AMETEK Inc. (AME)

The base case represents the modal expected compounding path under the approved house schedule. AMETEK delivers solid revenue growth in FY2026 and FY2027 as Indicor's sales contribution is absorbed, with organic growth subsequently moderating toward a sustainable long-term trajectory. Operating margins expand steadily from FY2025 through FY2026 and FY2027, reaching peak efficiency by FY2030. Disciplined reinvestment relative to NOPAT and an exit multiple bridge toward peer medians yields the committee fair value of $171.80.

• Revenue expands solidly in FY2026 and accelerates in FY2027 as Indicor is fully integrated, before moderating steadily across FY2028, FY2029, and FY2030 toward long-term trend rates.
• Operating margin progresses steadily from FY2025 through FY2026, FY2027, FY2028, FY2029, and FY2030, supported by continuous operational excellence initiatives and pricing discipline.
• Diluted EPS compounds steadily from FY2026 through FY2030, driven by operating earnings expansion and ongoing deleveraging.
• Reinvestment rate remains low and disciplined as a percentage of NOPAT, supporting an asset-light capital expenditure run rate relative to sales.
• Effective tax rate holds steady for FY2026 and FY2027 before normalizing through FY2030.
• Terminal perpetual growth aligns with long-term macroeconomic expansion alongside a terminal exit multiple aligned with peer medians.