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DCF valuation

What is Applied Industrial Technologies Inc worth?

With the base-case assumptions below, a discounted cash flow model on Applied Industrial Technologies Inc's reported free cash flow gives $280.08 per share. The share price was $333.39 on September 25, 2026, 19% above that value.

Inputs from the filings

Free cash flow, fiscal 2026
$460.5M
Average free cash flow, last 5 years
$351.8M
Cash
$127.1M
balance sheet of June 30, 2026
Debt
$262.3M
balance sheet of June 30, 2026
Diluted shares, fiscal 2026
37,857,000
Revenue growth per year, last 5 years
8.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear4.0%3.0%2.0%10.0%$170.22-49%
Base9.0%6.0%2.5%9.0%$280.08-16%
Bull14.0%8.5%3.0%8.0%$485.04+45%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$360.60$385.37$415.65$453.50$502.15
8.0%$300.37$316.43$335.42$358.20$386.04
9.0%$256.42$267.40$280.08$294.86$312.34
10.0%$223.00$230.81$239.66$249.78$261.45
11.0%$196.76$202.49$208.89$216.09$224.24

Where the presets come from

Base: years 1 to 5 grow at Applied Industrial Technologies Inc's revenue growth rate over the last 5 fiscal years (8.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Applied Industrial Technologies Inc company page