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Carlisle Companies stock has almost doubled over the past five years, while the latest valuation work still points to a discount, with the current share price sitting below an intrinsic value estimate from a Discounted Cash Flow model. That gap sits alongside a long dividend track record, which keeps attention on whether the market is giving enough credit to the company's cash generation.
Carlisle Companies has returned about 93.6% over five years, which puts recent short term share price softness in the context of a strong longer term run.
The recent move to a 14% higher regular quarterly dividend and a 50 year streak of annual dividend increases can support the valuation case, while any pressure on future cash flows that fund those payouts may weigh on what investors are willing to pay.
The stock screens as undervalued on 5 out of 6 checks, so the broader valuation work leans cheap rather than fully priced on Simply Wall St's 5 point value score.
The issue now is whether that apparent undervaluation in Carlisle Companies shares offers a clear margin of safety or reflects risks that are not yet fully visible in the recent numbers.
Find out why Carlisle Companies' -2.7% return over the last year is lagging behind its peers.
The Discounted Cash Flow (DCF) model here focuses on Carlisle Companies and what its future cash generation could be worth today. On this view, the latest twelve month free cash flow sits at about $878.9 million and the projections assume growing cash flows rather than a sharp decline or turnaround story.
On those assumptions, the DCF output points to an estimated intrinsic value of about $512.77 per share. That sits above the current share price, which implies roughly a 26.7% discount and suggests investors are not fully pricing in the projected cash flows. The recent 14% dividend increase and Carlisle Companies joining the group of 50 year dividend raisers underline the focus on cash generation, yet the stock still trades below this intrinsic value estimate.
On this DCF view, Carlisle Companies stock currently appears undervalued relative to the cash flows incorporated into the model.
Our Discounted Cash Flow (DCF) analysis suggests Carlisle Companies is undervalued by 26.7%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Carlisle Companies.
The P/E multiple suits Carlisle Companies because earnings are a key focus for many investors when judging how much they are paying for each dollar of profit. Carlisle Companies trades on a P/E of about 20.4x, which is below the building industry average of 22.8x and the broader peer group average of 42.0x.
A tailored fair P/E ratio for Carlisle Companies that takes account of its size, margins and risk profile is estimated at 24.7x. The current 20.4x level is below that fair multiple, so the stock is pricing in a lower earnings valuation than this framework suggests might be justified. For investors who lean on earnings based metrics, that gap may be worth noting alongside the cash flow work and dividend record already in view.
Taken together, the P/E comparison indicates Carlisle Companies stock may be undervalued on this earnings multiple.
See what the numbers say about this price — find out in our valuation breakdown.
Simply Wall St Narratives for Carlisle Companies pick up where the valuation checks leave off. They spell out which combinations of future growth, margins and earnings would need to play out for Carlisle Companies' stock to be worth materially more or less than today. Where a single ratio or model gives one number, these narratives lay out the future that number rests on so you can watch how the real business lines up with it over time on the Community page.
You can add your own Narrative on Carlisle Companies' stock today and be one of the first voices in the Simply Wall St community to set out a number driven view on whether its 50th consecutive dividend increase and "Made with America" push ultimately deliver for shareholders. Share the assumptions you think matter most and see how your thesis stacks up as new results and dividend decisions come through.
Do you think there's more to the story for Carlisle Companies? Head over to our Community to see what others are saying!
Carlisle Companies screens as undervalued on both its Discounted Cash Flow (DCF) intrinsic value estimate and its earnings multiple, with the two approaches pointing in the same direction rather than contradicting each other. That broad agreement, alongside the wider valuation checks, suggests the market is applying a discount to the cash flows and earnings already built into the current models. The key question now is whether Carlisle Companies can sustain the cash generation and earnings strength that underpin those frameworks, or whether the present discount is the market's way of pricing in longer term pressure on those cash flows.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CSL.
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