Intrinsic value of Ametek - AME

Previous Close

$63.11

  Intrinsic Value

$77.18

stock screener

  Rating & Target

buy

+22%

  Value-price divergence*

-27%

Previous close

$63.11

 
Intrinsic value

$77.18

 
Up/down potential

+22%

 
Rating

buy

 
Value-price divergence*

-27%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AME stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 14.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -3.37
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.77
  5.70
  5.63
  5.56
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
  5.08
Revenue, $m
  3,840
  4,101
  4,373
  4,655
  4,949
  5,255
  5,573
  5,905
  6,251
  6,612
  6,989
  7,382
  7,793
  8,223
  8,671
  9,141
  9,631
  10,145
  10,683
  11,246
  11,836
  12,453
  13,100
  13,779
  14,490
  15,235
  16,016
  16,836
  17,695
  18,597
  19,542
Variable operating expenses, $m
 
  867
  905
  946
  988
  1,031
  1,077
  1,124
  1,173
  1,225
  1,278
  1,053
  1,111
  1,172
  1,236
  1,303
  1,373
  1,447
  1,523
  1,604
  1,688
  1,776
  1,868
  1,965
  2,066
  2,172
  2,284
  2,401
  2,523
  2,652
  2,786
Fixed operating expenses, $m
 
  2,319
  2,377
  2,436
  2,497
  2,559
  2,623
  2,689
  2,756
  2,825
  2,896
  2,968
  3,042
  3,118
  3,196
  3,276
  3,358
  3,442
  3,528
  3,616
  3,707
  3,799
  3,894
  3,992
  4,091
  4,194
  4,298
  4,406
  4,516
  4,629
  4,745
Total operating expenses, $m
  3,038
  3,186
  3,282
  3,382
  3,485
  3,590
  3,700
  3,813
  3,929
  4,050
  4,174
  4,021
  4,153
  4,290
  4,432
  4,579
  4,731
  4,889
  5,051
  5,220
  5,395
  5,575
  5,762
  5,957
  6,157
  6,366
  6,582
  6,807
  7,039
  7,281
  7,531
Operating income, $m
  802
  916
  1,091
  1,273
  1,464
  1,664
  1,873
  2,093
  2,322
  2,563
  2,815
  3,362
  3,640
  3,932
  4,239
  4,561
  4,900
  5,257
  5,632
  6,026
  6,441
  6,878
  7,338
  7,822
  8,332
  8,869
  9,434
  10,029
  10,656
  11,316
  12,011
EBITDA, $m
  982
  1,277
  1,457
  1,645
  1,842
  2,048
  2,263
  2,489
  2,725
  2,973
  3,232
  3,505
  3,791
  4,091
  4,407
  4,738
  5,087
  5,453
  5,838
  6,244
  6,670
  7,119
  7,592
  8,089
  8,613
  9,164
  9,744
  10,355
  10,998
  11,676
  12,389
Interest expense (income), $m
  0
  72
  80
  89
  98
  108
  118
  128
  139
  150
  162
  174
  187
  200
  214
  229
  244
  260
  277
  294
  312
  331
  351
  372
  394
  417
  442
  467
  494
  521
  551
Earnings before tax, $m
  693
  844
  1,010
  1,184
  1,366
  1,556
  1,756
  1,964
  2,183
  2,412
  2,653
  3,188
  3,453
  3,732
  4,025
  4,332
  4,656
  4,997
  5,355
  5,732
  6,129
  6,547
  6,987
  7,450
  7,938
  8,451
  8,992
  9,562
  10,162
  10,794
  11,460
Tax expense, $m
  181
  228
  273
  320
  369
  420
  474
  530
  589
  651
  716
  861
  932
  1,008
  1,087
  1,170
  1,257
  1,349
  1,446
  1,548
  1,655
  1,768
  1,886
  2,011
  2,143
  2,282
  2,428
  2,582
  2,744
  2,914
  3,094
Net income, $m
  512
  616
  737
  864
  997
  1,136
  1,282
  1,434
  1,594
  1,761
  1,937
  2,327
  2,521
  2,724
  2,938
  3,163
  3,399
  3,648
  3,909
  4,185
  4,474
  4,779
  5,100
  5,438
  5,795
  6,170
  6,564
  6,980
  7,418
  7,880
  8,366

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  717
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  7,101
  6,812
  7,263
  7,733
  8,221
  8,729
  9,258
  9,809
  10,384
  10,984
  11,610
  12,263
  12,946
  13,659
  14,404
  15,184
  15,999
  16,852
  17,746
  18,681
  19,660
  20,686
  21,761
  22,888
  24,069
  25,307
  26,605
  27,966
  29,394
  30,891
  32,462
Adjusted assets (=assets-cash), $m
  6,384
  6,812
  7,263
  7,733
  8,221
  8,729
  9,258
  9,809
  10,384
  10,984
  11,610
  12,263
  12,946
  13,659
  14,404
  15,184
  15,999
  16,852
  17,746
  18,681
  19,660
  20,686
  21,761
  22,888
  24,069
  25,307
  26,605
  27,966
  29,394
  30,891
  32,462
Revenue / Adjusted assets
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
Average production assets, $m
  1,940
  2,071
  2,208
  2,351
  2,499
  2,654
  2,815
  2,982
  3,157
  3,339
  3,530
  3,728
  3,936
  4,152
  4,379
  4,616
  4,864
  5,123
  5,395
  5,679
  5,977
  6,289
  6,616
  6,958
  7,317
  7,694
  8,088
  8,502
  8,936
  9,391
  9,869
Working capital, $m
  1,004
  603
  643
  684
  727
  772
  819
  868
  919
  972
  1,027
  1,085
  1,146
  1,209
  1,275
  1,344
  1,416
  1,491
  1,570
  1,653
  1,740
  1,831
  1,926
  2,025
  2,130
  2,240
  2,354
  2,475
  2,601
  2,734
  2,873
Total debt, $m
  2,342
  2,299
  2,551
  2,813
  3,085
  3,369
  3,664
  3,972
  4,292
  4,627
  4,976
  5,341
  5,722
  6,120
  6,536
  6,970
  7,426
  7,902
  8,400
  8,922
  9,468
  10,041
  10,641
  11,270
  11,929
  12,619
  13,344
  14,103
  14,900
  15,735
  16,612
Total liabilities, $m
  3,844
  3,801
  4,053
  4,315
  4,587
  4,871
  5,166
  5,474
  5,794
  6,129
  6,478
  6,843
  7,224
  7,622
  8,038
  8,472
  8,928
  9,404
  9,902
  10,424
  10,970
  11,543
  12,143
  12,772
  13,431
  14,121
  14,846
  15,605
  16,402
  17,237
  18,114
Total equity, $m
  3,257
  3,011
  3,210
  3,418
  3,634
  3,858
  4,092
  4,336
  4,590
  4,855
  5,132
  5,420
  5,722
  6,037
  6,367
  6,711
  7,072
  7,449
  7,844
  8,257
  8,690
  9,143
  9,619
  10,117
  10,639
  11,186
  11,759
  12,361
  12,992
  13,654
  14,348
Total liabilities and equity, $m
  7,101
  6,812
  7,263
  7,733
  8,221
  8,729
  9,258
  9,810
  10,384
  10,984
  11,610
  12,263
  12,946
  13,659
  14,405
  15,183
  16,000
  16,853
  17,746
  18,681
  19,660
  20,686
  21,762
  22,889
  24,070
  25,307
  26,605
  27,966
  29,394
  30,891
  32,462
Debt-to-equity ratio
  0.719
  0.760
  0.790
  0.820
  0.850
  0.870
  0.900
  0.920
  0.940
  0.950
  0.970
  0.990
  1.000
  1.010
  1.030
  1.040
  1.050
  1.060
  1.070
  1.080
  1.090
  1.100
  1.110
  1.110
  1.120
  1.130
  1.130
  1.140
  1.150
  1.150
  1.160
Adjusted equity ratio
  0.398
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  512
  616
  737
  864
  997
  1,136
  1,282
  1,434
  1,594
  1,761
  1,937
  2,327
  2,521
  2,724
  2,938
  3,163
  3,399
  3,648
  3,909
  4,185
  4,474
  4,779
  5,100
  5,438
  5,795
  6,170
  6,564
  6,980
  7,418
  7,880
  8,366
Depreciation, amort., depletion, $m
  180
  361
  367
  372
  378
  384
  390
  396
  403
  410
  417
  143
  151
  159
  168
  177
  186
  196
  207
  218
  229
  241
  253
  267
  280
  295
  310
  326
  342
  360
  378
Funds from operations, $m
  806
  977
  1,104
  1,236
  1,375
  1,520
  1,671
  1,830
  1,997
  2,171
  2,354
  2,470
  2,671
  2,883
  3,106
  3,340
  3,585
  3,844
  4,116
  4,402
  4,703
  5,020
  5,354
  5,705
  6,075
  6,464
  6,874
  7,306
  7,761
  8,240
  8,744
Change in working capital, $m
  49
  38
  40
  42
  43
  45
  47
  49
  51
  53
  55
  58
  60
  63
  66
  69
  72
  76
  79
  83
  87
  91
  95
  100
  105
  110
  115
  120
  126
  133
  139
Cash from operations, $m
  757
  939
  1,064
  1,195
  1,332
  1,475
  1,624
  1,781
  1,946
  2,118
  2,299
  2,412
  2,611
  2,820
  3,040
  3,271
  3,513
  3,768
  4,037
  4,319
  4,617
  4,929
  5,259
  5,605
  5,970
  6,355
  6,759
  7,186
  7,635
  8,107
  8,605
Maintenance CAPEX, $m
  0
  -74
  -79
  -85
  -90
  -96
  -102
  -108
  -114
  -121
  -128
  -135
  -143
  -151
  -159
  -168
  -177
  -186
  -196
  -207
  -218
  -229
  -241
  -253
  -267
  -280
  -295
  -310
  -326
  -342
  -360
New CAPEX, $m
  -63
  -131
  -137
  -143
  -148
  -154
  -161
  -168
  -175
  -182
  -190
  -199
  -207
  -217
  -227
  -237
  -248
  -259
  -272
  -284
  -298
  -312
  -327
  -343
  -359
  -376
  -395
  -414
  -434
  -455
  -478
Cash from investing activities, $m
  -452
  -205
  -216
  -228
  -238
  -250
  -263
  -276
  -289
  -303
  -318
  -334
  -350
  -368
  -386
  -405
  -425
  -445
  -468
  -491
  -516
  -541
  -568
  -596
  -626
  -656
  -690
  -724
  -760
  -797
  -838
Free cash flow, $m
  305
  733
  848
  968
  1,093
  1,225
  1,362
  1,506
  1,657
  1,815
  1,980
  2,078
  2,261
  2,453
  2,654
  2,866
  3,088
  3,323
  3,569
  3,828
  4,101
  4,388
  4,691
  5,009
  5,345
  5,698
  6,070
  6,462
  6,875
  7,310
  7,768
Issuance/(repayment) of debt, $m
  457
  236
  252
  262
  272
  284
  295
  308
  321
  335
  349
  365
  381
  398
  416
  435
  455
  476
  498
  522
  547
  573
  600
  629
  659
  691
  724
  760
  797
  836
  876
Issuance/(repurchase) of shares, $m
  -336
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  140
  236
  252
  262
  272
  284
  295
  308
  321
  335
  349
  365
  381
  398
  416
  435
  455
  476
  498
  522
  547
  573
  600
  629
  659
  691
  724
  760
  797
  836
  876
Total cash flow (excl. dividends), $m
  419
  970
  1,099
  1,229
  1,366
  1,508
  1,657
  1,814
  1,977
  2,149
  2,330
  2,443
  2,642
  2,850
  3,070
  3,301
  3,543
  3,799
  4,067
  4,350
  4,648
  4,961
  5,291
  5,638
  6,004
  6,389
  6,794
  7,222
  7,671
  8,145
  8,644
Retained Cash Flow (-), $m
  -2
  -192
  -199
  -207
  -216
  -225
  -234
  -244
  -254
  -265
  -277
  -289
  -302
  -315
  -329
  -345
  -360
  -377
  -395
  -413
  -433
  -454
  -475
  -498
  -522
  -547
  -574
  -602
  -631
  -662
  -694
Prev. year cash balance distribution, $m
 
  438
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,216
  900
  1,022
  1,150
  1,283
  1,423
  1,570
  1,723
  1,884
  2,053
  2,154
  2,340
  2,535
  2,740
  2,956
  3,183
  3,422
  3,673
  3,937
  4,215
  4,507
  4,816
  5,140
  5,482
  5,842
  6,221
  6,620
  7,040
  7,483
  7,950
Discount rate, %
 
  5.10
  5.36
  5.62
  5.90
  6.20
  6.51
  6.83
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.27
  12.89
  13.53
  14.21
  14.92
  15.66
  16.45
  17.27
  18.13
  19.04
  19.99
  20.99
PV of cash for distribution, $m
 
  1,157
  811
  867
  914
  950
  975
  988
  990
  980
  959
  895
  858
  811
  758
  698
  635
  569
  502
  436
  373
  314
  259
  210
  167
  130
  99
  74
  53
  38
  26
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

AMETEK, Inc. manufactures electronic instruments and electromechanical devices worldwide. Its Electronic Instruments Group segment offers advanced instruments for the process, power and industrial, and aerospace markets; process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor, and automation markets; instruments for the laboratory equipment, ultraprecision manufacturing, medical, and test and measurement markets; and vision systems to inspect surfaces. This segment also provides aircraft and engine sensors, monitoring systems, power instruments, data acquisition units, and fuel and fluid measurement systems for the aerospace industry; power quality monitoring and metering devices, industrial battery chargers, uninterruptible power supplies, programmable power and electrical test equipment, and gas turbine sensors; and dashboard instruments for heavy trucks and other vehicles, as well as timing controls and cooking computers for the food service industry. Its Electromechanical Group segment offers thermal management systems, specialty metals, and electrical interconnects; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; engineered electrical connectors and packaging products to protect sensitive electronic devices; floor care and specialty motors; and metal tubing products. This segment also provides high-purity metals, metal strips, shaped wires, and advanced composites for various industrial applications; and motors used in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, industrial blowers, and vacuum cleaners, as well as operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and education communication solutions for hospitals, health systems, and educational facilities. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.

FINANCIAL RATIOS  of  Ametek (AME)

Valuation Ratios
P/E Ratio 28.3
Price to Sales 3.8
Price to Book 4.4
Price to Tangible Book
Price to Cash Flow 19.1
Price to Free Cash Flow 20.9
Growth Rates
Sales Growth Rate -3.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -8.7%
Cap. Spend. - 3 Yr. Gr. Rate 0%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 63.3%
Total Debt to Equity 71.9%
Interest Coverage 0
Management Effectiveness
Return On Assets 7.4%
Ret/ On Assets - 3 Yr. Avg. 9.3%
Return On Total Capital 9.5%
Ret/ On T. Cap. - 3 Yr. Avg. 11.1%
Return On Equity 15.7%
Return On Equity - 3 Yr. Avg. 17.4%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 35.9%
Gross Margin - 3 Yr. Avg. 35.7%
EBITDA Margin 22.7%
EBITDA Margin - 3 Yr. Avg. 24.8%
Operating Margin 20.9%
Oper. Margin - 3 Yr. Avg. 22%
Pre-Tax Margin 18%
Pre-Tax Margin - 3 Yr. Avg. 19.4%
Net Profit Margin 13.3%
Net Profit Margin - 3 Yr. Avg. 14.2%
Effective Tax Rate 26.1%
Eff/ Tax Rate - 3 Yr. Avg. 26.7%
Payout Ratio 16.2%

AME stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AME stock intrinsic value calculation we used $3840 million for the last fiscal year's total revenue generated by Ametek. The default revenue input number comes from 2016 income statement of Ametek. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AME stock valuation model: a) initial revenue growth rate of 6.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.1%, whose default value for AME is calculated based on our internal credit rating of Ametek, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Ametek.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AME stock the variable cost ratio is equal to 21.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2262 million in the base year in the intrinsic value calculation for AME stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Ametek.

Corporate tax rate of 27% is the nominal tax rate for Ametek. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AME stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AME are equal to 50.5%.

Life of production assets of 26.1 years is the average useful life of capital assets used in Ametek operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AME is equal to 14.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3257 million for Ametek - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 227.289 million for Ametek is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Ametek at the current share price and the inputted number of shares is $14.3 billion.

RELATED COMPANIES Price Int.Val. Rating
KEYS Keysight Techn 41.79 35.27  hold
FTV Fortive 66.15 43.03  sell
BRKR Bruker 27.97 13.82  str.sell
EMR Emerson Electr 59.32 44.92  sell
ESE ESCO Technolog 54.15 104.77  str.buy
DOV Dover 85.36 176.49  str.buy
ESL Esterline Tech 85.25 85.34  hold
TDY Teledyne Techn 147.29 113.11  hold
DHR Danaher 81.56 68.69  hold

COMPANY NEWS

▶ AMETEK, Inc. Value Analysis (NYSE:AME) : August 7, 2017   [Aug-07-17 05:12PM  Capital Cube]
▶ Ametek (AME) Beats on Earnings, Revenues in Q2   [Aug-02-17 12:31PM  Zacks]
▶ The Top Dividend-Growing Healthcare and Industrials Stocks   [Jul-12-17 02:44PM  Market Realist]
▶ ETFs with exposure to AMETEK, Inc. : July 4, 2017   [Jul-04-17 02:31PM  Capital Cube]
▶ ETFs with exposure to AMETEK, Inc. : June 22, 2017   [Jun-22-17 03:19PM  Capital Cube]
▶ AMETEK Executive Chairman Frank S. Hermance To Retire   [Jun-05-17 08:00AM  PR Newswire]
▶ Mocon Inc. to be acquired by Ametek Inc.   [Apr-17-17 03:15PM  American City Business Journals]
▶ AMETEK to Acquire MOCON, Inc.   [08:00AM  PR Newswire]
▶ ETFs with exposure to AMETEK, Inc. : April 7, 2017   [Apr-07-17 03:45PM  Capital Cube]
▶ These Four Stocks Perform Well in March   [Mar-06-17 01:00PM  Investopedia]
▶ ETFs with exposure to AMETEK, Inc. : February 14, 2017   [Feb-14-17 02:22PM  Capital Cube]
▶ AMETEK Acquires Rauland-Borg Corporation   [06:45AM  PR Newswire]
Stock chart of AME Financial statements of AME
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.