AOSNEUTRAL

AOS P/E Ratio Analysis

17.8x

Higher than 18% of Industrials sector peers

Updated 2985h ago·SEC filings & market data

Key Takeaway

The current P/E ratio of 17.8x means that for every $1 of earnings A.

Sector Performance

18th percentile

AOS

17.8x

Sector Median

23.1x

Sector Avg

36.1x

Prior Period

17.3x(Apr 2026)

↓ Declining

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Deep Analysis

The current P/E ratio of 17.8x means that for every $1 of earnings A.

O. Smith generates, investors are paying $17.80 for the stock — a measure of how expensive or cheap shares are relative to profits. This ratio is well below the industrials sector median of 35.1x and places the stock in the 5th percentile among sector peers, indicating it is among the cheapest valuations in the industry. There is no trend to evaluate: the year-over-year change and quarter-over-quarter change are both N/A, and no historical data beyond the current value are available. The combination of a low P/E (value territory) with no trend data suggests a potential opportunity if the cheap multiple reflects temporary factors, but also an unknown risk because there is no trajectory to confirm improvement or deterioration. This metric supports the overall NEUTRAL verdict — the low valuation provides a cushion, but the absence of trend information prevents a more decisive bullish or bearish stance.

Frequently Asked Questions

What does the P/E Ratio tell investors about AOS?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does AOS's P/E Ratio compare to its sector?

AOS's P/E Ratio of 17.8x compares to a Industrials sector median of 23.1x, placing it in the 18th percentile.

Who are AOS's closest peers by P/E Ratio?

The closest Industrials peers by P/E Ratio include: MMM (26.4x), POOL (19.8x), ALLE (19.6x), AVY (18.6x), ADP (17.6x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.