A. O. Smith Corporation

NYSE:AOS Stock Report

Market Cap: US$12.2b

A. O. Smith Valuation

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

Below Fair Value: AOS ($83.72) is trading below our estimate of fair value ($105.94)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AOS 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/Revenue3.1x
Enterprise Value/EBITDA14.6x
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AOS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.8x
WMS Advanced Drainage Systems
24.4x8.5%US$12.2b
ALLE Allegion
21.8x9.9%US$12.1b
OC Owens Corning
13.9x16.7%US$14.7b
MAS Masco
19x5.9%US$17.4b
AOS A. O. Smith
21.2x5.5%US$12.2b

Price-To-Earnings vs Peers: AOS is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (19.8x).

Price to Earnings Ratio vs Industry

How does AOS's PE Ratio compare vs other companies in the US Building Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: AOS is good value based on its Price-To-Earnings Ratio (21.2x) compared to the US Building industry average (21.5x).

Price to Earnings Ratio vs Fair Ratio

What is AOS'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.

AOS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: AOS is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).

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 AOS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$83.72
US$88.23
+5.4%
8.9%US$98.00US$73.00n/a10
Aug ’25US$82.54
US$88.23
+6.9%
8.9%US$98.00US$73.00n/a10
Jul ’25US$80.18
US$88.23
+10.0%
8.1%US$95.00US$73.00n/a10
Jun ’25US$83.64
US$88.23
+5.5%
8.1%US$95.00US$73.00n/a10
May ’25US$82.79
US$88.23
+6.6%
8.1%US$95.00US$73.00n/a10
Apr ’25US$89.08
US$83.83
-5.9%
8.8%US$92.00US$68.00n/a10
Mar ’25US$83.94
US$82.30
-2.0%
8.8%US$92.00US$68.00n/a10
Feb ’25US$79.57
US$82.30
+3.4%
8.8%US$92.00US$68.00n/a10
Jan ’25US$82.44
US$79.10
-4.1%
10.9%US$90.00US$64.00n/a10
Dec ’24US$76.74
US$76.56
-0.2%
10.6%US$87.00US$64.00n/a9
Nov ’24US$70.81
US$75.33
+6.4%
9.6%US$87.00US$64.00n/a9
Oct ’24US$66.13
US$75.89
+14.8%
9.9%US$87.00US$62.00n/a9
Sep ’24US$73.57
US$75.63
+2.8%
10.4%US$87.00US$62.00US$83.728
Aug ’24US$72.59
US$75.63
+4.2%
10.4%US$87.00US$62.00US$82.548
Jul ’24US$72.78
US$71.25
-2.1%
10.2%US$82.00US$59.00US$80.188
Jun ’24US$64.58
US$71.25
+10.3%
10.2%US$82.00US$59.00US$83.648
May ’24US$70.14
US$70.25
+0.2%
10.1%US$82.00US$59.00US$82.798
Apr ’24US$69.15
US$68.00
-1.7%
9.1%US$80.00US$57.00US$89.089
Mar ’24US$66.77
US$68.00
+1.8%
9.1%US$80.00US$57.00US$83.949
Feb ’24US$69.96
US$66.89
-4.4%
10.5%US$80.00US$55.00US$79.579
Jan ’24US$57.24
US$59.89
+4.6%
10.3%US$67.00US$46.00US$82.449
Dec ’23US$60.48
US$58.22
-3.7%
12.1%US$67.00US$46.00US$76.749
Nov ’23US$54.60
US$57.65
+5.6%
12.0%US$67.00US$46.00US$70.8110
Oct ’23US$48.58
US$65.86
+35.6%
12.9%US$77.00US$49.00US$66.1311
Sep ’23US$56.42
US$65.86
+16.7%
12.9%US$77.00US$49.00US$73.5711

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

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