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Is AMETEK (AME) Fairly Valued Following Its Recent Pullback?

Simply Wall St · 2d ago

AMETEK (AME) is back in focus after recent trading saw the stock close at $231.32, with returns down 1.6% on the day and about 4% over the past month.

Over the past year AMETEK’s share price has generally trended higher. Recent weakness, including a 7 day share price return of down 4.3% and a 30 day share price return of down 4.3%, has softened what remains a positive year to date gain of 10.6%.

Compare AMETEK’s recent pullback with other industrial stocks showing stronger momentum and financial strength by scanning our hand picked list of list of solid balance sheet and fundamentals (53 results)

After a strong 1 year run and a recent slip, AMETEK now sits at $231.32 with a Value Score of 1 and an intrinsic discount of 3.8%. Does that balance of recent gains and modest discount still favour new buyers?

Most Popular Narrative: 16.6% Undervalued

AMETEK’s most followed valuation narrative points to a fair value of $277.50 compared with the last close at $231.32, framing the recent pullback as a gap between price and expectations.

EMG and Automation segments are inflecting upwards, with destocking now complete and record orders translating to accelerating organic growth and strong core margin expansion. This shift is poised to further enhance operating leverage and group EBITDA growth in coming quarters.

Read the complete narrative. Read the complete narrative.

Want to understand why this AMETEK fair value sits well above today’s price? The narrative leans on steady revenue gains, firmer margins and a richer earnings multiple. Curious which specific growth and profitability assumptions have to line up to make $277.50 add up on a 9.47% discount rate?

Result: Fair Value of $277.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, AMETEK’s narrative can still be challenged if weakness in semiconductor and research end markets persists, or if acquisition led growth fails to deliver expected returns.

Find out about the key risks to this AMETEK narrative.

Another View on AMETEK’s Valuation

The first narrative frames AMETEK as 16.6% undervalued at $231.32 based on earnings projections and an implied P/E of 40.2x. A simple P/E cross check tells a cooler story. The stock trades at 33.6x, in line with the US Electrical industry at 33.6x and below the peer average of 38.4x.

However, the fair ratio analysis suggests a P/E of 26.9x. That is a meaningful gap, which implies less room for error if earnings or margins fall short of expectations. The question for you is whether AMETEK’s track record and profile justify paying above that fair ratio today.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:AME P/E Ratio as at Sep 2026
NYSE:AME P/E Ratio as at Sep 2026

Next Steps

If this AMETEK narrative feels promising, now is the moment to test the numbers yourself and decide how comfortable you are with the assumptions and risks. To see what optimism is already reflected in the data, take a closer look at the 2 key rewards.

Looking for more investment ideas beyond AMETEK?

If you like AMETEK but want a broader watchlist, use these screeners now and avoid missing opportunities that match your preferred mix of risk, income and value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.