A Fresh Look At AMETEK (AME) Valuation After Recent Share Price Momentum

Event driven snapshot of AMETEK

AMETEK (AME) has come onto investors’ radar without a clear single news catalyst, which puts the focus squarely on its recent share performance and current valuation for anyone tracking industrial and electronics names.

See our latest analysis for AMETEK.

AME’s share price has tracked higher in recent months, with a 30 day share price return of 5.98% and a 90 day share price return of 15.20%. This has contributed to a 1 year total shareholder return of 19.14% that suggests momentum has been building rather than fading.

If AMETEK’s recent move has you thinking about where else strength might be building, this could be a good time to broaden your watchlist with aerospace and defense stocks.

With AMETEK trading at $211.18 and sitting at a small discount to a US$226.53 analyst target, but with an intrinsic value estimate that points to a premium, you have to ask whether there is still a buying opportunity here or if the market is already pricing in future growth.

Most Popular Narrative Narrative: 5.4% Undervalued

Against AMETEK’s last close of $211.18, the most followed narrative points to a fair value of $223.18, putting modest upside on the table and centering the debate on whether earnings and margins can carry that valuation.

EMG and Automation segments are inflecting upwards, with destocking now complete and record orders translating to accelerating organic growth and strong core margin expansion. This shift is poised to further enhance operating leverage and group EBITDA growth in coming quarters.

Read the complete narrative.

Curious what sits behind that confidence in orders and margins. The narrative leans on steady top line expansion, fatter margins, and a richer future earnings multiple. Want to see how those moving parts combine into that fair value call?

Result: Fair Value of $223.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on organic growth holding up and tariff related pricing power not slipping, while acquisition heavy expansion always carries integration and execution risk.

Find out about the key risks to this AMETEK narrative.

Another Angle On Valuation

Our SWS DCF model paints a different picture to the narrative fair value. At a share price of $211.18, the model points to a fair value of $177.28, which suggests AMETEK screens as overvalued on this framework. Which set of assumptions do you find more convincing for the long haul?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AMETEK for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 884 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own AMETEK Narrative

If you would rather test the assumptions yourself, you can pull the key numbers, stress test a few scenarios, and build your own view in minutes with Do it your way.

A great starting point for your AMETEK research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If AMETEK has sparked your interest, do not stop there. The Screener can help you uncover more focused ideas so your watchlist keeps working for you.

• Target potential value upside by scanning these 884 undervalued stocks based on cash flows that may offer more for each dollar you are putting to work.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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