AME
Ametek
Hybrid Industrial
★ Quality 38/100Price today
$238.75
what the market pays
Worth
$81.59
calculated cycle value
Price is 193% above its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Manufacturing + technology
$89.48
per share
How it's calculated
Ametek: niche electronic instrumentation that grows by buying small companies and raising their margins (an acquisition compounder). Revenue $7.4B, gross margin 36%, FCF $1.7B, growth ~7%. The model uses a conservative multiple on current cash flow; the market pays well above that for the acquisition machine.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Hybrid Industrial · vs 28 peers
You pay 34.1x times this business's cash flow; its sector median is 35x.
64% above what Charlie thinks it's worth (12.4x) — you're overpaying, sector or no sector.
Why Overvalued?
Its free cash flow is $7.23/share × 12.4x multiplier minus $7.89 in negative net cash = $81.59 in intrinsic value. Today's price of $238.75 is 66% above the calculated value — the market is paying a premium over what the model sees as fair.
The price is 193% above the calculated value. You're paying more than it's worth.
Buying here lowers your expected return and wipes out the safety margin.
The next reasonable entry zone starts at $77.51.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$65.27
-20% off Value
🟡 Discounted
≤$77.51
-5% off Value
🔴 Today
$238.75
-66% Valor
Overvalued
The market prices it too high versus what the business makes. Patience pays off here.
“Time is the friend of the wonderful company, the enemy of the mediocre.”
— Warren Buffett
Model updated · July 2026
The business
Buys small instrument makers, raises their margins, and repeats.
Ametek makes precision electronic instruments and electromechanical components for industrial niches: sensors, measurement equipment, specialized motors. It sells to manufacturers, labs, and aerospace, and charges for high-margin hardware that's hard to replace once installed.
Its edge isn't a single product, it's the machine: it buys small companies, cuts their costs, and raises their margins. That operating discipline, repeated over decades, is hard to copy because it takes culture, not capital. Even so, the model doesn't earn a wide moat: the moat lives in execution, not in monopoly.
Revenue history
From $5.5B to $7.4B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $7.4B · FY2025
Of every $100 in sales, $80 goes to costs and operations; $20 is left as net profit (20% margin).
Catalysts and risks
Organic growth plus acquisitions sustains ~7% annual revenue.
36% gross margin with $1.7B of free cash flow to keep buying.
Healthy balance sheet: $0.5B in cash against $2.3B of debt, room for more deals.
Without steady acquisitions, growth deflates fast.
Overpaying for an acquired company destroys the machine's return.
Industrial demand is cyclical; a recession slows instrument orders.
Charlie's note
“Excellent business, watchmaker-level execution, growing at 7% with a 36% gross margin. The problem is the price: the market pays well above the 12x that current cash flow justifies. Quality is rarely given away.”
Analysis · June 2026
So when would be a good price for Ametek?
By our calculation, not yet. We will email you the day it drops to $77.51 — so you do not have to keep checking.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.