Assessing Atmus Filtration Technologies’ (ATMU) Valuation After Its Strong Year-to-Date Share Price Momentum

Recent Share Performance and Context

Atmus Filtration Technologies (ATMU) has been quietly grinding higher, with the stock up about 13% over the past month and 34% year to date, outpacing many industrial peers.

See our latest analysis for Atmus Filtration Technologies.

With the share price now at $52.25 and a 34.22% year to date share price return, Atmus is showing firm, sustained momentum as investors respond to its earnings growth profile and cash generation.

If this kind of steady industrial momentum appeals to you, it might be worth scanning fast growing stocks with high insider ownership for other under the radar names with strong alignment between management and shareholders.

But after such a strong run and only a modest gap to Wall Street targets, is Atmus still trading at a discount to its true earnings power, or is the market already pricing in the next leg of growth?

Most Popular Narrative Narrative: 5% Undervalued

With Atmus trading at $52.25 against a narrative fair value of $55.00, the story frames today’s price as leaving room for upside while leaning on disciplined growth assumptions.

The company's push into industrial filtration (beyond automotive), both through disciplined M&A and organic new product launches, taps into the growing replacement and modernization needs of automated and digitized industrial environments, expanding the total addressable market and supporting both revenue growth and margin diversification.

Read the complete narrative.

Want to see the math behind that upside gap? This narrative leans on steady top line expansion, rising margins, and a punchy future earnings multiple. Curious which specific profit and revenue milestones have to line up to make that valuation work?

Result: Fair Value of $55 (UNDERVALUED)

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

However, this upside narrative could be derailed if replacement demand weakens faster than expected or if Cummins reduces volumes as the separation matures.

Find out about the key risks to this Atmus Filtration Technologies narrative.

Another Angle on Valuation

Step away from narratives and the plain price to earnings math looks more grounded than dramatic. At 21.3x earnings, Atmus trades below the Machinery industry at 25.5x and just under its 21.7x fair ratio, hinting at modest upside rather than a dramatic discount.

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Atmus Filtration Technologies 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 906 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 Atmus Filtration Technologies Narrative

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

A great starting point for your Atmus Filtration Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, put Simply Wall Street’s powerful screener to work and line up your next opportunities so you are not chasing the market later.

• Target reliable cash generators by reviewing these 15 dividend stocks with yields > 3% that can help anchor your returns with steady income.
• Capitalize on market mispricing by scanning these 906 undervalued stocks based on cash flows where future cash flows may not yet be fully recognized.
• Position yourself at the frontier of innovation by tracking these 28 quantum computing stocks that are shaping tomorrow’s computing landscape.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com