EN DE

The Toro Company (TTC) Fair Value & Analysis

Industrials · US · Market cap $9.0B

TT The Toro Company logo The Toro Company TTC · US
Price$98.23
Fair Value$69.71
Upside-29.0%
Quality74/100
Watch The Toro Company for free, get notified when fair value or trend changes. Watch for free
Mixed Growth
Thin margins · 7.3% net margin
Moderate debt · generates free cash flow
1.61% dividend yield
Mixed vs. peers (7/15)
Moderate moat 63/100
Evidence: High Range $52.28 – $87.13 Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from $68.48 to $69.71 (+1.8%) since Jun 24, 2026. Share price +3.8% over the past month.

A solid business, but screening 29% overvalued on our models.

What matters now

  • A high-quality business (quality 74/100), 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 ($87.13). The favourable scenario is already priced in.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

$109.38 $61.99 Fair Value $69.71 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $61.99 – $109.38 · fair‑value band $52.28 – $87.13 · the $98.23 price screens above the $69.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

The Toro Company (TTC) currently trades at $98.23, while our model-based Fair Value estimate is $69.71, implying the stock looks roughly 29.0% overvalued today. We read business quality at 74/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, The Toro Company generated revenue of $4.7B at a net margin of 7.3%. Revenue grew 8.1% year over year. It earns a return on equity of 23.9%. Net debt stands at $681M. Fundamentals as of Jul 19, 2026

Our scenario range runs from $52.28 (bear case) to $87.13 (bull case); at $98.23, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 6% below its 52-week high and 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -37% fair-value upside, at -29%, TTC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $58.90 $86.14 $122.76 80
Residual Income $20.84 $27.75 $114.53 76
Rev-Margin DCF $45.42 $71.75 $101.33 74
All 24 models by family
DCF Models
FCF DCF $57.69 $88.05 $131.18 38
Owner Earnings $35.30 $55.00 $82.99 31
5Y Revenue Exit $45.42 $71.13 $103.03 39
5Y EBITDA Exit $53.57 $86.06 $122.93 41
5Y P/E Exit $45.15 $70.64 $96.51 38
10Y Revenue Exit $48.14 $72.05 $102.40 36
10Y EBITDA Exit $54.52 $82.06 $116.95 37
10Y P/E Exit $49.31 $71.72 $97.63 35
Earnings-Based
Graham-Dodd $22.57 $62.77 $82.49 54
Lynch FV $12.59 $17.99 $23.39 50
PEG = 1.0 $12.59 $17.99 $23.39 46
EPV $34.91 $41.38 $46.96 59
Multiples
P/E Multiple $49.79 $66.39 $82.98 63
P/S Multiple $42.32 $56.43 $70.54 58
P/B Multiple $34.34 $45.78 $57.23 55
EV/EBIT $63.51 $86.71 $109.91 53
EV/EBITDA $58.81 $80.44 $102.07 54
EV/Revenue $40.82 $60.93 $81.04 43
Asset-Based
NCAV (Graham) $7.63 $10.22 $15.26 50
Growth DCF
Growth DCF $58.90 $86.14 $122.76 80
Rev-Margin DCF $45.42 $71.75 $101.33 74
Economic Profit
Residual Income $20.84 $27.75 $114.53 76
ROIC Compounder $37.19 $47.29 $58.49 72
Growth Earnings
Growth-Adj P/E $39.83 $56.91 $73.98 68

Widest divergence: Growth DCF ($71.75) versus Asset-Based ($10.22). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $4.7B
Revenue growth (YoY) +8.1%
Net margin 7.3%
Return on equity 23.9%
Free cash flow $578M FY2025
P/E ratio 27.2
More key figures
Operating margin 14.5%
EPS (TTM) $3.47
Dividend yield 1.6%
EPS growth (YoY) +9.5%
Net debt $681M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 72 · Market factors (momentum, volatility) 70

Profitability 71
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

The Toro Company provides professional turf maintenance equipment and services. It operates through Professional and Residential segments.

Full company description

The Toro Company provides professional turf maintenance equipment and services. It operates through Professional and Residential segments. It offers riding and walking mowers, greens rollers, all-wheel drive articulating tractors, turf sprayer, utility vehicles, aeration, bunker maintenance, and other turf equipment; sprinkler heads, controllers, turf sensors, valves, and operating software; and riding rotary and reel mowers and attachments, infield grooming equipment, multipurpose vehicles, debris management products, all-wheel drive articulating tractors, sidewalk snow and ice solution vehicles, and related attachments and accessories. The company also provides zero-turn radius riding mowers, walk behind and stand-on mowers, turf application and renovation, tree care, horizontal directional drills, and drilling guidance and support equipment; walk and ride trenchers, vacuum excavators, utility locators and inspection systems, pipe rehabilitation, and replacement solutions; drive chucks and sub savers, drill pipe, starter rods and quick connects, bits and blades, rock tools, reamers, and swivels; and snow removal and ice management solutions. In addition, it offers rotors, sprinkler bodies and nozzles, valves, drip tubing and subsurface irrigation, and electric control devices; wired and wireless rain, freeze, climate, and soil sensors; drip tape, polyethylene tubing, drip line, emitters, filters, fitting, and software related solutions; stand-on skid steers, walk-behind trenchers, stump grinders, material handlers, and other concrete construction equipment; walk power and zero-turn riding mowers, and snow throwers; and grass and hedge trimmers, blower-vacuums, chainsaws, edgers, cultivators, string mowers, and related parts and accessories. The company sells its products through distributors, dealers, mass retailers, hardware retailers, equipment rental and home centers, and online. The company was founded in 1914 and is headquartered in Bloomington, Minnesota.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The Toro Company reported revenue of $4.5B in FY2025 versus $4.0B in FY2021, a compound +3.3%/yr. Reported net income was $316M in FY2025, compounding −6.3%/yr from FY2021.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$4.5B
Latest YoY
−1.6%
Avg. growth/yr (3Y)
+0.0%
Avg. growth/yr (5Y)
+5.9%
Avg. growth/yr (39Y)
+6.4%
Revenue +3.3%/yr
FY21 $4.0B
FY22 $4.5B
FY23 $4.6B
FY24 $4.6B
FY25 $4.5B
Net income −6.3%/yr
FY21 $410M
FY22 $443M
FY23 $330M
FY24 $419M
FY25 $316M

TTC screens 29% overvalued. Compare with Techtronic Industries Company →

Share or link this analysis
For bloggers & editors: embed code + live data

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.

Cite: Fair Value Calculator (2026). "The Toro Company Fair Value". https://www.fairvalue-calculator.com/stock/TTC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Tools & Accessories · 119 stocks

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.

Quality Score 74 · Top 25%
Fair Value upside −29% · Below median
Return on equity (TTM) 24% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.63× · Higher than 75% of peers

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 27.2× · Pricier than median
P/B 6.19× · Pricier than 75% of peers
P/S (TTM) 1.93× · Pricier than median
P/FCF 15.5× · Pricier than 75% of peers
EV/EBITDA 14.2× · Pricier than median
PEG 1.46× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 7
FUTURE 41 · sector 14
PAST 96 · sector 28
HEALTH 68 · sector 96
DIVIDEND 32 · sector 36

VALUE 0: the price sits above our fair-value range.

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$129.60 HK$81.05 -37%
Snap-on Incorporated SNA $410.99 $350.46 -15%
RBC Bearings Incorporated RBC $595.49 $184.29 -69%
Lincoln Electric Holdings LECO $252.58 $154.80 -39%
Stanley Black & Decker, Inc SWK $88.22 $54.24 -39%
AB SKF (publ) SKFB kr 258.90 kr 192.57 -26%
The Timken Company TKR $139.47 $66.33 -52%
SFS Group SFSN CHF 140.00 CHF 118.30 -16%
Hangzhou Greatstar Industrial Co 002444 ¥29.33 ¥35.72 +22%
Shareate Tools Ltd 688257 ¥82.32 ¥14.01 -83%

Compare The Toro Company with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is The Toro Company (TTC) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $69.71 versus a price of $98.23, about −29% (overvalued).
What is the fair value of TTC?
Our model-based fair value for The Toro Company is $69.71 (as of Jul 19, 2026), built from audited fundamentals. The current price is $98.23.
What is the quality score of TTC?
The Toro Company has a Quality Score of 74/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of The Toro Company (TTC)?
The Toro Company reported trailing-twelve-month revenue of about $4.7B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of TTC?
The net profit margin of The Toro Company is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does The Toro Company pay a dividend?
The Toro Company currently shows a dividend yield of about 1.69% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track The Toro Company and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.