Timken Co (TKR) is overvalued and Toro Co (TTC) is overvalued.
Both trade above our estimate of their intrinsic value. TKR is the closer of the two: -24%, against -35% for TTC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $93.09; the price of $115.52 is 24% above that value, and 74% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $69.82; the price of $94.52 is 35% above that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | TKR | TTC |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $115.52 | $94.52 |
| Intrinsic value | $93.09 | $69.82 |
| Margin of safety | -24% | -35% |
| Leak Score | 14/100 (3/12) | 59/100 (3/12) |
| Market cap | $8.0B | $8.9B |
| Revenue growth, 5 years | 5.5% | 6.0% |
| Operating margin | 15.0% | 11.3% |
| Net margin | 5.4% | 7.6% |
| Return on equity | 8.2% | 26.5% |
| Debt to equity | 0.69 | 0.81 |
| P/E | 31.3x | 25.3x |
| Forward P/E | 15.8x | 18.4x |
| P/B | 2.5x | 6.7x |
| Dividend yield | 1.2% | 1.7% |