Applied Industrial Technologies Inc (AIT) is overvalued and Ferguson Enterprises Inc (FERG) is fairly valued.
Against our estimates of intrinsic value, FERG trades at the wider discount: a margin of safety of +3%, 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 10.2% (average of 3 methods) values the shares at $228.71; the price of $221.17 is 3% below that value, and 72% of that value comes from beyond year five.
Leak Score 49/100 on 5 of 12 signals
| Metric | AIT | FERG |
|---|---|---|
| Verdict | Overvalued | Fairly valued |
| Price | $329.79 | $221.17 |
| Intrinsic value | $216.68 | $228.71 |
| Margin of safety | -52% | +3% |
| Leak Score | 59/100 (3/12) | 49/100 (5/12) |
| Market cap | $12.1B | $42.8B |
| Revenue growth, 5 years | 8.9% | 6.2% |
| Operating margin | 11.7% | 9.6% |
| Net margin | 8.3% | 6.8% |
| Return on equity | 22.4% | 37.5% |
| Debt to equity | 0.26 | 1.11 |
| P/E | 30.1x | 19.8x |
| Forward P/E | 24.9x | 17.6x |
| P/B | 6.5x | 6.9x |
| Dividend yield | 0.6% | 1.5% |