AMETEK, Inc. (AME) DCF Valuation
Transparent DCF models put AMETEK, Inc. (AME)'s fair value in a range of $99.02 – $178.83 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $229.80 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $229.80, the market is pricing in roughly +15.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +6.9%. The price is betting on acceleration above its track record.
Current Price
$229.80
Fair-Value Range
$99.02 – $178.83
Market-Implied Growth
+15.9%/yr
vs +6.9% 5Y actual
AME DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.5B · 0.23B shares · net debt $1.8B
Estimated Fair Value
$99.02
-56.9% vs $229.80
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $229.80; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $125 | $132 | $140 | $150 | $161 |
| 9.0% | $106 | $111 | $116 | $123 | $130 |
| 10.0% | $91.95 | $95.26 | $99.02 | $103 | $108 |
| 11.0% | $80.72 | $83.15 | $85.86 | $88.92 | $92.38 |
| 12.0% | $71.67 | $73.49 | $75.51 | $77.75 | $80.26 |
About AMETEK, Inc.
AMETEK, Inc. is a global enterprise that develops and markets a diverse portfolio of electronic instruments and electromechanical devices. The company's operations are structured into two principal divisions: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). The EIG segment provides sophisticated instrumentation solutions catering to various sectors, including process control, aerospace, power generation, and general industrial applications. It also delivers specialized process and analytical tools essential for industries such as oil and gas, petrochemicals, pharmaceuticals, semiconductors, automation, and food and beverage production. Furthermore, EIG supplies equipment for laboratory settings, ultra-precision manufacturing, medical diagnostics, and critical test and measurement tasks. Its offerings encompass power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility testing apparatus, gas turbine components, environmental health and safety sensors, dashboard instruments for heavy vehicles, and specialized controls for food and beverage processing. For the aviation sector, EIG manufactures aircraft and engine sensors, monitoring systems, power units, fuel and fluid measurement systems, and data acquisition solutions. The EMG segment is known for its advanced engineered electrical connectors and protective electronics packaging, safeguarding sensitive and mission-critical components. It produces high-precision motion control products crucial for applications like data storage, medical devices, office equipment, and automated systems. This segment also manufactures specialized materials, including high-purity powdered metals, strips and foils, unique clad metals, and metal matrix composites. Additionally, EMG supplies motor-blower systems and heat exchangers for thermal regulation in military and commercial aircraft, and ground vehicles. It provides motors for diverse uses, such as commercial appliances, fitness machines, food and beverage processing equipment, hydraulic pumps, and industrial fans. A key service offered by EMG is its network of aviation maintenance, repair, and overhaul (MRO) facilities. Beyond these core segments, the company also offers communication solutions tailored for clinical and educational environments. Established in 1930, AMETEK, Inc. maintains its headquarters in Berwyn, Pennsylvania.
- Sector
- Industrials
- Industry
- Electrical Equipment & Parts
- CEO
- David A. Zapico