AMETEK, Inc. (AME) Intrinsic Value & DCF Valuation
Electrical Equipment & Parts · NYSE
Current Price
$248.62
Intrinsic Value
$314.74
+21.0% margin of safety
What Is AMETEK, Inc.'s Intrinsic Value?
As of 2026-10-07, the base-case DCF model estimates the intrinsic value of AMETEK, Inc. (AME) at $314.74 per share, compared with a market price of $248.62, a margin of safety of +21.0%. The base case assumes 12.8% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $264.38 to $371.73. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is AMETEK, Inc. (AME) Undervalued?
At $248.62, AME trades about 21.0% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Diversified Industrial Solutions
AME's broad portfolio across diverse end markets like aerospace, medical, and industrial insulates it from downturns in any single sector. This diversification creates resilience.
↑Acquisition Integration Expertise
AME's proven track record of successfully acquiring and integrating niche technology businesses allows it to continuously expand its capabilities and market reach. This fuels growth.
↑Mission-Critical Product Demand
The company's products are essential for critical applications in sectors like aerospace and defense, ensuring consistent demand even in uncertain economic times. This drives stability.
INVESTMENT RISKS
↓Valuation Concerns
Recent analysis suggests AME may be overvalued based on DCF models, indicating potential downside risk if growth expectations are not met. This warrants careful investor consideration.
↓Sensitivity to Industrial Cycles
Despite diversification, AME remains exposed to broader industrial capital expenditure cycles. A significant slowdown could impact revenue and profitability across segments.
↓Post-Earnings Stock Volatility
The stock has experienced notable declines following earnings reports, suggesting investor sensitivity to performance metrics and future guidance. This creates trading risk.
Base case
AME base case valuation
Intrinsic Value
$314.74
Margin of safety
+21.0%
Expected annual return
+4.8%
Base case assumptions: 12.8% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the AME valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for AMETEK, Inc. respond.
Open DCF Calculator for AMECompany Overview
AMETEK, Inc. is a global enterprise that develops and markets a diverse portfolio of electronic instruments and electromechanical devices. The company's operations are structured into two principal divisions: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). The EIG segment provides sophisticated instrumentation solutions catering to various sectors, including process control, aerospace, power generation, and general industrial applications. It also delivers specialized process and analytical tools essential for industries such as oil and gas, petrochemicals, pharmaceuticals, semiconductors, automation, and food and beverage production. Furthermore, EIG supplies equipment for laboratory settings, ultra-precision manufacturing, medical diagnostics, and critical test and measurement tasks. Its offerings encompass power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility testing apparatus, gas turbine components, environmental health and safety sensors, dashboard instruments for heavy vehicles, and specialized controls for food and beverage processing. For the aviation sector, EIG manufactures aircraft and engine sensors, monitoring systems, power units, fuel and fluid measurement systems, and data acquisition solutions. The EMG segment is known for its advanced engineered electrical connectors and protective electronics packaging, safeguarding sensitive and mission-critical components. It produces high-precision motion control products crucial for applications like data storage, medical devices, office equipment, and automated systems. This segment also manufactures specialized materials, including high-purity powdered metals, strips and foils, unique clad metals, and metal matrix composites. Additionally, EMG supplies motor-blower systems and heat exchangers for thermal regulation in military and commercial aircraft, and ground vehicles. It provides motors for diverse uses, such as commercial appliances, fitness machines, food and beverage processing equipment, hydraulic pumps, and industrial fans. A key service offered by EMG is its network of aviation maintenance, repair, and overhaul (MRO) facilities. Beyond these core segments, the company also offers communication solutions tailored for clinical and educational environments. Established in 1930, AMETEK, Inc. maintains its headquarters in Berwyn, Pennsylvania.
Financial Metrics — AME Stock Valuation Data
Revenue/Share (TTM)
$34.34
FCF/Share (TTM)
$7.97
ROIC (TTM)
11.3%
ROE (TTM)
14.5%
P/FCF
31.2x
EV/EBITDA
24.2x
FCF Yield
3.21%
Debt/Equity
0.21x
On a trailing twelve-month basis, AME generates free cash flow per share of $7.97 alongside a ROIC of 11.3%, both central inputs for a DCF valuation. Its P/FCF ratio of 31.2x and FCF yield of 3.21% then frame how AME is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of AME?
AMETEK, Inc. currently generates $7.97 in free cash flow per share. At the current price of $248.62, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is AME undervalued?
AME trades at a P/FCF ratio of 31.2x with a free cash flow yield of 3.21%. This P/FCF is in a moderate range. However, whether AME is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value AME stock using DCF?
To perform a DCF valuation on AMETEK, Inc.: (1) Start with the trailing free cash flow per share ($7.97) as the base, (2) project future FCF growth over 5-10 years based on Electrical Equipment & Parts industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting AME's risk profile — with a debt-to-equity of 0.21x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to AME?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For AMETEK, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Electrical Equipment & Parts trends, then discounting those amounts to today's dollars. AME's ROIC of 11.3% shows moderate capital returns.
How does WACC affect AME stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For AME, with a debt-to-equity ratio of 0.21x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 24.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See AME PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Industrials valuationsDCF and P/E value AME with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.