment

AMETEK (AME) just earned another year on BofA’s closely watched US 1 List, and its short interest ticked down. Together these moves underscore a market that is gradually leaning more optimistic on the stock.

See our latest analysis for AMETEK.

At a latest share price of $203.84, AMETEK’s steady year to date share price return and strong multi year total shareholder returns suggest momentum is quietly building as investors price in consistent growth and lower perceived risk.

If AMETEK’s steady climb has you thinking more broadly about industrial and aerospace exposure, this could be a smart moment to explore aerospace and defense stocks as potential next ideas.

With sentiment turning steadily more positive and the stock sitting modestly below consensus targets, the key question now is whether AMETEK still trades at a discount or if markets have already priced in several years of future growth.

Most Popular Narrative Narrative: 7.3% Undervalued

Compared with AMETEK’s last close at $203.84, the most widely followed narrative points to a higher fair value, implying modest upside from here.

EMG and Automation segments are inflecting upwards, with destocking now complete and record orders translating to accelerating organic growth and strong core margin expansion; this shift is poised to further enhance operating leverage and group EBITDA growth in coming quarters.

Read the complete narrative.

Curious how steady, mid single digit growth assumptions, rising margins and a richer future earnings multiple can still justify upside from today’s price? The full narrative unpacks the exact profit trajectory and valuation bridge driving that higher fair value call.

Result: Fair Value of $219.94 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in semiconductor linked instrumentation demand, or any missteps integrating recent acquisitions, could quickly challenge today’s upbeat margin and growth assumptions.

Find out about the key risks to this AMETEK narrative.

Another View: Valuation Looks Stretched on Earnings

While the narrative points to around 7% upside, our DCF work paints a cooler picture. AMETEK’s fair value appears nearer $152.52, well below the current $203.84 share price. If the SWS DCF model is right, has the market already paid up for years of steady growth?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AMETEK for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 907 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own AMETEK Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding AMETEK.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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