Rockwell Automation, Inc. (ROK) Stock Valuation — PE Analysis
Industrial - Machinery · NYSE
Current Price
$450.74
PE Ratio (TTM)
42.2x
Intrinsic Value
$417.74
-7.9% margin of safety
COMPETITIVE MOAT
↑Deep Industrial Ecosystem Integration
Rockwell's extensive integration with industrial machinery and control systems creates high switching costs for customers. Their solutions are deeply embedded in manufacturing processes.
↑Brand Reputation and Trust
A long-standing reputation for reliability and performance in critical industrial applications builds significant customer trust. This brand equity is hard for competitors to replicate.
↑Proprietary Software and Hardware
Rockwell's specialized software and hardware platforms offer unique functionalities. This proprietary technology creates a barrier to entry and lock-in for clients.
INVESTMENT RISKS
↓Cybersecurity Vulnerabilities
As industrial systems become more connected, the risk of cyberattacks on Rockwell's integrated solutions increases. A major breach could damage reputation and trust.
↓Economic Downturns Impacting Capital Expenditure
Industrial machinery sales are cyclical and sensitive to economic conditions. Recessions can significantly reduce customer spending on new automation equipment.
↓Competition from Cloud-Native Players
Newer, agile competitors focused on cloud-based industrial IoT and analytics could challenge Rockwell's market share. They may offer more flexible and cost-effective solutions.
Base case
ROK base case PE valuation
A base case PE valuation for ROK estimates a fair value of about $417.74 per share, against a current price of $450.74. The model assumes 5.7% annual earnings growth, a 42.09x target PE multiple, and a 10% discount rate.
Intrinsic Value
$417.74
Margin of safety
-7.9%
Expected annual return
-1.5%
Base case assumptions: 5.7% annual earnings growth, 42.09x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ROK PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Rockwell Automation, Inc. respond.
Open PE Calculator for ROKCompany Overview
Rockwell Automation, Inc., established in 1903 and headquartered in Milwaukee, Wisconsin, is a global leader in providing industrial automation and digital transformation solutions. The company's operations are segmented into three key areas: Intelligent Devices, Software & Control, and Lifecycle Services. The Intelligent Devices segment offers various hardware products such as drives, motion control systems, safety and sensing equipment, industrial components, and customized configurations. The Software & Control division provides essential control and visualization software and accompanying hardware, information management platforms, digital twin and simulation tools, and network and cybersecurity infrastructure. The Lifecycle Services segment completes its offering with expert consulting, professional implementation, and ongoing connected and maintenance support. Rockwell Automation distributes its comprehensive array of hardware, software, and services worldwide through a network of independent distributors, complemented by its direct sales force. Its extensive clientele spans diverse sectors, including discrete manufacturing (like automotive, semiconductors, and logistics), general industries (such as printing, marine, and aerospace), hybrid markets (encompassing food & beverage, life sciences, and eco-industrial applications like water management and renewable energy), and process industries (including oil & gas, mining, and chemicals).
Financial Metrics — ROK PE Stock Valuation Data
PE Ratio (TTM)
42.2x
PEG Ratio
1.69
Earnings Yield
2.38%
ROE (TTM)
33.3%
Revenue/Share (TTM)
$80.04
Dividend Yield
1.22%
Debt/Equity
1.03x
Frequently Asked Questions
What is the PE ratio of ROK?
The trailing twelve-month PE ratio of ROK reflects how much investors pay per dollar of Rockwell Automation, Inc.'s earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.
Is ROK overvalued based on PE ratio?
ROK's PE of 42.2x combined with a PEG ratio of 1.69 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Industrial - Machinery, a DCF analysis may be more appropriate.
How do I value ROK stock using PE ratio?
To value Rockwell Automation, Inc. using PE: (1) Compare the current PE (42.2x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (1.69) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ROK?
ROK's PEG ratio is 1.69, calculated by dividing the PE ratio (42.2x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ROK stock valuation?
PE ratio gives a quick relative read — how ROK is priced versus Industrial - Machinery peers. DCF provides an absolute value based on projected free cash flows. For ROK, with a strong ROE of 33.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ROK DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value ROK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.