Applied Industrial Technologies Inc (AIT) is overvalued and QXO Inc (QXO) is fairly valued.
Against our estimates of intrinsic value, QXO 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
A 1.8x revenue multiple, discounted for its losses, values the shares at $13.14; the price of $12.78 is 3% below that value.
Leak Score 0/100 on 2 of 12 signals
| Metric | AIT | QXO |
|---|---|---|
| Verdict | Overvalued | Fairly valued |
| Price | $329.79 | $12.78 |
| Intrinsic value | $216.68 | $13.14 |
| Margin of safety | -52% | +3% |
| Leak Score | 59/100 (3/12) | 0/100 (2/12) |
| Market cap | $12.1B | $13.3B |
| Revenue growth, 5 years | 8.9% | 178.0% |
| Operating margin | 11.7% | -1.4% |
| Net margin | 8.3% | -6.6% |
| Return on equity | 22.4% | -4.6% |
| Debt to equity | 0.26 | 0.57 |
| P/E | 30.1x | — |
| Forward P/E | 24.9x | 19.7x |
| P/B | 6.5x | 1.0x |
| Dividend yield | 0.6% | 1.9% |