Applied Industrial Technologies, Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $424M normalized FCF base (3-yr average FY2024-2026 free cash flow); 8% annual FCF growth years 1-5; 5% years 6-10; 8.5% discount rate; 3% terminal growth; $356M net debt; 36.70M diluted shares.

Reasoning: AIT is an asset-light industrial MRO/fluid-power distributor with low capex intensity and consistently high free-cash-flow conversion, so a standard DCF anchored to its stable, growing 3-year FCF trend and a below-market discount rate (reflecting lower cyclicality than a manufacturer) is well suited.