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Powell Industries, Inc (POWL) Fair Value & Analysis

Industrials · US · Market cap $9.0B

PI Powell Industries, Inc logo Powell Industries, Inc POWL · US
Price$204.04
Fair Value$88.39
Upside-56.7%
Quality69/100
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Healthy Growth
Solidly profitable · 16.5% net margin
Low debt · generates free cash flow
0.15% dividend yield
Mixed vs. peers (6/15)
Wide moat 75/100
Evidence: High Range $60.34 – $112.74 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from $89.70 to $88.39 (−1.5%) since Jul 16, 2026. Share price −12.9% over the past month.

A solid business, but screening 57% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($112.74). The favourable scenario is already priced in.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($60.34 to $112.74) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$321.94 $5.95 Fair Value $88.39 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $5.95 – $321.94 · fair‑value band $60.34 – $112.74 · the $204.04 price screens above the $88.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Powell Industries, Inc (POWL) currently trades at $204.04, while our model-based Fair Value estimate is $88.39, implying the stock looks roughly 56.7% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Powell Industries, Inc generated revenue of $1.1B at a net margin of 16.5%. Revenue grew 6.5% year over year. It earns a return on equity of 29.9%. The balance sheet holds a net cash position of $449M. Fundamentals as of Aug 13, 2026

Our scenario range runs from $60.34 (bear case) to $112.74 (bull case); at $204.04, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 38% below its 52-week high and 261% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -65% fair-value upside, at -57%, POWL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $60.25 $87.49 $128.35 80
Residual Income $32.46 $44.54 $279.70 76
Rev-Margin DCF $52.90 $77.20 $106.23 74
All 24 models by family
DCF Models
FCF DCF $59.91 $88.03 $130.86 38
Owner Earnings $66.08 $97.84 $146.23 31
5Y Revenue Exit $52.90 $77.18 $108.44 39
5Y EBITDA Exit $64.12 $98.76 $139.94 41
5Y P/E Exit $74.49 $118.74 $166.47 38
10Y Revenue Exit $53.85 $76.63 $108.00 36
10Y EBITDA Exit $62.07 $91.51 $132.14 37
10Y P/E Exit $68.62 $105.28 $152.47 35
Earnings-Based
Graham-Dodd $33.74 $120.01 $161.60 54
Lynch FV $28.20 $40.29 $52.37 50
PEG = 1.0 $28.20 $40.29 $52.37 46
EPV $53.55 $60.05 $65.66 59
Multiples
P/E Multiple $78.14 $104.19 $130.23 63
P/S Multiple $45.47 $60.62 $75.78 58
P/B Multiple $59.36 $79.15 $98.93 55
EV/EBIT $88.61 $114.02 $139.44 53
EV/EBITDA $72.61 $92.69 $112.78 54
EV/Revenue $50.55 $66.92 $83.29 43
Asset-Based
NCAV (Graham) $8.79 $11.78 $17.59 50
Growth DCF
Growth DCF $60.25 $87.49 $128.35 80
Rev-Margin DCF $52.90 $77.20 $106.23 74
Economic Profit
Residual Income $32.46 $44.54 $279.70 76
ROIC Compounder $55.17 $63.83 $72.62 72
Growth Earnings
Growth-Adj P/E $54.21 $77.45 $100.68 68

Widest divergence: DCF Models ($91.51) versus Asset-Based ($11.78). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $1.1B
Revenue growth (YoY) +6.5%
Net margin 16.5%
Return on equity 29.9%
Free cash flow $155M FY2025
P/E ratio 37.7
More key figures
Operating margin 19.4%
EPS (TTM) $5.41
Dividend yield 0.2%
EPS growth (YoY) -1.6%
Net cash $449M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 70 · Market factors (momentum, volatility) 50

Profitability 77
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 97
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 26
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems.

Full company description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company's products portfolio includes integrated power control room substations, custom-engineered modules, and electrical houses; and traditional and arc-resistant distribution switchgears and control gears, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems. It also provides field service inspection, installation, commissioning, modification, and repair services; spare parts; retrofit and retrofill components for existing systems; and replacement circuit breakers for switchgears. The company serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines and refineries, petrochemical, electric utility, light rail traction power, mining and metals, pulp and paper, data centers, commercial construction, and other industrial markets, as well as universities and government entities. It operates in the United States, Canada, the Middle East, Africa, Europe, Mexico, the Asia/Pacific, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Powell Industries, Inc reported revenue of $1.1B in FY2025 versus $471M in FY2021, a compound +23.8%/yr. Reported net income was $181M in FY2025, compounding +311.4%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$1.1B
Latest YoY
+9.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+27.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.3%
Avg. growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.3%
Revenue +23.8%/yr
FY21 $471M
FY22 $533M
FY23 $699M
FY24 $1.0B
FY25 $1.1B
Net income +311.4%/yr
FY21 $631K
FY22 $13.7M
FY23 $54.5M
FY24 $150M
FY25 $181M
Character of growth · EPS growth decomposed (2014-2025) +20.6 % p.a.
Revenue per share +1.5 pp

of which total revenue +4.6 pp · buybacks/dilution −3.1 pp

EBIT margin +18.6 pp
Tax rate +1.6 pp
Residual (interest, one-offs) −1.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

POWL screens 57% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Powell Industries, Inc Fair Value". https://www.fairvalue-calculator.com/stock/POWL

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Electrical Equipment & Parts · 525 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside −57% · Below median
Return on equity (TTM) 30% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth 7% · Below median
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 37.7× · Pricier than median
P/B 14.04× · Pricier than 75% of peers
P/S (TTM) 7.95× · Pricier than 75% of peers
P/FCF 58.1× · Pricier than 75% of peers
EV/EBITDA 36.9× · Pricier than 75% of peers
PEG 2.49× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 33 · sector 57
PAST 100 · sector 27
HEALTH 100 · sector 97
DIVIDEND 3 · sector 20

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 -40%
Delta Electronics (Thailand) Public Company DELTA 269.00 THB 40.28 THB -85%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW -45%
WEG S.A WEGE3 14,900 ARS 4,338 ARS -71%
Sungrow Power Supply Co 300274 ¥117.53 ¥123.83 +5%
HD Hyundai Electric Co 267260 782,000 KRW 371,133 KRW -53%
LS ELECTRIC Co 010120 208,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,892,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹35,800 ₹6,106 -83%
Polycab India Limited POLYCAB ₹9,289 ₹3,218 -65%

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Frequently asked questions

Is Powell Industries, Inc (POWL) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $88.39 versus a price of $204.04, about −57% (overvalued).
What is the fair value of POWL?
Our model-based fair value for Powell Industries, Inc is $88.39 (as of Aug 13, 2026), built from audited fundamentals. The current price is $204.04.
What is the quality score of POWL?
Powell Industries, Inc has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Powell Industries, Inc (POWL)?
Powell Industries, Inc reported trailing-twelve-month revenue of about $1.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of POWL?
The net profit margin of Powell Industries, Inc is about 16.5%, meaning it keeps roughly 16.5% of revenue as net income. Based on the latest reported figures.
Does Powell Industries, Inc pay a dividend?
Powell Industries, Inc currently shows a dividend yield of about 0.12% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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