Donaldson Company, Inc. (DCI) 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

-18.4%

$70.08

vs $85.83 price

Levered DCF

$63.45

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.37

Safe zone

Rating

B+

Overall 3 / 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	24.04×	23.29×	21.81×	21.3×	20.43×	29.16×	23.81×	24.01×
P/B	6.19×	5.88×	6.06×	5.79×	6×	7.36×	6.18×	7.18×
P/S	2.81×	2.31×	2.52×	2.23×	2.06×	2.93×	2.38×	2.25×
EV / EBITDA	16.55×	14.66×	14.34×	14.1×	13.34×	17.72×	14.99×	14.42×
Gross margin	34.6%	34.8%	35.5%	33.8%	32.3%	34.0%	33.8%	33.3%
Operating margin	15.4%	15.1%	15.2%	14.0%	13.4%	13.5%	13.2%	13.6%
Net margin	11.7%	9.9%	11.5%	10.5%	10.1%	10.1%	10.0%	9.4%
Current ratio	2.08×	1.93×	1.84×	1.7×	2.23×	2.05×	2.7×	2.32×
Debt / equity	0.78×	0.46×	0.4×	0.54×	0.61×	0.46×	0.71×	0.71×
Interest coverage	16.66×	23.03×	25.43×	25.01×	29.77×	29.59×	19.55×	19.51×
Dividend yield	1.3%	1.5%	1.4%	1.5%	1.6%	1.3%	1.7%	1.6%
Payout ratio	31.1%	35.9%	29.7%	31.9%	33.1%	37.4%	41.4%	37.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	25.7%	25.2%	27.8%	27.2%	29.4%	25.2%	25.9%	29.9%
Return on invested capital	14.3%	18.4%	19.1%	16.8%	16.9%	15.6%	13.9%	16.1%
Return on assets	11.4%	12.3%	14.2%	13.0%	12.8%	12.0%	11.4%	12.5%
Free cash flow yield	3.9%	4.0%	4.5%	5.6%	2.5%	4.1%	4.3%	3.0%
Earnings yield	4.2%	4.3%	4.6%	4.7%	4.9%	3.4%	4.2%	4.2%
Enterprise value	$12B	$9B	$9.4B	$8.2B	$7.3B	$8.7B	$6.6B	$6.9B
Net debt / EBITDA	1.56×	0.79×	0.56×	0.91×	0.91×	0.62×	1.05×	0.96×
Cash conversion cycle (days)	94	87	79	82	95	88	93	86