The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
A.O. Smith Forward PE Ratio Related Terms
A.O. Smith Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for A.O. Smith's Forward PE Ratio 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.
A.O. Smith Forward PE Ratio Chart
A.O. Smith Annual Data
Trend
2018-12
2021-12
2024-12
2025-12
Forward PE Ratio
16.23
24.75
14.43
18.17
A.O. Smith Quarterly Data
2018-09
2018-12
2019-03
2019-06
2019-09
2020-03
2020-09
2021-03
2021-06
2021-12
2022-03
2022-06
2022-09
2023-06
2023-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
20.49
16.23
19.19
16.81
17.95
14.27
21.51
20.75
26.53
24.75
24.39
16.31
15.22
20.96
18.59
14.43
17.55
18.95
17.44
18.17
18.80
MEX:AOS vs NPO, MIDD, FLS: Forward PE Ratio Comparison
For the Specialty Industrial Machinery subindustry, A.O. Smith's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where A.O. Smith's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
A.O. Smith (MEX:AOS) has a Forward PE Ratio of 20.51 as of Jul. 09, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on A.O. Smith and its competitors. According to the industry distribution chart, A.O. Smith ranks #462 out of 1282 companies in the Industrial Products industry, placing it in the top 36%.
Is A.O. Smith's Forward PE Ratio too high?
A.O. Smith's current Forward PE Ratio is 20.51. The Industrial Products industry median Forward PE Ratio is 19.85. A.O. Smith's value of 20.51 is 3.3% above this industry median. Based on the distribution chart, A.O. Smith ranks #462 out of 1282 companies in the Industrial Products industry, which is above the industry midpoint. Overall, A.O. Smith has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's Forward PE Ratio compare to NPO and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #462 out of 1282 companies for Forward PE Ratio. This puts A.O. Smith in the upper half of its industry. The industry median Forward PE Ratio is 19.85. A.O. Smith's value of 20.51 is 3.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Industrial Products company?
The median Forward PE Ratio among Industrial Products companies is 19.85, based on 1,282 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current Forward PE Ratio of 20.51 is 3.3% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median Forward PE Ratio is 19.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current Forward PE Ratio is 20.51. 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 Forward PE Ratio of 20.51. The stock's GF Value™ is MXN1,743.38, compared to a current price of MXN1,347.00 — trading 22.7% below its estimated fair value. The current Forward PE Ratio is 20.51 and 3.3% above the Industrial Products industry median of 19.85. A.O. Smith's overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For A.O. Smith (MEX:AOS), the current Forward PE Ratio is 20.51 as of Jul. 09, 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 22.7% below its estimated GF Value™ of MXN1,743.38.
Key valuation signals for MEX:AOS:
Forward PE Ratio: 20.51
GF Value™: MXN1,743.38 vs. price of MXN1,347.00 (22.7% below fair value)
Industry Position: 3.3% above the Industrial Products median (#462 of 1282)
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.
81GF Score
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