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Toro Co (TTC) Fair Value & Analysis

Industrials · US · Market cap $9.0B · ISIN US8910921084

What is Toro Co really worth?

TC Toro Co logo Toro Co TTC · US
Price$92.37
Fair Value$69.71
Upside−24.5%
Quality74/100

A solid business, but trading 33% above our fair value of $69.71.

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Strengths

Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +5.9 %/yr)
!Thin margins · 7.3% net margin
!Mixed vs. peers (7/15)
!Moderate moat 63/100
!Weak on valuation: 1 out of 100

For context

·1.67% dividend yield
Evidence: High Range $51.92 – $87.13

Fair value as of: Sep 5, 2026

From 24 valuation models · updated today

Share price −6.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($87.13). The favourable scenario is already priced in.

Price vs Fair Value (5 years)

$109.38 $61.99 Fair Value $69.71 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range $61.99 – $109.38 · fair‑value band $51.92 – $87.13 · the $92.37 price screens above the $69.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

Full chart & analysis →

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Analysis

Toro Co (TTC) currently trades at $92.37, while our model-based Fair Value estimate is $69.71, implying the stock looks roughly 32.5% overvalued today. The Quality Score stands at 74/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $73.18 per share, and 0 of the 24 models we run sit above the $92.37 price. Bear case: the Asset-Based group reads lowest at $10.22, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Toro Co generated revenue of $4.7B at a net margin of 7.3%. Revenue grew 8.1% year over year. It earns a return on equity of 23.9%. Net debt stands at $681M. Fundamentals as of Sep 5, 2026

Our scenario range runs from $51.92 (bear case) to $87.13 (bull case); at $92.37, 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 12% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −43% fair-value upside, at −25%, TTC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 10 months have passed since. In that time the company retained roughly $1.63 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence $57.69 $88.05 $131.18 80
Growth DCF $58.90 $86.14 $122.76 78
Owner Earnings $35.30 $55.00 $82.99 76
All 24 models by family
DCF Models
FCF DCF best evidence $57.69 $88.05 $131.18 80
Owner Earnings $35.30 $55.00 $82.99 76
5Y Revenue Exit $45.42 $71.13 $103.03 72
5Y EBITDA Exit $53.57 $86.06 $122.93 75
5Y P/E Exit $46.54 $73.18 $100.24 71
10Y Revenue Exit $48.14 $72.05 $102.40 67
10Y EBITDA Exit $54.52 $82.06 $116.95 68
10Y P/E Exit $50.17 $73.42 $100.36 64
Earnings-Based
Graham-Dodd $22.57 $62.77 $82.49 65
Lynch FV $12.59 $17.99 $23.39 61
PEG = 1.0 $12.59 $17.99 $23.39 57
EPV $34.91 $41.38 $46.96 74
Multiples
P/E Multiple $52.28 $69.71 $87.13 63
P/S Multiple $42.32 $56.43 $70.54 58
P/B Multiple $42.32 $56.43 $70.54 55
EV/EBIT $59.64 $81.56 $103.47 66
EV/EBITDA $58.81 $80.44 $102.07 67
EV/Revenue $40.82 $60.93 $81.04 53
Asset-Based
NCAV (Graham) $7.63 $10.22 $15.26 54
Growth DCF
Growth DCF $58.90 $86.14 $122.76 78
Rev-Margin DCF $45.42 $71.75 $101.33 72
Economic Profit
Residual Income $20.84 $27.75 $114.53 64
ROIC Compounder $37.19 $47.29 $58.49 72
Growth Earnings
Growth-Adj P/E $41.64 $59.48 $77.33 67

Widest divergence: DCF Models ($73.18) versus Asset-Based ($10.22). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 26.6
P/S ratio 1.87 P/E × margin
EPS (TTM) $3.47 price ÷ EPS = P/E 26.6
Dividend yield 1.7% payout 44.4%
Net margin 7.0% FY2025
Return on equity 23.9% TTM
More key figures
Profitability
Return on assets (EBIT) 15.0% avg 5y
Operating margin 14.5% TTM
Growth
Revenue (TTM) $4.7B TTM
Revenue growth (YoY) +8.1% 3y avg 0.0%
EPS growth (YoY) +9.5%
Balance sheet & cash flow
Free cash flow $578M FY2025
Net debt $681M FY2025 · ≈ 1.2 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 72 · Market factors (momentum, volatility) 61

Profitability 71
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 100
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

The Toro Company provides professional turf maintenance equipment and services. It operates through Professional and Residential segments.

Full company description

The Toro Company provides professional turf maintenance equipment and services. It operates through Professional and Residential segments. It offers riding and walking mowers, greens rollers, all-wheel drive articulating tractors, turf sprayer, utility vehicles, aeration, bunker maintenance, and other turf equipment; sprinkler heads, controllers, turf sensors, valves, and operating software; and riding rotary and reel mowers and attachments, infield grooming equipment, multipurpose vehicles, debris management products, all-wheel drive articulating tractors, sidewalk snow and ice solution vehicles, and related attachments and accessories. The company also provides zero-turn radius riding mowers, walk behind and stand-on mowers, turf application and renovation, tree care, horizontal directional drills, and drilling guidance and support equipment; walk and ride trenchers, vacuum excavators, utility locators and inspection systems, pipe rehabilitation, and replacement solutions; drive chucks and sub savers, drill pipe, starter rods and quick connects, bits and blades, rock tools, reamers, and swivels; and snow removal and ice management solutions. In addition, it offers rotors, sprinkler bodies and nozzles, valves, drip tubing and subsurface irrigation, and electric control devices; wired and wireless rain, freeze, climate, and soil sensors; drip tape, polyethylene tubing, drip line, emitters, filters, fitting, and software related solutions; stand-on skid steers, walk-behind trenchers, stump grinders, material handlers, and other concrete construction equipment; walk power and zero-turn riding mowers, and snow throwers; and grass and hedge trimmers, blower-vacuums, chainsaws, edgers, cultivators, string mowers, and related parts and accessories. The company sells its products through distributors, dealers, mass retailers, hardware retailers, equipment rental and home centers, and online. The company was founded in 1914 and is headquartered in Bloomington, Minnesota.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Toro Co reported revenue of $4.5B in FY2025 versus $4.0B in FY2021, a compound +3.3%/yr. Reported net income was $316M in FY2025, compounding −6.3%/yr from FY2021.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$4.5B
Latest YoY
−1.6%
Avg. revenue 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.
+0.0%
Avg. revenue 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.
+5.9%
Avg. revenue growth/yr (39Y) 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.
+6.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+5.8% (4.1 + 1.7)
Revenue +3.3%/yr
FY21 $4.0B
FY22 $4.5B
FY23 $4.6B
FY24 $4.6B
FY25 $4.5B
Net income −6.3%/yr
FY21 $410M
FY22 $443M
FY23 $330M
FY24 $419M
FY25 $316M
Character of growth · EPS growth decomposed (2014-2025) +7.6 % p.a.
Revenue per share +8.9 %

of which total revenue +7.8 % · buybacks/dilution +1.1 %

EBIT margin −2.1 %
Tax rate +2.0 %
Residual (interest, one-offs) −1.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

TTC screens 33% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "Toro Co Fair Value". https://www.fairvalue-calculator.com/stock/TTC

Recent news

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

Peer Group

Tools & Accessories · 122 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 74 · Top 25%
Fair Value upside −25% · Below median
Return on equity (TTM) 24% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 1.7% · Below median
Debt / equity 0.63× · Higher than 75% of peers

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 26.6× · Pricier than median
P/B 6.19× · Pricier than 75% of peers
P/S (TTM) 1.93× · Pricier than median
P/FCF 15.5× · Pricier than 75% of peers
EV/EBITDA 14.2× · Pricier than median
PEG 1.46× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE1 · sector 4
FUTURE41 · sector 16
PAST96 · sector 28
HEALTH68 · sector 97
DIVIDEND33 · sector 40

Insider activity: 44/100

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

Similar stocks

10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

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Stanley Black & Decker, Inc SWK $99.24 $52.80 −47%
AB SKF (publ) SKFB kr 275.40 kr 180.34 −35%
The Timken Company TKR $130.25 $64.85 −50%
SFS Group SFSN CHF 131.40 CHF 118.30 −10%
Hangzhou Greatstar Industrial Co 002444 ¥30.51 ¥30.38 +0%
Hiwin Technologies Corporation 2049 381.00 TWD 73.32 TWD −81%

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Frequently asked questions

Is Toro Co (TTC) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of $69.71 versus a price of $92.37, about −25% upside (overvalued).
What is the fair value of TTC?
Our model-based fair value for Toro Co is $69.71 (as of Sep 5, 2026), built from audited fundamentals. The current price: $92.37.
What is the quality score of TTC?
Toro Co has a Quality Score of 74/100. 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 Toro Co (TTC)?
Toro Co reported trailing-twelve-month revenue of about $4.7B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of TTC?
The net profit margin of Toro Co is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does Toro Co pay a dividend?
Toro Co currently shows a dividend yield of about 1.67% relative to its recent price (as of Sep 5, 2026).
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