Applied Industrial Technologies, Inc. (AIT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-14.3%

$258.27

vs $301.38 price

Levered DCF

$395.46

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

9.95

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	30.49×	22.66×	19.06×	16.13×	14.38×	24.41×	100.63×	16.4×
P/B	6.79×	4.83×	4.36×	3.83×	3.22×	3.78×	2.86×	2.63×
P/S	2.54×	1.95×	1.64×	1.27×	0.97×	1.09×	0.74×	0.68×
EV / EBITDA	21.02×	15.67×	13.36×	11.12×	10.52×	15.94×	10.88×	10.79×
Gross margin	30.3%	30.3%	29.8%	29.2%	29.0%	28.9%	28.9%	29.0%
Operating margin	11.1%	10.9%	11.1%	10.7%	9.4%	6.3%	2.7%	6.7%
Net margin	8.3%	8.6%	8.6%	7.9%	6.8%	4.5%	0.7%	4.1%
Current ratio	2.58×	3.32×	3.53×	3.05×	2.72×	2.8×	2.72×	2.71×
Debt / equity	0.26×	0.31×	0.44×	0.43×	0.7×	0.99×	1.11×	1.07×
Interest coverage	69.22×	14.52×	24.13×	19.09×	13.36×	6.67×	2.39×	5.73×
Dividend yield	0.6%	0.7%	0.8%	1.0%	1.4%	1.4%	2.0%	2.0%
Payout ratio	17.5%	16.2%	14.5%	15.4%	20.1%	35.0%	203.3%	32.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	22.3%	21.3%	22.8%	23.8%	22.4%	15.5%	2.9%	16.1%
Return on invested capital	17.1%	14.8%	15.3%	16.4%	13.8%	8.8%	2.0%	8.8%
Return on assets	13.8%	12.4%	13.1%	12.6%	10.5%	6.4%	1.1%	6.2%
Free cash flow yield	3.6%	5.2%	4.7%	5.7%	4.6%	6.4%	11.5%	6.9%
Earnings yield	3.3%	4.4%	5.2%	6.2%	7.0%	4.1%	1.0%	6.1%
Enterprise value	$13B	$9.1B	$7.6B	$5.9B	$4.3B	$4.2B	$3.1B	$3.2B
Net debt / EBITDA	0.58×	0.32×	0.48×	0.53×	1.5×	2.52×	2.35×	2.86×
Cash conversion cycle (days)	81	87	86	82	89	83	83	88