Valuation dashboard for A. O. Smith Corporation (AOS) with P/E 17.62, P/B 4.71, EV/EBITDA 11.9 and dividend yield 2.31%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Industrials companies.
A. O. Smith Corporation (AOS) is a global manufacturer and marketer specializing in a comprehensive array of water heating and treatment solutions. Its operations span North America, China, Europe, and India, organized into two primary geographic segments: North America and Rest of World.
What would it be worth at its usual multiples?
Versus its usual multiples: cheap · Current P/E 17.6× · Multiples range: $78.94 · $92.54.
At the decade median (22.1×) $79 (+25 %); at its sector median (25.9×) $93 (+47 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Analysis Summary
A. O. Smith Corporation reported revenue of $3.83B in the most recent fiscal year, growing at a 5-year CAGR of 5.8%. Net income reached $546.2M, with a 9.6% 5-year CAGR.
Trailing-twelve-month margins: gross margin 38.6%, operating margin 17.6%, net margin 13.0%.
At $63.07 (closing price, October 30, 2026), AOS trades at a P/E of 17.62 and an ROE of 26.73%. Market capitalisation stands at $8.6B.
Balance sheet quality for AOS: debt-to-equity ratio of 0.39, current ratio of 1.64 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 17.62 |
| Price / Book | 4.71 |
| EV / EBITDA | 11.9 |
| Dividend Yield | 2.31% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| AOS | A. O. Smith Corporation | $8.6B | 17.62 | 4.71 | 26.7% |
| FELE | Franklin Electric Co., Inc. | $4.2B | 21.43 | 2.92 | 14.5% |
| XYL | Xylem Inc. | $21.2B | 20.44 | 2.09 | 10.0% |
| PNR | Pentair plc | $10.6B | 17.58 | 2.74 | 16.0% |
| WTS | Watts Water Technologies, Inc. | $11.6B | 30.33 | 5.32 | 18.6% |
| ZWS | Zurn Elkay Water Solutions Corporation | $7.4B | 26.20 | 4.40 | 17.7% |
Price
| Price | $63.07 (closing price, October 30, 2026) |
| Market Cap | $8.6B |
| Exchange | NYSE |
| Country | US |
Profitability
| Return on Equity | 26.73% |
| Return on Invested Capital | 18.22% |
| Return on Assets | 13.53% |
| Gross Margin | 38.62% |
| Operating Margin | 17.57% |
| Net Margin | 13.01% |
Related companies: FELE · XYL · PNR · WTS · ZWS
Explore sector: Industrials · Industrial - Machinery
More sections of AOS: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks