A. O. Smith Corporation
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$70.83
Market Price
$57.04
Undervalued By
19.5%
Method: 10-year unlevered FCF DCF: $546M FY2025 FCF base; 4% growth yrs 1-5; 3% yrs 6-10; 8.5% discount rate; 2.5% terminal growth; $495.9M net debt; 135.91M shares outstanding.
Reasoning: A.O. Smith is a mature water heater/boiler manufacturer with steady low-single-digit North American demand offset by higher-growth India/China expansion; conservative growth assumptions reflect current 'Hold' analyst sentiment and softer residential demand guidance.