A. O. Smith

AOS is overvalued

NYSE · Industrials

FAIR PRICE

27.1%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

$63.06

MARKET PRICE

$45.94

FAIR PRICE

$17.12

MARGIN

UNDERFAIROVER

COMMUNITY BUY ZONE

UNLOCKS AT 10

Where does the market buy AOS?

No one has priced AOS yet — be the first. Every investor sets the maximum price they'd still buy at; together that maps the community buy zone.

COMMUNITY MEDIAN

▓▓▓▓▓

BUYERS AT TODAY'S PRICE

▓▓ %

0/10 INVESTORS · 10 MORE TO UNLOCK

METRICS

P/E17.3
P/B4.7
P/S2.3
PEG6.71
DIV YIELD2.31%
ROE27.0%
ROIC18.4%
DEBT/EQ0.37
MKT CAP$9B

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FPI RATING

8.2/ 10

High-quality fundamentals and low debt levels across the board.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$36.75CONSERVATIVE ENTRY
$45.94FAIR PRICE
$63.06MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$36.75

Fair price × 0.80

DISTANCE

41.7%

Price to entry level

At the current price of $63.06, AOS trades 41.7% above the conservative entry level of $36.75. This entry level represents a 20% margin of safety below the calculated fair price of $45.94 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate AOS's fair price

A. O. Smith's fair price of $45.94 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $63.06, AOS trades 27.1% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting AOS's risk profile.

RELATIVE · 30%

Comparing AOS's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for AOS, weighted by recency and analyst accuracy.

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FAQ

What is the fair price of AOS?+

Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for A. O. Smith is $45.94. At the current market price of $63.06, AOS trades 27.1% above its calculated fair value.

Is AOS overvalued or undervalued?+

A. O. Smith is currently overvalued based on our valuation model. The stock trades at $63.06, which is 27.1% above the fair price of $45.94. The P/E ratio of 17.3x is a key metric in the valuation.

What is the margin of safety for AOS?+

With a 20% margin of safety applied to the fair price of $45.94, the conservative entry level for AOS is $36.75. At the current market price of $63.06, the stock trades 41.7% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is AOS's fair price updated?+

We update fair price calculations for AOS daily after market close. The current fair price of $45.94 incorporates the latest market data and sector multiples.

What factors affect AOS's fair price calculation?+

AOS's fair price of $45.94 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 17.3x, ROE of 27.0%, and dividend yield of 2.31%.

Is AOS a good buy right now?+

At $63.06, AOS trades 27.1% above our fair value estimate of $45.94. The stock is currently overvalued. ROE stands at 27.0% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.

Does AOS pay dividends?+

AOS has a dividend yield of 2.31%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.