A. O. Smith Corporation

A. O. Smith Corporation

AOSยทNYSE

$56.73

-0.32%
IndustrialsIndustrial - Machinery

A. O. Smith Corporation manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; commercial boilers for hospitals, schools, hotels, and other large commercial buildings, as well as residential boilers for homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, electric wall-hung, gas tankless, combi-boiler, heat pump and solar water heaters. The company offers its products primarily under the A. O. Smith, State, Lochinvar, and water softener brands. It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

At a Glance

Live Snapshot
Market Cap$7.93B
EPS3.8600
P/E Ratio14.70
Earnings Date07/23/2026
A. O. Smith Corporation

A. O. Smith Corporation Fair Value Envelope

AOS ยท NYSE

Our analysis suggests that AOS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $56.73, this represents a potential HIDDEN relative to our calculated worth for A. O. Smith Corporation.

Intrinsic Value
Current Price: $56.73

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$28.4B
+ Cash & Equivalents$174.5M
Firm Value$28.5B
- Debt$192.1M
Equity Value$28.3B
/ Shares Outstanding142,472,937B
DCF Value$199
UNDERVALUED BY 251%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$710.8M
$819.1M
$943.9M
$1.1B
$1.3B
$1.4B
$1.7B
$1.9B
$2.2B
$2.5B
Maintenance CapEx
-$16.3M
-$18.8M
-$21.7M
-$25.0M
-$28.8M
-$33.2M
-$38.2M
-$44.0M
-$50.8M
-$58.5M
Owner Earnings
$694.5M
$800.3M
$922.3M
$1.1B
$1.2B
$1.4B
$1.6B
$1.9B
$2.2B
$2.5B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$643.0M
$686.1M
$732.1M
$781.2M
$833.5M
$889.4M
$949.0M
$1.0B
$1.1B
$1.2B
Terminal Value represents 69.1% of Enterprise Value