Is AMETEK, Inc. (AME) Fairly Valued?
AMETEK, Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 10, 2026.
By TGMCharts Research · Data as of · Updated
AMETEK, Inc.'s market valuation requires careful balancing. The stock is priced at 35.34x trailing earnings, while the third-party analyst DCF (FMP) reference sits at $175, indicating that the market is pricing in a premium relative to modeled cash flows.
The core of the valuation debate rests on whether a five-year revenue CAGR of 10.27% and a five-year EPS CAGR of 11.06%, supported by a strong net margin of 20.11%, are sufficient to justify the current multiple. While profitability remains high, cash flow trends have softened, demanding a disciplined look at the underlying fundamentals.
- AMETEK, Inc. closed at $234 on July 10, 2026.
- Trailing P/E is 35.34x and price-to-sales is 7.08x.
- Analyst DCF (FMP) is $175 with margin of safety at -25.07%.
- Five-year revenue CAGR is 10.27% and five-year EPS CAGR is 11.06%.
- Earnings yield is 2.83% and net margin is 20.11%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
The Burden of Proof on a Premium Multiple
When assessing AMETEK, Inc., the primary analytical task is evaluating whether the underlying business expansion can carry the stock's current premium multiple. Closing at $234 on July 10, 2026, the equity commands a trailing price-to-earnings ratio of 35.34x. This valuation sits above the independent analyst-DCF (FMP) reference, creating a negative margin of safety of -25.07%.
Rather than relying on a single isolated metric, this fundamental analysis connects multiple valuation dimensions—including price-to-sales, earnings yield, and historical growth rates—to determine if the market's pricing is fundamentally supported. If these operational indicators align, the premium multiple is easier to defend; if they diverge, caution is warranted.
Assessing the Multiples the Market Commands
The market currently prices the business at a price-to-sales ratio of 7.08x, which corresponds to an earnings yield of 2.83%. This yield represents the raw return generated on trailing earnings relative to the current market price, serving as a useful reality check against the headline price-to-earnings multiple.
AME P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 35.34x as of July 10, 2026.
A P/E ratio of 35.34x has to be judged against the company's five-year EPS CAGR of 11.06%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
AME price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 7.08x.
Price-to-sales at 7.08x is most useful beside net margin of 20.11%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Comparing Current Price to DCF Benchmarks
As a secondary reference point, the third-party analyst DCF (FMP) model estimates the fair value of the business at $175. With the market price trading above this level, the resulting margin of safety is -25.07%. This calculation is an independent benchmark rather than an official TGMCharts valuation, and investors should note that alternative modeling scenarios can yield different fair value ranges.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
AME earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 2.83%.
The earnings yield of 2.83% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Do Top-Line and Per-Share Growth Support the Price?
A premium valuation is fundamentally dependent on consistent business expansion. Over the past five years, the company has delivered a revenue CAGR of 10.27% alongside a five-year EPS CAGR of 11.06%. These growth rates show that while the business is expanding at a steady double-digit pace, the market multiple has expanded ahead of the underlying rate of compounding.
AME revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 10.27%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 10.27% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
AME EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 11.06%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 11.06% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Profitability Quality and Sales Multiple Defense
High operational efficiency can make a premium multiple more defensible. The company boasts a net margin of 20.11%, which helps translate its top-line sales multiple of 7.08x into robust net income. However, because net margins are already highly optimized, there may be limited room for further operational leverage to expand earnings if sales growth moderates.
AME net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 20.11%. The bars below are annual fiscal years.
Net margin of 20.11% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Weighing the Bull and Bear Structural Arguments
The optimistic case for the stock relies on the durability of its high margins and steady historical compounding, where a five-year EPS CAGR of 11.06% provides a strong fundamental anchor. Conversely, the cautious view highlights that the stock's trailing P/E ratio of 35.34x and its negative margin of safety of -25.07% leave little room for operational error, especially given that free cash flow growth has recently turned negative.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 10.27% and five-year EPS CAGR of 11.06% support the business case.
- Net margin of 20.11% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 35.34x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -25.07% should change the valuation read if it deteriorates after refresh.
Key Operational Signposts to Monitor
Several developments could alter this valuation perspective. A significant shift in the analyst-DCF (FMP) fair value estimate, a narrowing of the gap between the market price and the $175 reference, or a deceleration in the five-year EPS growth trend would require a reassessment of the stock's pricing. This analysis is updated daily to ensure all metrics remain aligned with the latest reported financial results.
Balanced Fundamental Conclusion
In conclusion, supporting AMETEK, Inc.'s current market price requires sustained execution across multiple fronts. The company's strong net margin of 20.11% and steady historical growth must persist to justify its premium multiples. All data presented in this note is derived from verified financial filings and is intended solely for objective research purposes, rather than personalized investment advice.
FAQ
Is AME fairly valued?
AMETEK, Inc. trades at 35.34x trailing earnings with an analyst-DCF (FMP) margin of safety of -25.07%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 10.27% and five-year EPS CAGR of 11.06%.
What valuation metric matters most for AME?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this AME valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 10, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $175.
- A break in five-year EPS support, currently 11.06%.
- Margin quality drifting away from the latest net margin of 20.11%.
The bottom line
AMETEK, Inc. valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: AME fundamentalsContinue with AMETEK, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-04-30 · period 2026-03-31 · SEC EDGAR source
- “Segment operating margins, as a percentage of net sales, increased to 28.2% for the first quarter of 2026, compared with 27.9% for the first quarter of 2025.”
- “For the first three months of 2026, total borrowings decreased by $82.7 million compared with a $185.1 million decrease for the first three months of 2025.”
- “Excluding the dilutive impact of recent acquisitions and acquisition-related costs, segment operating margins increased 130 basis points compared to the first quarter of 2025 due to the sales increase discussed above, as well as continued benefits from the Company's Operational Excellence initiatives.”
- “Excluding the dilutive impact of recent acquisitions and acquisition-related costs, operating margins increased 130 basis points compared to the first quarter of 2025 due to the sales increase discussed above, as well as continued benefits from the Company's Operational Excellence initiatives.”
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