Donaldson Company Inc (DCI) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Donaldson Company Inc stock $68.73, price $83.27, that is 17.5% below the price, quality 68 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Our calculation puts a fair price 17% below what the stock costs today.
Quality 68/100
Healthy Growth(revenue 5y +6.4 %/yr in USD)
Solidly profitable · 11.7% net margin (TTM)
Low debt
Generates free cash flow
1.5% dividend yield · Well covered
Ranks above peers(11/15)
Upbeat coverage
Broad data
28% return on equity.
Wide moat71/100 · thin data
Insiders sold $3.2M (6M)
Fair value $68.73 · Overvalued (−17.5%)
Risks from the AI analysis
🚩Electrification could cut engine filter demand🚩Parker Hannifin and Cummins could pressure prices🚩Facet acquisition could raise leverage and interest costs
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $43.54 – $109.86 · fair‑value band $43.64 – $89.76 · the $83.27 price screens above the $68.73 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through Mobile Solutions, Industrial Solutions, and Life Sciences segments.
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The Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems, fuel, lube and hydraulic systems, emissions systems and sensors, indicators, and monitoring systems.
This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, and transportation markets; and to independent distributors, and OEM dealer networks.
The Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; air inlet systems and filtration for power generation; ancillary components; replacement parts; performance monitoring and service; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes and connected services.
It also sells aerospace and defense products comprising of air, fuel, lubrication and hydraulic filtration for fixed-wing and rotorcraft aerospace applications and ground defense vehicle and naval platforms. This segment sells its products to various distributors, OEMs, and end-users.
The Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users.
The company was founded in 1915 and is headquartered in Bloomington, Minnesota.
Stock analysis
Donaldson Company Inc (DCI) currently trades at $83.27, while our model-based Fair Value estimate is $68.73, 17% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $70.40 per share, and 0 of the 26 models we run sit above the $83.27 price.
Bear case: the Dividend Discount group reads lowest at $17.85, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $43.64 (bear) to $89.76 (bull), the price of $83.27 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Donaldson Company Inc reported revenue of $3.9B in FY2026 versus $3.3B in FY2022, a compound +4.1%/yr. Reported net income was $454M in FY2026, compounding +8.1%/yr from FY2022.
Key figures
Market cap $9.8B Mid · P/E ratio 21.4 · P/S ratio 2.53 · EPS (TTM) $3.90 · Dividend yield 1.5% · Net margin 11.7% · Return on equity 28.2% · Return on assets (EBIT) 17.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 71 out of 100 (low confidence).
What moves the price
The share trades about 24% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −17%, DCI screens cheaper than that median.
Fair Value models
Bear$43.64Fair Value $68.73Bull$89.76
Price $83.27 · Downside -17.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 3 months old). Earnings retained since then ($0.7142 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $3.2M and none bought.
SaleTod E. CarpenterChairman, President and CEO, Director2× since Aug 31, 2026: 35,000 shares, avg. $91.09$3.2MSep 4, 2026
SaleJames OwensDirector19,800 shares at $89.15$1.8MApr 14, 2026
SaleGuillermo BrisenoPresident20,600 shares at $84.97$1.8MMar 26, 2026
SaleBradley J. PogalzChief Financial Officer566 shares at $91.57$51,829Dec 9, 2025
SaleAjita G RajendraDirector19,800 shares at $92.04$1.8MDec 5, 2025
Plus 15 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+5.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.4%
Start year 2021 (pandemic). Over 10 years: +5.8% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+13.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.5%
Dividend (yield on the price)1.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.5% vs 9.9%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.14% → 15%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+10.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +8.2% a year for the price and +2.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The business benefits from growing recurring aftermarket filtration revenue and added aerospace exposure via acquisitions, yet lacks sufficient public evidence to confirm a durable competitive moat beyond moderate profitability.
Main risk: A long-term shift to electric vehicles and batteries might reduce demand for traditional engine air and fuel filters in the mobile solutions segment, hitting recurring aftermarket sales.
Bull case: By expanding high-retention aerospace and defense aftermarket revenue through Facet and investing in new filtration technologies for data centers and life sciences, Donaldson could offset any gradual decline in traditional mobile filtration demand.
Bear case: If electrification accelerates faster than expected and rivals capture share with lower-priced alternatives, the company might see slower growth in its core mobile segment and sustained margin pressure from higher debt servicing costs.
Donaldson has grown its recurring aftermarket revenue from filtration products to around two thirds of sales through proprietary solutions and an installed base. The recent Facet acquisition adds exposure to aerospace, defense and power generation end markets with high aftermarket content. Our models see the stock as overvalued, but will the shift toward these more durable segments and margin expansion outweigh cyclical pressures in mobile solutions, or will growth fall short of expectations?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 808 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside−17.5% · Above median
Profitability
Return on equity (12 months)28.2% · Top 25%
Return on assets11.4% · Top 25%
Net margin (12 months)11.7% · Top 25%
Operating margin (12 months)17.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)8.0% · Above median
Dividend yield (12 months)1.5% · Above median
Balance sheet
Debt / equity0.36× · Highest 25%
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)21.4× · Cheaper than median
P/B5.56× · Priciest 25%
P/S (12 months)2.53× · Pricier than median
Price / free cash flow (fiscal year)23.0× · Cheaper than median
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Cite: Fair Value Calculator (2026). "Donaldson Company Inc Fair Value". https://www.fairvalue-calculator.com/stock/DCI
Frequently asked questions
Is Donaldson Company Inc (DCI) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $68.73 versus a price of $83.27, about 17% lower (overvalued).
What is the fair value of DCI?
Our model-based fair value for Donaldson Company Inc is $68.73 (as of Nov 6, 2026), built from audited fundamentals. The current price: $83.27.
What is the quality score of DCI?
Donaldson Company Inc has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Donaldson Company Inc (DCI)?
Our model-based price target is the fair value of $68.73 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $43.64, optimistic scenario $89.76. It is a calculation from audited fundamentals, not an analyst target.
What is the Donaldson Company Inc stock forecast for 2026?
Our models put fair value at $68.73, about 17% lower versus a price of $83.27 (overvalued). Cautious scenario $43.64, optimistic scenario $89.76. The calculation is refreshed regularly with new filings.
What is the revenue of Donaldson Company Inc (DCI)?
Donaldson Company Inc reported trailing-twelve-month revenue of about $3.9B (latest available figure, as of Nov 6, 2026).
Does Donaldson Company Inc pay a dividend?
Donaldson Company Inc currently shows a dividend yield of 1.49% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Donaldson Company Inc (DCI)?
For today's price to be fair in a discounted-cash-flow model, Donaldson Company Inc would have to grow free cash flow by +10.8 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.4 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of DCI use?
Our models discount Donaldson Company Inc at 8.9 %: a base by market capitalisation (large), damped by beta 0.87, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Donaldson Company Inc that is +10.8 % per year a year over ten years, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has Donaldson Company Inc (DCI) delivered so far?
Over the past 5 years revenue at Donaldson Company Inc grew +6.4 % a year. The price currently implies +10.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Donaldson Company Inc (DCI) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Donaldson Company Inc (+10.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Donaldson Company Inc (DCI)?
The free-cash-flow yield on the price is 4.34 %: that much free cash flow Donaldson Company Inc produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Donaldson Company Inc (DCI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Donaldson Company Inc it is $68.73 per share (as of Nov 6, 2026), against a price of $83.27. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Donaldson Company Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, DCI trades above its calculated fair value: price $83.27, fair value $68.73, a gap of about −17% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DCI?
No. The price is what the market pays today ($83.27); the fair value is what the company's own numbers justify ($68.73). For Donaldson Company Inc the two are $14.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Donaldson Company Inc worth?
The market values Donaldson Company Inc at about $9.8B (market capitalisation, as of Nov 6, 2026). Per share that is $83.27; our models calculate a fair value of $68.73 per share.
What do the bullish and bearish scenarios say about DCI?
Our models span a range for Donaldson Company Inc: cautious scenario $43.64, base $68.73, optimistic $89.76 per share (as of Nov 6, 2026, price $83.27). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DCI?
Donaldson Company Inc trades at a price-to-earnings ratio of 21.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $68.73 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2023, FY2025 ex one-offs: 24.2. Other multiples: PEG 1.6, P/B 5.6, P/S 2.5, EV/EBITDA 14.3.
What is the PEG ratio of DCI?
The PEG ratio of Donaldson Company Inc is 1.59 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Donaldson Company Inc (DCI)?
Balance-sheet figures for Donaldson Company Inc (as of Nov 6, 2026): return on equity 28.2%, debt of 0.36 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is DCI from its 52-week high?
Donaldson Company Inc trades at $83.27, about 24% below its 52-week high of $109.86 and 2% above the low of $81.25 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $68.73 is for.
Which stocks are comparable to Donaldson Company Inc?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Donaldson Company Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $83.27, calculated fair value $68.73 (−17%), Quality Score 68/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DCI calculated?
We run Donaldson Company Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $68.73, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Donaldson Company Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Donaldson Company Inc (DCI)?
The closing price on Nov 5, 2026 was $83.27. Our model-based fair value is $68.73, about 17% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Donaldson Company Inc right now?
Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($43.64 to $89.76) leaves room in how you read the outcome.
Where does the earnings growth of Donaldson Company Inc (DCI) come from?
Earnings per share at Donaldson Company Inc grew +9.2 % a year from 2015 to 2026. Broken into its drivers: revenue per share +6.8 %, EBIT margin +2.0 %, tax rate +0.6 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Donaldson Company Inc
How large is the market capitalisation of Donaldson Company Inc (DCI)?
The market capitalisation of Donaldson Company Inc is $9.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Donaldson Company Inc (DCI)?
The price-to-sales ratio of Donaldson Company Inc is 2.53 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Donaldson Company Inc (DCI)?
Earnings per share at Donaldson Company Inc are $3.90 (price ÷ EPS = P/E 21.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Donaldson Company Inc (DCI)?
The dividend yield of Donaldson Company Inc is 1.5% (payout 31.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Donaldson Company Inc (DCI)?
The net margin of Donaldson Company Inc is 11.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Donaldson Company Inc (DCI)?
The return on equity (ROE) of Donaldson Company Inc is 28.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Donaldson Company Inc (DCI)?
On an EBIT basis the return on assets of Donaldson Company Inc is 17.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Donaldson Company Inc (DCI)?
The operating margin of Donaldson Company Inc is 17.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Donaldson Company Inc (DCI)?
Revenue at Donaldson Company Inc is growing +8.0% versus a year earlier (3y avg +4.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Donaldson Company Inc (DCI)?
Earnings per share at Donaldson Company Inc are growing +14.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Donaldson Company Inc (DCI) carry?
The net debt of Donaldson Company Inc is $1.1B (fiscal year 2026, ≈ 2.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026