Applied Industrial Technologies (AIT) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Applied Industrial Technologies stock $205, price $298, that is 31.2% below the price, quality 77 out of 100. Rating: overvalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $79.24 – $361.95 · fair‑value band $137.73 – $264.12 · the $298.29 price screens above the $205.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in the United States, Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. It operates in two segments, Service Center and Engineered Solutions.
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The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well as general maintenance products; and motors, belting, drives, couplings, pumps, linear motion, hydraulic and pneumatic components, filtration supplies, hoses, and other related supplies.
It also installs, modifies, and repairs conveyor belts and rubber linings, as well as hose assemblies.
The Engineered Solutions segment is involved in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, engineered flow control products and services, and automation technologies; and provision of fluid power and industrial flow control products.
Its fluid power products and solutions are used in off-highway mobile equipment, stationary industrial equipment and machines, marine and offshore equipment, factory automation, food processing equipment, packaging operations, and downstream energy process systems.
This segment also offers pumps, valves, fittings, hoses, process instrumentation, actuators, and filtration supplies; and advanced automation technologies for the design, engineering, assembly, integration, and distribution of machine vision, collaborative robots, mobile robots, radio-frequency identification, industrial networking, motion control, and machine learning technologies for OEMs, machine builders, integrators, and other industrial and technology sectors.
The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
Stock analysis
Applied Industrial Technologies (AIT) currently trades at $298.29, while our model-based Fair Value estimate is $205.08, 31% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $206.50 per share, and 0 of the 25 models we run sit above the $298.29 price.
Bear case: the Dividend Discount group reads lowest at $28.66, and 25 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $137.73 (bear) to $264.12 (bull), the price of $298.29 sits above 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 77/100 (high quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Applied Industrial Technologies reported revenue of $5.0B in FY2026 versus $3.8B in FY2022, a compound +6.8%/yr. Reported net income was $415M in FY2026, compounding +12.6%/yr from FY2022.
Key figures
Market cap $11.3B Large · P/E ratio 26.4 · P/S ratio 2.23 · EPS (TTM) $11.29 · Dividend yield 0.7% · Net margin 8.4% · Return on equity 22.5% · Return on assets (EBIT) 16.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 64 out of 100 (medium confidence).
What moves the price
The share trades about 18% below its 52-week high and 24% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −23% fair-value upside, at −31%, AIT screens richer than that median.
Fair Value models
Bear$137.73Fair Value $205.08Bull$264.12
Price $298.29 · Downside -31.2%
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 4 months old). Earnings retained since then ($3.26 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, 3 officers or directors sold shares worth $2.6M and none bought.
SalePeter C WallaceDirector2× since Feb 26, 2026: 6,904 shares, avg. $300.31$2.1MAug 26, 2026
SaleDavid K. WellsVice President-CFO & Treasurer1,812 shares at $355.10$643,441Aug 18, 2026
SaleMadhuri A AndrewsDirector3,845 shares at $329.89$1.3MJun 18, 2026
SaleWarren E Hoffner IIIVP, General Mgr-Fluid Power3× since Feb 5, 2026: 16,000 shares, avg. $298.33$4.8MMay 5, 2026
SaleJason W VasquezVP-Sales & Marketing-USSC5,447 shares at $287.87$1.6MFeb 5, 2026
SaleNeil A SchrimsherPresident and CEO, Director19,207 shares at $285.85$5.5MFeb 4, 2026
Plus 19 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.83/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.8%
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.
+4.0%
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.
+8.9%
Start year 2021 (pandemic). Over 10 years: +7.0% 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.
+6.0%
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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. Basis: adjusted.
+17.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.2%
Dividend (yield on the price)0.7%
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.24.3% vs 14.6%, picking up
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.6% → 11%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as 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).
+11.3%
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.
+5.3%
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 +8.7% a year for the price and +2.8% 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: Applied Industrial Technologies benefits from deep technical know-how in motion, fluid power and automation as a value-added distributor with acquisitions, yet limited public evidence leaves its durable moat unconfirmed.
Main risk: Larger distributors such as Grainger with advanced e-commerce platforms, greater scale and AI-driven inventory tools could capture more customers or force price reductions on AIT's industrial distribution services.
Bull case: AIT could leverage its technical expertise in automation and fluid power plus targeted acquisitions to deepen value-added services and retain customers despite larger rivals' scale.
Bear case: If larger competitors expand their digital platforms and purchasing power further, AIT might lose market share in standard MRO products and face sustained margin pressure on its distribution business.
Applied Industrial Technologies stands out as a value-added distributor with deep technical know-how in motion, fluid power and automation, backed by more than eighteen acquisitions since 2018. Our models see the shares as overvalued even as management lifted its intermediate goals to seven billion dollars in sales and fourteen percent EBITDA margins. Will the combination of organic momentum and further deals prove strong enough to support that ambition, or will slower industrial demand cap the results?
Compare Applied Industrial Technologies with another stock
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.Industrial Distribution · 107 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score77 · Top 25%
Fair Value upside−31.2% · Bottom 25%
Profitability
Return on equity (12 months)22.5% · Top 25%
Return on assets13.8% · Top 25%
Net margin (12 months)8.4% · Top 25%
Operating margin (12 months)11.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)7.6% · Above median
Dividend yield (12 months)0.7% · Bottom 25%
Balance sheet
Debt / equity0.14× · Below median
Valuation Multiplesvs Industrial Distribution median · lower = cheaper
P/E (12 months)26.4× · Pricier than median
P/B6.07× · Priciest 25%
P/S (12 months)2.23× · Priciest 25%
Price / free cash flow24.5× · Pricier than median
EV/EBITDA18.2× · Priciest 25%
PEG2.49× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 39
FUTURE (revenue growth)38· sector 37
PAST (return on equity)90· sector 39
HEALTH (low debt)93· sector 92
DIVIDEND (yield)13· sector 38
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Applied Industrial Technologies (AIT) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $205.08 versus a price of $298.29, about 31% lower (overvalued).
What is the fair value of AIT?
Our model-based fair value for Applied Industrial Technologies is $205.08 (as of Nov 4, 2026), built from audited fundamentals. The current price: $298.29.
What is the quality score of AIT?
Applied Industrial Technologies has a Quality Score of 77/100. 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 Applied Industrial Technologies (AIT)?
Our model-based price target is the fair value of $205.08 (as of Nov 4, 2026) from 25 valuation models. Cautious scenario $137.73, optimistic scenario $264.12. It is a calculation from audited fundamentals, not an analyst target.
What is the Applied Industrial Technologies stock forecast for 2026?
Our models put fair value at $205.08, about 31% lower versus a price of $298.29 (overvalued). Cautious scenario $137.73, optimistic scenario $264.12. The calculation is refreshed regularly with new filings.
What is the revenue of Applied Industrial Technologies (AIT)?
Applied Industrial Technologies reported trailing-twelve-month revenue of about $5.1B (latest available figure, as of Nov 4, 2026).
Does Applied Industrial Technologies pay a dividend?
Applied Industrial Technologies currently shows a dividend yield of 0.67% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Applied Industrial Technologies (AIT)?
For today's price to be fair in a discounted-cash-flow model, Applied Industrial Technologies would have to grow free cash flow by +11.3 % 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 +9.0 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of AIT use?
Our models discount Applied Industrial Technologies at 8.9 %: a base by market capitalisation (large), damped by beta 0.85, 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 Applied Industrial Technologies that is +11.3 % 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 Applied Industrial Technologies (AIT) delivered so far?
Over the past 5 years revenue at Applied Industrial Technologies grew +9.0 % a year. The price currently implies +11.3 % 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 Applied Industrial Technologies (AIT) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Applied Industrial Technologies (+11.3 % 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 Applied Industrial Technologies (AIT)?
The free-cash-flow yield on the price is 4.08 %: that much free cash flow Applied Industrial Technologies 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 Applied Industrial Technologies (AIT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Applied Industrial Technologies it is $205.08 per share (as of Nov 4, 2026), against a price of $298.29. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Applied Industrial Technologies stock overvalued or undervalued in 2026?
As of Nov 4, 2026, AIT trades above its calculated fair value: price $298.29, fair value $205.08, a gap of about −31% (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 AIT?
No. The price is what the market pays today ($298.29); the fair value is what the company's own numbers justify ($205.08). For Applied Industrial Technologies the two are $93.21 per share apart. That gap is exactly why we show both numbers side by side.
How much is Applied Industrial Technologies worth?
The market values Applied Industrial Technologies at about $11.3B (market capitalisation, as of Nov 4, 2026). Per share that is $298.29; our models calculate a fair value of $205.08 per share.
What do the bullish and bearish scenarios say about AIT?
Our models span a range for Applied Industrial Technologies: cautious scenario $137.73, base $205.08, optimistic $264.12 per share (as of Nov 4, 2026, price $298.29). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AIT?
Applied Industrial Technologies trades at a price-to-earnings ratio of 26.4 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $205.08 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, 4 of the years ex one-offs: 17.9. Other multiples: PEG 2.5, P/B 6.1, P/S 2.2, EV/EBITDA 18.2.
What is the PEG ratio of AIT?
The PEG ratio of Applied Industrial Technologies is 2.49 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Applied Industrial Technologies (AIT)?
Balance-sheet figures for Applied Industrial Technologies (as of Nov 4, 2026): return on equity 22.5%, debt of 0.14 per unit of equity. They feed the Quality Score of 77/100, which measures business quality independently of the share price.
How far is AIT from its 52-week high?
Applied Industrial Technologies trades at $298.29, about 18% below its 52-week high of $361.95 and 24% above the low of $239.80 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $205.08 is for.
Which stocks are comparable to Applied Industrial Technologies?
From the same area (Industrials) we also value W.W. Grainger, Inc, Fastenal Company, Ferguson Enterprises Inc, WESCO International, Inc, 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 Applied Industrial Technologies stock attractive at the current price?
The data as of Nov 4, 2026: price $298.29, calculated fair value $205.08 (−31%), Quality Score 77/100, from 25 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 AIT calculated?
We run Applied Industrial Technologies through 25 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 $205.08, 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 15.6% above its aggregate fair value. Applied Industrial Technologies 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 Applied Industrial Technologies (AIT)?
The closing price on Nov 4, 2026 was $298.29. Our model-based fair value is $205.08, about 31% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Applied Industrial Technologies right now?
A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($264.12). The favourable scenario is already priced in. A fairly wide model range ($137.73 to $264.12) leaves room in how you read the outcome.
Where does the earnings growth of Applied Industrial Technologies (AIT) come from?
Earnings per share at Applied Industrial Technologies grew +18.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +7.0 %, EBIT margin +7.6 %, tax rate +1.8 %, residual (interest, one-offs) +0.7 %. 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 Applied Industrial Technologies
How large is the market capitalisation of Applied Industrial Technologies (AIT)?
The market capitalisation of Applied Industrial Technologies is $11.3B. 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 Applied Industrial Technologies (AIT)?
The price-to-sales ratio of Applied Industrial Technologies is 2.23 (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 Applied Industrial Technologies (AIT)?
Earnings per share at Applied Industrial Technologies are $11.29 (price ÷ EPS = P/E 26.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Applied Industrial Technologies (AIT)?
The dividend yield of Applied Industrial Technologies is 0.7% (payout 17.6%). 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 Applied Industrial Technologies (AIT)?
The net margin of Applied Industrial Technologies is 8.4% (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 Applied Industrial Technologies (AIT)?
The return on equity (ROE) of Applied Industrial Technologies is 22.5% (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 Applied Industrial Technologies (AIT)?
On an EBIT basis the return on assets of Applied Industrial Technologies is 16.5% (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 Applied Industrial Technologies (AIT)?
The operating margin of Applied Industrial Technologies is 11.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Applied Industrial Technologies (AIT)?
Revenue at Applied Industrial Technologies is growing +7.6% versus a year earlier (3y avg +4.0%). 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 Applied Industrial Technologies (AIT)?
Earnings per share at Applied Industrial Technologies are growing +12.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Applied Industrial Technologies (AIT) carry?
The net debt of Applied Industrial Technologies is $356M (fiscal year 2026, ≈ 0.8 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 4, 2026