Rockwell Automation, Inc. (ROK) DCF Valuation
Transparent DCF models put Rockwell Automation, Inc. (ROK)'s fair value in a range of $118.81 – $119.32 — 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 $442.00 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 $442.00, the market is pricing in roughly +21.1%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +3.0%. The price is betting on acceleration above its track record.
Current Price
$442.00
Fair-Value Range
$118.81 – $119.32
Market-Implied Growth
+21.1%/yr
vs +3.0% 5Y actual
ROK 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 $973.3M · 0.11B shares · net debt $2.8B
Estimated Fair Value
$118.81
-73.1% vs $442.00
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 $442.00; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $154 | $163 | $174 | $187 | $202 |
| 9.0% | $128 | $135 | $142 | $150 | $160 |
| 10.0% | $109 | $114 | $119 | $125 | $131 |
| 11.0% | $94.25 | $97.51 | $101 | $105 | $110 |
| 12.0% | $82.09 | $84.54 | $87.25 | $90.26 | $93.62 |
About Rockwell Automation, Inc.
Rockwell Automation, Inc., established in 1903 and headquartered in Milwaukee, Wisconsin, is a global leader in providing industrial automation and digital transformation solutions. The company's operations are segmented into three key areas: Intelligent Devices, Software & Control, and Lifecycle Services. The Intelligent Devices segment offers various hardware products such as drives, motion control systems, safety and sensing equipment, industrial components, and customized configurations. The Software & Control division provides essential control and visualization software and accompanying hardware, information management platforms, digital twin and simulation tools, and network and cybersecurity infrastructure. The Lifecycle Services segment completes its offering with expert consulting, professional implementation, and ongoing connected and maintenance support. Rockwell Automation distributes its comprehensive array of hardware, software, and services worldwide through a network of independent distributors, complemented by its direct sales force. Its extensive clientele spans diverse sectors, including discrete manufacturing (like automotive, semiconductors, and logistics), general industries (such as printing, marine, and aerospace), hybrid markets (encompassing food & beverage, life sciences, and eco-industrial applications like water management and renewable energy), and process industries (including oil & gas, mining, and chemicals).
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Blake D. Moret