Is A. O. Smith Corporation (AOS) Undervalued?
Based on the current stock price of $67.76 and a P/E ratio of 18.26,A. O. Smith Corporation has a PEG ratio of 10.09.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 10.09, AOS appears to be potentially overvalued relative to its growth rate of 1.81%.
Based on a PEG ratio of 4.74 (adjusted for dividends).
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How we analyzed AOS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 18.26and dividing it by the annual growth rate of 1.81%.
PEG = 18.26 (P/E) ÷ 1.81 (Growth) = 10.09
Frequently Asked Questions about AOS
What is the current PEG Ratio for A. O. Smith Corporation (AOS)?+
The current PEG Ratio for A. O. Smith Corporation is 10.09. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AOS stock undervalued right now?+
Based on the PEG ratio of 10.09, A. O. Smith Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AOS?+
The PEGY ratio for A. O. Smith Corporation is 4.74. This metric accounts for dividend yield (2.04%), providing a more complete valuation picture.