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A.O. SmithMEX:AOS 79 EV-to-EBIT is 11.58 as of Jul. 19, 2026, which is 31% below its 10-year median of 16.74. GuruFocus rates MEX:AOS with a GF Score™ of 79/100 and a GF Value™ of MXN1,763.35. The stock has 1 warning sign investors should review. Among 2,370 Industrial Products companies, A.O. Smith ranks better than 70.34% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
A.O. Smith's Enterprise Value for the quarter that ended in Mar. 2026 was MXN194,779 Mil.
A.O. Smith's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN12,953 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A.O. Smith EV-to-EBIT Related Terms
A.O. Smith EV-to-EBIT Historical Data
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The historical data trend for A.O. Smith's EV-to-EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, A.O. Smith's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
A.O. Smith EV-to-EBIT vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where A.O. Smith's EV-to-EBIT falls into.
A.O. Smith's current Enterprise Value is MXN150,030 Mil.
A.O. Smith's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN12,953 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A.O. Smith (MEX:AOS) has a EV-to-EBIT of 11.58 as of Jul. 19, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on A.O. Smith and its competitors. This is 31% below median its historical median of 16.74. Over the past decade, A.O. Smith's EV-to-EBIT has ranged from 11.33 to 44.87. According to the industry distribution chart, A.O. Smith ranks #703 out of 2370 companies in the Industrial Products industry, placing it in the top 29.7%.
Is A.O. Smith's EV-to-EBIT too high?
A.O. Smith's current EV-to-EBIT of 11.58 is 31% below median its 10-year median of 16.74. Over the past 10 years, this metric has ranged from a low of 11.33 to a high of 44.87. The Industrial Products industry median EV-to-EBIT is 19.22. A.O. Smith's value of 11.58 is 39.8% below this industry median. Based on the distribution chart, A.O. Smith ranks #703 out of 2370 companies in the Industrial Products industry, which is above the industry midpoint. Overall, A.O. Smith has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's EV-to-EBIT compare to NPO and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #703 out of 2370 companies for EV-to-EBIT. This puts A.O. Smith in the upper half of its industry. The industry median EV-to-EBIT is 19.22. A.O. Smith's value of 11.58 is 39.8% below this benchmark. Historically, A.O. Smith's own EV-to-EBIT has ranged from 11.33 to 44.87 over the past decade. While the company's 10-year median is 16.74 vs. the industry median of 19.22, A.O. Smith has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Industrial Products company?
The median EV-to-EBIT among Industrial Products companies is 19.22, based on 2,370 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current EV-to-EBIT of 11.58 is 39.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median EV-to-EBIT is 19.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current EV-to-EBIT is 11.58, which is 31% below median its own 10-year median of 16.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A.O. Smith stock overvalued right now?
A.O. Smith (MEX:AOS) has a current EV-to-EBIT of 11.58. The stock's GF Value™ is MXN1,763.35, compared to a current price of MXN1,347.00 — trading 23.6% below its estimated fair value. The current EV-to-EBIT is 11.58, which is 31% below median its 10-year median of 16.74 and 39.8% below the Industrial Products industry median of 19.22. A.O. Smith's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For A.O. Smith (MEX:AOS), the current EV-to-EBIT is 11.58 as of Jul. 19, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is A.O. Smith (MEX:AOS) Overvalued in 2026?
Based on GuruFocus' analysis, A.O. Smith stock appears to be undervalued.
The current stock price of MXN1,347.00 is trading 23.6% below its estimated GF Value™ of MXN1,763.35.
Key valuation signals for MEX:AOS:
EV-to-EBIT: 11.58 (31% below median its 10-year median of 16.74)
GF Value™: MXN1,763.35 vs. price of MXN1,347.00 (23.6% below fair value)
Industry Position: 39.8% below the Industrial Products median (#703 of 2370)
No single metric tells the full story. See the MEX:AOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (80% of sales) and rest of world (20% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 36% and 52% market share, respectively. Residential water heaters account for most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered in the mid-1990s.
79GF Score
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