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A.O. SmithAOS +1.57%85 EV-to-OCF is 13.28 as of Aug. 10, 2026, which is 26% below its 10-year median of 18.05. GuruFocus rates AOS with a GF Score™ of 85/100 and a GF Value™ of $75.62 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,073 Industrial Products companies, A.O. Smith ranks worse than 52.85% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, A.O. Smith's Enterprise Value is $9,191 Mil.
A.O. Smith's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $692 Mil. Therefore, A.O. Smith's EV-to-OCF for today is 13.28.
The historical rank and industry rank for A.O. Smith's EV-to-OCF or its related term are showing as below:
AOS'
s EV-to-OCF Range Over the Past 10 Years
Min: 11.6 Med: 18.05 Max: 34.86
Current: 13.28
During the past 13 years, the highest EV-to-OCF of A.O. Smith was 34.86. The lowest was 11.60. And the median was 18.05.
AOS's EV-to-OCF is ranked worse than 52.85% of 3073
companies
in the Industrial Products industry
Industry Median: 11.76
vs AOS: 13.28
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
A.O. Smith's share price for today is $63.98.
A.O. Smith's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.596.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
A.O. Smith EV-to-OCF Related Terms
A.O. Smith EV-to-OCF Historical Data
* Premium members only.
The historical data trend for A.O. Smith's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where A.O. Smith's EV-to-OCF falls into.
A.O. Smith's current Enterprise Value is $9,191 Mil.
A.O. Smith's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $692 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 (AOS) has a EV-to-OCF of 13.28 as of Aug. 10, 2026. This is 26% below median its historical median of 18.05. Over the past decade, A.O. Smith's EV-to-OCF has ranged from 11.60 to 34.86. According to the industry distribution chart, A.O. Smith ranks #1624 out of 3073 companies in the Industrial Products industry, placing it in the top 52.8%.
Is A.O. Smith's EV-to-OCF too high?
A.O. Smith's current EV-to-OCF of 13.28 is 26% below median its 10-year median of 18.05. Over the past 10 years, this metric has ranged from a low of 11.60 to a high of 34.86. The Industrial Products industry median EV-to-OCF is 11.76. A.O. Smith's value of 13.28 is 12.9% above this industry median. Based on the distribution chart, A.O. Smith ranks #1624 out of 3073 companies in the Industrial Products industry, which is below the industry midpoint. Overall, A.O. Smith has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's EV-to-OCF compare to FLS and JBTM?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #1624 out of 3073 companies for EV-to-OCF. This places A.O. Smith in the lower half of its industry. The industry median EV-to-OCF is 11.76. A.O. Smith's value of 13.28 is 12.9% above this benchmark. Historically, A.O. Smith's own EV-to-OCF has ranged from 11.60 to 34.86 over the past decade. While the company's 10-year median is 18.05 vs. the industry median of 11.76, A.O. Smith has consistently been above 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-OCF for an Industrial Products company?
The median EV-to-OCF among Industrial Products companies is 11.76, based on 3,073 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current EV-to-OCF of 13.28 is 12.9% above 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median EV-to-OCF is 11.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current EV-to-OCF is 13.28, which is 26% below median its own 10-year median of 18.05. 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?
Based on GuruFocus' analysis, A.O. Smith (AOS) is currently considered Modestly Undervalued. The stock's GF Value™ is $75.62, compared to a current price of $63.98 — trading 15.4% below its estimated fair value. The current EV-to-OCF is 13.28, which is 26% below median its 10-year median of 18.05 and 12.9% above the Industrial Products industry median of 11.76. A.O. Smith's overall GF Score™ is 85/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For A.O. Smith (AOS), the current EV-to-OCF is 13.28 as of Aug. 10, 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 (AOS) Overvalued in 2026?
Based on GuruFocus' analysis, A.O. Smith stock appears to be undervalued.
The current stock price of $63.98 is trading 15.4% below its estimated GF Value™ of $75.62.
GuruFocus considers A.O. Smith to be Modestly Undervalued.
Key valuation signals for AOS:
EV-to-OCF: 13.28 (26% below median its 10-year median of 18.05)
GF Value™: $75.62 vs. price of $63.98 (15.4% below fair value)
Industry Position: 12.9% above the Industrial Products median (#1624 of 3073)
No single metric tells the full story. See the 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.
85GF Score
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