A.O. Smith Corporation DCF Stock Analysis. Buy or Sell?

A.O. Smithson DCF Stock Analysis.

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A.O. Smith Corporation’s Sporting Goods DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.89%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 4.17%

Earnings growth in the last 10 years (CAGR): 6.55%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 2.23%

Future Assumptions

End of Year FCF growth: 2%

Growth until end of 2026: 3%

Growth until end of 2034: 3%

Perpetual growth: 2%

Net Debt: 0.155B

Outstanding Stock Options Present Value Assumption: $0.025B

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.039B

Stock Valuation based on these assumptions: $64

Last update 09/21/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in A.O Smith Corporation (AOS) and I don’t plan to add a position in the coming days.