What is Smith A O Corp worth?
With the base-case assumptions below, a discounted cash flow model on Smith A O Corp's reported free cash flow gives $72.12 per share. The share price was $63.85 on November 10, 2026, 11% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 1.0% | 10.0% | $43.25 | -32% |
| Base | 6.0% | 9.0% | $72.12 | +13% |
| Bull | 11.0% | 8.0% | $126.03 | +97% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $92.91 | $99.26 | $107.01 | $116.71 | $129.17 |
| 8.0% | $77.40 | $81.52 | $86.38 | $92.21 | $99.35 |
| 9.0% | $66.06 | $68.88 | $72.12 | $75.91 | $80.39 |
| 10.0% | $57.43 | $59.43 | $61.69 | $64.29 | $67.28 |
| 11.0% | $50.63 | $52.10 | $53.74 | $55.59 | $57.68 |
Where the presets come from
Base: years 1 to 5 grow at Smith A O Corp's revenue growth rate over the last 5 fiscal years (5.8% 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