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The Toro Company (TTC) Fair Value & Analysis

Industrials · US · Market cap $9.0B

TT The Toro Company logo The Toro Company TTC · US
Price$96.67
Fair Value$69.71
Upside-27.9%
Quality74/100
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Mixed Growth
Thin margins · 7.3% net margin
Moderate debt · generates free cash flow
1.61% dividend yield
Mixed vs. peers (7/15)
Moderate moat 63/100
Evidence: High Range $51.92 – $87.13 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated yesterday

Share price +4.3% over the past month.

A solid business, but screening 28% overvalued on our models.

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.
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Price vs Fair Value (5 years)

$109.38 $61.99 Fair Value $69.71 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 $61.99 – $109.38 · fair‑value band $51.92 – $87.13 · the $96.67 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 Aug 13, 2026.

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Analysis

The Toro Company (TTC) currently trades at $96.67, while our model-based Fair Value estimate is $69.71, implying the stock looks roughly 27.9% overvalued today. The Quality Score stands at 74/100 (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, The Toro Company 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 Aug 13, 2026

Our scenario range runs from $51.92 (bear case) to $87.13 (bull case); at $96.67, 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 8% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -28%, TTC 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 $58.90 $86.14 $122.76 80
Residual Income $20.84 $27.75 $114.53 76
Rev-Margin DCF $45.42 $71.75 $101.33 74
All 24 models by family
DCF Models
FCF DCF $57.69 $88.05 $131.18 38
Owner Earnings $35.30 $55.00 $82.99 31
5Y Revenue Exit $45.42 $71.13 $103.03 39
5Y EBITDA Exit $53.57 $86.06 $122.93 41
5Y P/E Exit $46.54 $73.18 $100.24 38
10Y Revenue Exit $48.14 $72.05 $102.40 36
10Y EBITDA Exit $54.52 $82.06 $116.95 37
10Y P/E Exit $50.17 $73.42 $100.36 35
Earnings-Based
Graham-Dodd $22.57 $62.77 $82.49 54
Lynch FV $12.59 $17.99 $23.39 50
PEG = 1.0 $12.59 $17.99 $23.39 46
EPV $34.91 $41.38 $46.96 59
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 53
EV/EBITDA $58.81 $80.44 $102.07 54
EV/Revenue $40.82 $60.93 $81.04 43
Asset-Based
NCAV (Graham) $7.63 $10.22 $15.26 50
Growth DCF
Growth DCF $58.90 $86.14 $122.76 80
Rev-Margin DCF $45.42 $71.75 $101.33 74
Economic Profit
Residual Income $20.84 $27.75 $114.53 76
ROIC Compounder $37.19 $47.29 $58.49 72
Growth Earnings
Growth-Adj P/E $41.64 $59.48 $77.33 68

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

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Key figures & financial health

Revenue (TTM) $4.7B
Revenue growth (YoY) +8.1%
Net margin 7.3%
Return on equity 23.9%
Free cash flow $578M FY2025
P/E ratio 27.9
More key figures
Operating margin 14.5%
EPS (TTM) $3.47
Dividend yield 1.6%
EPS growth (YoY) +9.5%
Net debt $681M FY2025

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

Quality Score breakdown

Overall quality 74/100

Of which business quality 72 · Market factors (momentum, volatility) 67

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 53
Price trend over the last 3–12 months (market factor)
52W Momentum 74
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.

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

The Toro Company 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. 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. 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. 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%
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 pp

of which total revenue +7.8 pp · buybacks/dilution +1.2 pp

EBIT margin −2.1 pp
Tax rate +2.0 pp
Residual (interest, one-offs) −1.2 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).

TTC screens 28% overvalued. Compare with Techtronic Industries Company →

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

Earlier 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 −28% · 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% · Above median
Revenue growth 8% · Above median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.63× · Higher than 75% of peers

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 27.9× · 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

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 4
FUTURE 41 · sector 14
PAST 96 · sector 29
HEALTH 68 · sector 97
DIVIDEND 32 · sector 35

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

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

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

Similar stocks

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

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$144.80 HK$78.62 -46%
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Lincoln Electric Holdings LECO $286.97 $151.86 -47%
Stanley Black & Decker, Inc SWK $102.90 $52.80 -49%
AB SKF (publ) SKFB kr 259.50 kr 192.57 -26%
The Timken Company TKR $130.25 $64.85 -50%
Hangzhou Greatstar Industrial Co 002444 ¥30.08 ¥30.38 +1%
Hiwin Technologies Corporation 2049 381.00 TWD 73.32 TWD -81%
Precision Tsugami (China) Corporation 1651 HK$52.00 HK$55.75 +7%

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Frequently asked questions

Is The Toro Company (TTC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $69.71 versus a price of $96.67, about −28% (overvalued).
What is the fair value of TTC?
Our model-based fair value for The Toro Company is $69.71 (as of Aug 13, 2026), built from audited fundamentals. The current price is $96.67.
What is the quality score of TTC?
The Toro Company 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 The Toro Company (TTC)?
The Toro Company reported trailing-twelve-month revenue of about $4.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of TTC?
The net profit margin of The Toro Company is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does The Toro Company pay a dividend?
The Toro Company currently shows a dividend yield of about 1.69% 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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