AMETEK, Inc. AME
AMETEK delivered record Q2 2026 results with double-digit organic sales growth, margin expansion, and raised full-year guidance, reinforcing the durable quality franchise that grew FY2025 revenue to $7.40B with a 26.15% operating margin and $1.67B in free cash flow. However, at a PE of 36.39 — an 8.66% premium to the peer median of 33.49 — and a price-to-sales of 7.29 versus a peer median of 3.29, the valuation already discounts much of that execution.
Smart money sentiment improved to 0.0862 as of the quarter ended 2026-06-30 and RSI has cooled to 54.77, but insiders remain net sellers over the trailing 24 months (-185,831 shares, -$24.3M), keeping the risk/reward balanced rather than compelling at $249.99.
What could go wrong
- Valuation stretch. PE of 36.39 sits 8.66% above the peer median of 33.49, and price-to-sales of 7.29 is 121% above the peer median of 3.29, leaving little room for any execution misstep.
- Insider distribution. Over the trailing 24 months insiders net sold 185,831 shares for -$24.3M in net value, including option exercises and same-day sales by segment presidents.
- Cyclical demand exposure. EIG serves oil and gas, petrochemical, and semiconductor markets that are cyclical; any demand softening could pressure the double-digit organic growth trajectory highlighted in Q2 2026 results.
- DCF gap. A GuruFocus DCF analysis published August 5, 2026 estimated intrinsic value at $152 versus a then-price of $254, suggesting significant downside if growth assumptions moderate.
What would change my mind
Where this comes from: FMP fundamentals FY2025 + derived_metrics · MarketBeat news, 2026-08-04 · peer_relative · smart_money. Orin's read on AME; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All AME filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $3.6B | 0.1% of fund |
| State Street | $2.5B | 0.1% of fund |
| Vanguard Portfolio Management | $2.4B | 0.1% of fund |
| Price T Rowe Associates /Md/ | $1.6B | 0.2% of fund |
| Geode Capital Management | $1.5B | 0.1% of fund |
| Norges Bank | $1.0B | 0.1% of fund |
100 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 138 Form 4 filings, net −$24.3M. Of the 50 on hand, 1 was an open-market purchase and 2 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about AME
Orin answers questions about AME from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 36.1× | 30.3× | 44.5× |
| EV/EBITDA | 24.2× | 20.2× | — |
| P/S | 7.22× | 6.01× | — |
| P/B | 5.0× | 4.4× | — |
Its P/E sits above all 5 of the last 5 years (+2.38σ from its own mean).
14.9%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$271
$230 – $316 · +8% against today's price
- 20 buy or overweight
- 10 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| AMEAMETEK, Inc. | $57B | 36.1× | 24.2× | 36.6% | 20.0% | 15% |
| CARRCarrier Global Corporation | $45B | 37.8× | 20.5× | 24.3% | 5.5% | 9% |
| FASTFastenal Company | $58B | 43.0× | 29.9× | 44.7% | 15.5% | 34% |
| GWWW.W. Grainger, Inc. | $60B | 32.6× | 21.2× | 39.4% | 9.9% | 49% |
| OTISOtis Worldwide Corporation | $25B | 17.1× | 13.8× | 30.2% | 10.2% | -27% |
| ROKRockwell Automation, Inc. | $48B | 40.5× | 28.9× | 54.5% | 13.4% | 33% |
| ROPRoper Technologies, Inc. | $37B | 15.1× | 10.6× | 69.5% | 30.2% | 13% |
| XYLXylem Inc. | $24B | 24.4× | 13.8× | 39.2% | 11.1% | 9% |
The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 10.6% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $180 | $222.73 · −19% | 2026-06-10 |
| Levered DCF | $192 | $222.73 · −14% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.