Applied Industrial Technologies Inc (AIT) is overvalued and Core & Main Inc (CNM) is undervalued.
Against our estimates of intrinsic value, CNM trades at the wider discount: a margin of safety of +26%, against -52% for AIT.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $216.68; the price of $329.79 is 52% above that value, and 75% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $58.43; the price of $43.01 is 26% below that value, and 78% of that value comes from beyond year five.
Leak Score 84/100 on 3 of 12 signals
| Metric | AIT | CNM |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $329.79 | $43.01 |
| Intrinsic value | $216.68 | $58.43 |
| Margin of safety | -52% | +26% |
| Leak Score | 59/100 (3/12) | 84/100 (3/12) |
| Market cap | $12.1B | $8.2B |
| Revenue growth, 5 years | 8.9% | 16.0% |
| Operating margin | 11.7% | 9.7% |
| Net margin | 8.3% | 6.0% |
| Return on equity | 22.4% | 23.4% |
| Debt to equity | 0.26 | 1.35 |
| P/E | 30.1x | 17.8x |
| Forward P/E | 24.9x | 12.6x |
| P/B | 6.5x | 3.9x |
| Dividend yield | 0.6% | — |