US Equities Analysis

IEX — IDEX Corporation

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 19.89%
Profit Margins 14.38%
Return on Equity 12.75%
Return on Assets 6.76%
Free Float 0.07B
Dividend Yield 1.29%
Short Int % Utilisation 3.47%

2.2 Growth

Metric Value
Revenue Growth 8.9%
Free Cash Flow 0.53B
EBITDA 18.06 (Ratio)
Enterprise Value 17.19B
EV/Revenue 4.87
EV/EBITDA 18.06

Revenue growth of 8.9% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 51.39%
Risk / Std Dev (Ann.)* 22.59%
1-Year Price Return* 47.17%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $238.94
52-Week Range $158.19 – $243.80
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $3.46B
Prior annual revenue $3.27B
EBIT $697.00M
Tax rate 23.70%
NOPAT = EBIT × (1 − tax rate) $531.81M
Forecast start-growth basis 5.77%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $531.81M
Add: depreciation & amortisation $206.50M
Less: capital expenditure -$63.60M
Less/(add): working-capital cash-flow movement -$54.10M
Current unlevered FCFF $620.61M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 5.77% $562.51M $218.42M -$67.27M -$57.22M $656.44M $627.74M
2 4.95% $590.38M $229.24M -$110.26M -$60.06M $649.30M $567.80M
3 4.14% $614.80M $238.72M -$156.12M -$62.54M $634.86M $507.69M
4 3.32% $635.20M $246.65M -$203.98M -$64.62M $613.25M $448.47M
5 2.50% $651.08M $252.81M -$252.81M -$66.23M $584.85M $391.11M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.98
Cost of equity 10.08%
Pre-tax cost of debt 3.36%
WACC 9.35%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $8.75B
Implied terminal EV / EBITDA 7.91x
Terminal value as % of enterprise value 68.75%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $2.54B
Present value of terminal value $5.59B
Indicated enterprise value $8.14B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $8.14B
Less: gross interest-bearing debt $1.85B
Add: cash and equivalents $580.00M
Add: affiliate investments $0.00
Less: minority interests -$1.30M
Indicated common equity value $6.87B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 75,300,000.00
Share-count basis reported diluted weighted-average shares
Current market price $234.32
DCF indicative value per share $91.23
Indicative value vs. market price -61.07%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:37:34.734019 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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