TTC
Toro Co
Price:  
74.54 
USD
Volume:  
500,887
United States | Machinery

TTC Fair Value

-41.9 %
Upside

What is the fair value of TTC?

As of 2025-07-06, the Fair Value of Toro Co (TTC) is 43.33 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 74.54 USD, the upside of Toro Co is -41.9%.

Is TTC a good investment?

With the market price of 74.54 USD and our fair value calculation, Toro Co (TTC) is not a good investment. Investing in TTC stocks now will result in a potential loss of 41.9%.

74.54 USD
Stock Price
43.33 USD
Fair Price
FAIR VALUE CALCULATION

TTC Fair Value

Peter Lynch's formula is:

TTC Fair Value
= Earnings Growth Rate x TTM EPS
TTC Fair Value
= 10.8 x 4
TTC Fair Value
= 43.33

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
10-202010-202110-202210-202310-20245Y Avg
Net income329.7409.88443.34329.7418.9386
YoY growth20.3%24.3%8.2%-25.6%27.1%10.8%

TTC Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Deere & Co141,39620.8520.62-0.1%
Pentair PLC17,5833.956.55-47.1%
Snap-On Inc16,81819.5181.7-43.5%
Lincoln Electric Holdings Inc12,0758.3125.9-41.8%
Donaldson Company Inc8,517328.51-60%
AGCO Corp8,181-7.8-195.19-277.9%
Middleby Corp7,9498.1134.09-9.8%
Gates Industrial Corporation PLC6,1890.821.04-12.4%
Timken Co5,3644.723.41-69.5%
Lindsay Corp1,6127174.7417.8%

TTC Fair Value - Key Data

Market Cap (mil)7,441
P/E18.7x
Forward P/E15.1x
EPS4
Avg earnings growth rate10.8%
TTM earnings399

TTC Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.