AMETEK, Inc. (AME) Stock Valuation — PE Analysis
Electrical Equipment & Parts · NYSE
Current Price
$230.31
PE Ratio (TTM)
34.5x
Intrinsic Value
$224.95
-2.4% margin of safety
COMPETITIVE MOAT
↑Acquisition Expertise
AMETEK's consistent track record of acquiring and integrating niche businesses, like First Aviation Services, expands its market reach and technological capabilities. This strategy diversifies revenue streams and strengthens its position in specialized sectors.
↑Diversified End Markets
The company serves a broad range of industries including aerospace, defense, medical, and industrial. This diversification mitigates risks associated with downturns in any single sector, providing stability.
↑Technological Niche Leadership
AMETEK focuses on specialized, high-performance products and solutions, such as those for quantum computing. This allows them to command premium pricing and build strong customer loyalty in specific technological areas.
INVESTMENT RISKS
↓Integration Challenges
While acquisitions are a strength, integrating new companies can be complex and costly. Failure to achieve expected synergies or operational efficiencies could negatively impact profitability.
↓Supply Chain Disruptions
As a manufacturer of electrical equipment, AMETEK is susceptible to global supply chain issues. Shortages or price increases in raw materials and components can affect production and margins.
↓Intense Competition
The electrical equipment and parts industry is highly competitive. AMETEK faces pressure from both larger conglomerates and smaller, specialized players, potentially impacting market share and pricing power.
Base case
AME base case PE valuation
A base case PE valuation for AME estimates a fair value of about $224.95 per share, against a current price of $230.31. The model assumes 6.1% annual earnings growth, a 35x target PE multiple, and a 10% discount rate.
Intrinsic Value
$224.95
Margin of safety
-2.4%
Expected annual return
-0.5%
Base case assumptions: 6.1% annual earnings growth, 35x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
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 AME PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for AMETEK, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
34.5x
PEG Ratio
4.15
Earnings Yield
2.90%
ROE (TTM)
14.4%
Revenue/Share (TTM)
$33.19
Dividend Yield
0.56%
Debt/Equity
0.20x
Frequently Asked Questions
What is the PE ratio of AME?
The trailing twelve-month PE ratio of AME reflects how much investors pay per dollar of AMETEK, Inc.'s earnings. This metric is most useful when compared to Electrical Equipment & Parts peers and the company's own historical range.
Is AME overvalued based on PE ratio?
AME's PE of 34.5x combined with a PEG ratio of 4.15 provides a growth-adjusted perspective. A PEG above 2.0 suggests AME may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Electrical Equipment & Parts, a DCF analysis may be more appropriate.
How do I value AME stock using PE ratio?
To value AMETEK, Inc. using PE: (1) Compare the current PE (34.5x) against the Electrical Equipment & Parts median to assess relative pricing, (2) check the PEG ratio (4.15) 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 AME?
AME's PEG ratio is 4.15, calculated by dividing the PE ratio (34.5x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for AME stock valuation?
PE ratio gives a quick relative read — how AME is priced versus Electrical Equipment & Parts peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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 AME 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 AME with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.