Atmus Filtration Technologies Inc.

ATMU

IndustrialsIndustrial - Pollution & Treatment ControlsNYSE

$55.59

Market Cap: $4.54B

Atmus Filtration Technologies Inc. (ATMU) Valuation Summary

Updated May 9, 2026 16:00

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$47.14 – $163.42	$72.66	+30.7%
Growth Exit 10Y	$51.77 – $168.69	$77.77	+39.9%
EBITDA Exit 5Y	$45.48 – $95.86	$68.58	+23.4%
EBITDA Exit 10Y	$49.90 – $104.54	$73.24	+31.8%
▸ Trading Multiples
P/E	$45.40 – $60.57	$54.38	-2.2%
EV/EBITDA	$31.43 – $49.58	$40.20	-27.7%
EV/Revenue	$41.15 – $73.91	$50.05	-10.0%
▸ PEG
PEG Fair Value	$40.42 – $40.42	$40.42	-27.3%
▸ Earnings Power Value
Earnings Power Value	$30.35 – $45.45	$36.54	-34.3%
▸ Dividend Discount
Dividend Discount	$3.33 – $8.21	$4.90	-91.2%

Valuation History

DCF Analysis

Fair Value

$72.66

Market Price

$55.59

Upside / Downside

+30.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Atmus Filtration Technologies Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 12.9% to 5.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 52, DIO 79). At a 8.3% WACC with mid-year discounting, the terminal value (78% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 3.0% perpetual rate. After subtracting net debt, the equity value implies a fair price of $72.66 per share, suggesting ATMU is undervalued by 30.7% at the current price of $55.59.

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

Terminal Growth

3.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	408	428	445	468	492	507
(−) Net Interest	24	25	26	27	29	30
(+) D&A	44	48	52	54	57	59
EBITDA	476	501	522	550	578	595

(−) Tax	89	93	96	102	107	110
(−) CapEx	54	56	59	62	65	67
(−) ΔWC	25	21	17	24	25	26
Free Cash Flow (FCFF)	309	331	350	362	381	392

Terminal Value						7,360
WACC / Discount Rate	8.3%
Long-term Growth Rate	3.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	297	294	287	274	266	4,933

Enterprise Value	6,350
Projection Period	1,417	22.3%
Terminal Value	4,933	77.7%

(−) Current Net Debt	334

Equity Value	6,016
(/) Outstanding Shares	83

Fair Price	$72.66

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.0%	2.5%	3.0%	3.5%	4.0%
6.3%	$94	$105	$119	$137	$163
7.3%	$76	$82	$90	$100	$113
8.3%	$63	$68	$73	$79	$86
9.3%	$54	$57	$61	$65	$70
10.3%	$47	$49	$52	$55	$58

Current price: $55.59. Green = undervalued, Red = overvalued.

Fair Value

$77.77

Market Price

$55.59

Upside / Downside

+39.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Atmus Filtration Technologies Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 12.9% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 52, DIO 79). At a 8.3% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 3.0% perpetual rate. After subtracting net debt, the equity value implies a fair price of $77.77 per share, suggesting ATMU is undervalued by 39.9% at the current price of $55.59.

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

Terminal Growth

3.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	408	428	445	468	492	516	539	562	583	602	620
(−) Net Interest	24	25	26	27	29	30	32	33	34	35	36
(+) D&A	44	48	52	54	57	59	62	65	68	71	73
EBITDA	476	501	522	550	578	606	633	659	685	709	730

(−) Tax	89	93	96	102	107	112	117	122	126	131	135
(−) CapEx	54	56	59	62	65	68	71	74	77	79	82
(−) ΔWC	25	21	17	24	25	25	24	23	22	20	21
Free Cash Flow (FCFF)	309	331	350	362	381	401	421	440	460	478	492

Terminal Value											9,237
WACC / Discount Rate	8.3%
Long-term Growth Rate	3.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	297	294	287	274	266	258	250	242	233	224	4,149

Enterprise Value	6,773
Projection Period	2,623	38.7%
Terminal Value	4,149	61.3%

(−) Current Net Debt	334

Equity Value	6,439
(/) Outstanding Shares	83

Fair Price	$77.77

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.0%	2.5%	3.0%	3.5%	4.0%
6.3%	$105	$115	$127	$144	$169
7.3%	$84	$90	$97	$106	$117
8.3%	$70	$73	$78	$83	$89
9.3%	$60	$62	$65	$68	$72
10.3%	$52	$53	$55	$58	$60

Current price: $55.59. Green = undervalued, Red = overvalued.

Fair Value

$68.58

Market Price

$55.59

Upside / Downside

+23.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Atmus Filtration Technologies Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 12.9% to 5.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 52, DIO 79). At a 8.3% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $68.58 per share, suggesting ATMU is undervalued by 23.4% at the current price of $55.59.

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

EV/EBITDA Exit Multiple

11.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	408	428	445	468	492	505
(−) Net Interest	24	25	26	27	29	30
(+) D&A	44	48	52	54	57	58
EBITDA	476	501	522	550	578	593

(−) Tax	89	93	96	102	107	—
(−) CapEx	54	56	59	62	65	—
(−) ΔWC	25	21	17	24	25	—
Free Cash Flow (FCF)	309	331	350	362	381	—

Peers' EBITDA Multiple						11.6x
Terminal Value						6,856
WACC / Discount Rate	8.33%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	297	294	287	274	266	4,595

Enterprise Value	6,012
Projection Period	1,417	23.6%
Terminal Value	4,595	76.4%

(−) Current Net Debt	334
Equity Value	5,679
(÷) Outstanding Shares	83M
Fair Price	$69	+23.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
6.3%	$54	$64	$75	$85	$96
7.3%	$52	$62	$72	$82	$92
8.3%	$49	$59	$69	$78	$88
9.3%	$47	$57	$66	$75	$84
10.3%	$45	$54	$63	$72	$80

Current price: $55.59. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$73.25

Market Price

$55.59

Upside / Downside

+31.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Atmus Filtration Technologies Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 12.9% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 52, DIO 79). At a 8.3% WACC with mid-year discounting, the terminal value (59% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $73.24 per share, suggesting ATMU is undervalued by 31.8% at the current price of $55.59.

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

EV/EBITDA Exit Multiple

11.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	408	428	445	468	492	516	539	562	583	602	617
(−) Net Interest	24	25	26	27	29	30	32	33	34	35	36
(+) D&A	44	48	52	54	57	59	62	65	68	71	73
EBITDA	476	501	522	550	578	606	633	659	685	709	726

(−) Tax	89	93	96	102	107	112	117	122	126	131	—
(−) CapEx	54	56	59	62	65	68	71	74	77	79	—
(−) ΔWC	25	21	17	24	25	25	24	23	22	20	—
Free Cash Flow (FCF)	309	331	350	362	381	401	421	440	460	478	—

Peers' EBITDA Multiple											11.6x
Terminal Value											8,403
WACC / Discount Rate	8.33%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	297	294	287	274	266	258	250	242	233	224	3,775

Enterprise Value	6,398
Projection Period	2,623	41.0%
Terminal Value	3,775	59.0%

(−) Current Net Debt	334
Equity Value	6,065
(÷) Outstanding Shares	83M
Fair Price	$73	+31.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
6.3%	$67	$76	$86	$95	$105
7.3%	$62	$70	$79	$88	$96
8.3%	$57	$65	$73	$81	$89
9.3%	$54	$61	$68	$75	$82
10.3%	$50	$56	$63	$70	$76

Current price: $55.59. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$54.38

Market Price

$55.59

Upside / Downside

-2.2%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Atmus Filtration Technologies Inc. (ATMU) has a fair value of $54.38 based on 9 comparable companies in the Industrial - Pollution & Treatment Controls industry.

P/E Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Atmus Filtration Technologies Inc.ATMU	4,603	22.2x	22.7x
Schneider National, Inc.SNDR	5,368	51.9x	44.2x
MDU Resources Group, Inc.MDU	4,604	24.2x	22.9x
VSE CorporationVSEC	4,559	79.1x	55.0x
Mueller Water Products, Inc.MWA	4,126	21.6x	28.1x
Corporación América Airports S.A.CAAP	4,117	16.6x	17.2x
Brady CorporationBRC	3,699	20.0x	19.0x
SkyWest, Inc.SKYW	3,477	8.5x	12.2x
Hayward Holdings, Inc.HAYW	3,163	21.4x	23.0x
Crane NXT, Co.CXT	2,607	18.1x	10.6x
Industry Median		21.4x	22.9x
(*) Profit after tax		207	203
Equity Value		4,447	4,559
(/) Outstanding shares		83	83
Fair Price		$54	$55

Selected Fair Value (avg of trailing + forward)

$54.38

-2.2%

Fair Value

$40.20

Market Price

$55.59

Upside / Downside

-27.7%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Atmus Filtration Technologies Inc. (ATMU) has a fair value of $40.20 based on 10 comparable companies in the Industrial - Pollution & Treatment Controls industry.

EV/EBITDA Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Atmus Filtration Technologies Inc.ATMU	4,603	15.5x	16.4x
Schneider National, Inc.SNDR	5,368	9.2x	9.8x
MDU Resources Group, Inc.MDU	4,604	13.9x	13.0x
VSE CorporationVSEC	4,559	37.3x	37.7x
WillScot Holdings CorporationWSC	4,217	14.0x	14.6x
Mueller Water Products, Inc.MWA	4,126	13.8x	15.3x
Corporación América Airports S.A.CAAP	4,117	6.6x	6.8x
Brady CorporationBRC	3,699	13.0x	14.6x
SkyWest, Inc.SKYW	3,477	5.7x	6.6x
Hayward Holdings, Inc.HAYW	3,163	9.7x	10.6x
Crane NXT, Co.CXT	2,607	10.1x	11.2x
Industry Median		11.6x	12.1x
(*) EBITDA		319	300
= Enterprise Value		3,688	3,636
(-) Net Debt		334	334
Equity Value		3,355	3,302
(/) Outstanding shares		83	83
Fair Price		$41	$40

Selected Fair Value (avg of trailing + forward)

$40.20

-27.7%

Fair Value

$50.05

Market Price

$55.59

Upside / Downside

-10.0%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Atmus Filtration Technologies Inc. (ATMU) has a fair value of $50.05 based on 10 comparable companies in the Industrial - Pollution & Treatment Controls industry.

EV/Revenue Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Atmus Filtration Technologies Inc.ATMU	4,603	2.8x	3.0x
Schneider National, Inc.SNDR	5,368	1.0x	1.1x
MDU Resources Group, Inc.MDU	4,604	3.9x	3.6x
VSE CorporationVSEC	4,559	4.3x	4.4x
WillScot Holdings CorporationWSC	4,217	3.7x	3.8x
Mueller Water Products, Inc.MWA	4,126	2.9x	3.2x
Corporación América Airports S.A.CAAP	4,117	2.4x	2.4x
Brady CorporationBRC	3,699	2.4x	2.7x
SkyWest, Inc.SKYW	3,477	1.4x	1.7x
Hayward Holdings, Inc.HAYW	3,163	2.5x	2.8x
Crane NXT, Co.CXT	2,607	2.1x	2.4x
Industry Median		2.5x	2.8x
(*) Revenue		1,764	1,662
= Enterprise Value		4,385	4,571
(-) Net Debt		334	334
Equity Value		4,051	4,238
(/) Outstanding shares		83	83
Fair Price		$49	$51

Selected Fair Value (avg of trailing + forward)

$50.05

-10.0%

PEG Fair Value

Fair Value

$40.42

Market Price

$55.59

Upside / Downside

-27.3%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 13.8% plus 0.4% dividend yield, the company has a fair value of $40.42 based on NTM EPS (FY2026) of $2.94. The current PEG ratio is 1.38.

PEG Ratio

1.38Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 18.9 ÷ (13.4% + 0.4%) = 1.38

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	13.4%
Dividend Yield	+0.4%
Adjusted Growth (clamped 8–25%)	13.8%
Fair P/E	13.8x
NTM EPS (FY2026)	$2.94
Fair Value	$40.42

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$2.50	—	—
FY2026E	$2.94	+17.4%	4
FY2027E	$3.21	+9.5%	4

2Y Forward EPS CAGR: 13.4%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$170.1M	$2.04	—
FY2022	$170.4M	$2.05	+0.5%
FY2023	$171.3M	$2.05	+0.0%
FY2024	$185.6M	$2.22	+8.3%
FY2025	$207.4M	$2.50	+12.6%

4Y Historical EPS CAGR: 5.2%

Earnings Power Value

Fair Value

$36.54

Market Price

$55.59

Upside / Downside

-34.3%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 8.3% and normalized earnings of $279.9M, the company has a fair value of $36.54 per share. The EPV range is $30.35 – $45.45 based on WACC sensitivity (6.8% – 9.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	280	280	280
(/) WACC	9.8%	8.3%	6.8%
Enterprise Value	2,847	3,359	4,097
(-) Net debt	334	334	334
Equity Value	2,513	3,026	3,763
(/) Outstanding shares	83	83	83
Fair Price	$30.35	$36.54	$45.45

Dividend Discount Model

Fair Value

$4.90

Market Price

$55.59

Upside / Downside

-91.2%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.8% and projected dividend growth of 9.5%, the fair value is $4.90 per share. The DDM range is $3.33 – $8.21 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$0.21

Dividend Yield

0.38%

Payout Ratio

8.3%

Dividend Coverage

11.99x

FCF Payout Ratio11.6%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$0.21	8.3%	+110.4%
2024	$0.10	4.5%	—
2023	—	0.0%	—
2022	—	0.0%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$0.23	9.5%	0.9191	$0.21
2027	$0.25	9.5%	0.8447	$0.21
2028	$0.27	9.5%	0.7764	$0.21
2029	$0.30	9.5%	0.7135	$0.21
2030	$0.33	9.5%	0.6558	$0.22
Terminal Value	$0.34 DPS	3.0%		$3.83

PV of Projected Dividends$1.07

PV of Terminal Value$3.83

Fair Value per Share$4.90

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	7.5%	8.5%	9.5%	10.5%	11.5%
6.8%	$7	$7	$8	$8	$8
7.8%	$5	$6	$6	$6	$6
8.8%	$5	$5	$5	$5	$5
9.8%	$4	$4	$4	$4	$5
10.8%	$3	$3	$4	$4	$4

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Atmus Filtration Technologies Inc. (ATMU) Valuation Summary

Updated May 9, 2026 16:00

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$47.14 – $163.42	$72.66	+30.7%
Growth Exit 10Y	$51.77 – $168.69	$77.77	+39.9%
EBITDA Exit 5Y	$45.48 – $95.86	$68.58	+23.4%
EBITDA Exit 10Y	$49.90 – $104.54	$73.24	+31.8%
▸ Trading Multiples
P/E	$45.40 – $60.57	$54.38	-2.2%
EV/EBITDA	$31.43 – $49.58	$40.20	-27.7%
EV/Revenue	$41.15 – $73.91	$50.05	-10.0%
▸ PEG
PEG Fair Value	$40.42 – $40.42	$40.42	-27.3%
▸ Earnings Power Value
Earnings Power Value	$30.35 – $45.45	$36.54	-34.3%
▸ Dividend Discount
Dividend Discount	$3.33 – $8.21	$4.90	-91.2%

Valuation History

DCF Analysis

Fair Value

$72.66

Market Price

$55.59

Upside / Downside

+30.7%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

Terminal Growth

3.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	408	428	445	468	492	507
(−) Net Interest	24	25	26	27	29	30
(+) D&A	44	48	52	54	57	59
EBITDA	476	501	522	550	578	595

(−) Tax	89	93	96	102	107	110
(−) CapEx	54	56	59	62	65	67
(−) ΔWC	25	21	17	24	25	26
Free Cash Flow (FCFF)	309	331	350	362	381	392

Terminal Value						7,360
WACC / Discount Rate	8.3%
Long-term Growth Rate	3.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	297	294	287	274	266	4,933

Enterprise Value	6,350
Projection Period	1,417	22.3%
Terminal Value	4,933	77.7%

(−) Current Net Debt	334

Equity Value	6,016
(/) Outstanding Shares	83

Fair Price	$72.66

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.0%	2.5%	3.0%	3.5%	4.0%
6.3%	$94	$105	$119	$137	$163
7.3%	$76	$82	$90	$100	$113
8.3%	$63	$68	$73	$79	$86
9.3%	$54	$57	$61	$65	$70
10.3%	$47	$49	$52	$55	$58

Current price: $55.59. Green = undervalued, Red = overvalued.

Fair Value

$77.77

Market Price

$55.59

Upside / Downside

+39.9%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

Terminal Growth

3.00%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	408	428	445	468	492	516	539	562	583	602	620
(−) Net Interest	24	25	26	27	29	30	32	33	34	35	36
(+) D&A	44	48	52	54	57	59	62	65	68	71	73
EBITDA	476	501	522	550	578	606	633	659	685	709	730

(−) Tax	89	93	96	102	107	112	117	122	126	131	135
(−) CapEx	54	56	59	62	65	68	71	74	77	79	82
(−) ΔWC	25	21	17	24	25	25	24	23	22	20	21
Free Cash Flow (FCFF)	309	331	350	362	381	401	421	440	460	478	492

Terminal Value											9,237
WACC / Discount Rate	8.3%
Long-term Growth Rate	3.0%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	297	294	287	274	266	258	250	242	233	224	4,149

Enterprise Value	6,773
Projection Period	2,623	38.7%
Terminal Value	4,149	61.3%

(−) Current Net Debt	334

Equity Value	6,439
(/) Outstanding Shares	83

Fair Price	$77.77

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.0%	2.5%	3.0%	3.5%	4.0%
6.3%	$105	$115	$127	$144	$169
7.3%	$84	$90	$97	$106	$117
8.3%	$70	$73	$78	$83	$89
9.3%	$60	$62	$65	$68	$72
10.3%	$52	$53	$55	$58	$60

Current price: $55.59. Green = undervalued, Red = overvalued.

Fair Value

$68.58

Market Price

$55.59

Upside / Downside

+23.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Atmus Filtration Technologies Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 12.9% to 5.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 52, DIO 79). At a 8.3% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $68.58 per share, suggesting ATMU is undervalued by 23.4% at the current price of $55.59.

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

EV/EBITDA Exit Multiple

11.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	408	428	445	468	492	505
(−) Net Interest	24	25	26	27	29	30
(+) D&A	44	48	52	54	57	58
EBITDA	476	501	522	550	578	593

(−) Tax	89	93	96	102	107	—
(−) CapEx	54	56	59	62	65	—
(−) ΔWC	25	21	17	24	25	—
Free Cash Flow (FCF)	309	331	350	362	381	—

Peers' EBITDA Multiple						11.6x
Terminal Value						6,856
WACC / Discount Rate	8.33%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	297	294	287	274	266	4,595

Enterprise Value	6,012
Projection Period	1,417	23.6%
Terminal Value	4,595	76.4%

(−) Current Net Debt	334
Equity Value	5,679
(÷) Outstanding Shares	83M
Fair Price	$69	+23.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
6.3%	$54	$64	$75	$85	$96
7.3%	$52	$62	$72	$82	$92
8.3%	$49	$59	$69	$78	$88
9.3%	$47	$57	$66	$75	$84
10.3%	$45	$54	$63	$72	$80

Current price: $55.59. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$73.25

Market Price

$55.59

Upside / Downside

+31.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Atmus Filtration Technologies Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 12.9% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 52, DIO 79). At a 8.3% WACC with mid-year discounting, the terminal value (59% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $73.24 per share, suggesting ATMU is undervalued by 31.8% at the current price of $55.59.

FCFF Present Value Calculation

WACC

8.33%

3% – 20%

EV/EBITDA Exit Multiple

11.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	408	428	445	468	492	516	539	562	583	602	617
(−) Net Interest	24	25	26	27	29	30	32	33	34	35	36
(+) D&A	44	48	52	54	57	59	62	65	68	71	73
EBITDA	476	501	522	550	578	606	633	659	685	709	726

(−) Tax	89	93	96	102	107	112	117	122	126	131	—
(−) CapEx	54	56	59	62	65	68	71	74	77	79	—
(−) ΔWC	25	21	17	24	25	25	24	23	22	20	—
Free Cash Flow (FCF)	309	331	350	362	381	401	421	440	460	478	—

Peers' EBITDA Multiple											11.6x
Terminal Value											8,403
WACC / Discount Rate	8.33%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	297	294	287	274	266	258	250	242	233	224	3,775

Enterprise Value	6,398
Projection Period	2,623	41.0%
Terminal Value	3,775	59.0%

(−) Current Net Debt	334
Equity Value	6,065
(÷) Outstanding Shares	83M
Fair Price	$73	+31.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
6.3%	$67	$76	$86	$95	$105
7.3%	$62	$70	$79	$88	$96
8.3%	$57	$65	$73	$81	$89
9.3%	$54	$61	$68	$75	$82
10.3%	$50	$56	$63	$70	$76

Current price: $55.59. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$54.38

Market Price

$55.59

Upside / Downside

-2.2%

Verdict

Overvalued

P/E Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Atmus Filtration Technologies Inc.ATMU	4,603	22.2x	22.7x
Schneider National, Inc.SNDR	5,368	51.9x	44.2x
MDU Resources Group, Inc.MDU	4,604	24.2x	22.9x
VSE CorporationVSEC	4,559	79.1x	55.0x
Mueller Water Products, Inc.MWA	4,126	21.6x	28.1x
Corporación América Airports S.A.CAAP	4,117	16.6x	17.2x
Brady CorporationBRC	3,699	20.0x	19.0x
SkyWest, Inc.SKYW	3,477	8.5x	12.2x
Hayward Holdings, Inc.HAYW	3,163	21.4x	23.0x
Crane NXT, Co.CXT	2,607	18.1x	10.6x
Industry Median		21.4x	22.9x
(*) Profit after tax		207	203
Equity Value		4,447	4,559
(/) Outstanding shares		83	83
Fair Price		$54	$55

Selected Fair Value (avg of trailing + forward)

$54.38

-2.2%

Fair Value

$40.20

Market Price

$55.59

Upside / Downside

-27.7%

Verdict

Overvalued

EV/EBITDA Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Atmus Filtration Technologies Inc.ATMU	4,603	15.5x	16.4x
Schneider National, Inc.SNDR	5,368	9.2x	9.8x
MDU Resources Group, Inc.MDU	4,604	13.9x	13.0x
VSE CorporationVSEC	4,559	37.3x	37.7x
WillScot Holdings CorporationWSC	4,217	14.0x	14.6x
Mueller Water Products, Inc.MWA	4,126	13.8x	15.3x
Corporación América Airports S.A.CAAP	4,117	6.6x	6.8x
Brady CorporationBRC	3,699	13.0x	14.6x
SkyWest, Inc.SKYW	3,477	5.7x	6.6x
Hayward Holdings, Inc.HAYW	3,163	9.7x	10.6x
Crane NXT, Co.CXT	2,607	10.1x	11.2x
Industry Median		11.6x	12.1x
(*) EBITDA		319	300
= Enterprise Value		3,688	3,636
(-) Net Debt		334	334
Equity Value		3,355	3,302
(/) Outstanding shares		83	83
Fair Price		$41	$40

Selected Fair Value (avg of trailing + forward)

$40.20

-27.7%

Fair Value

$50.05

Market Price

$55.59

Upside / Downside

-10.0%

Verdict

Overvalued

EV/Revenue Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Atmus Filtration Technologies Inc.ATMU	4,603	2.8x	3.0x
Schneider National, Inc.SNDR	5,368	1.0x	1.1x
MDU Resources Group, Inc.MDU	4,604	3.9x	3.6x
VSE CorporationVSEC	4,559	4.3x	4.4x
WillScot Holdings CorporationWSC	4,217	3.7x	3.8x
Mueller Water Products, Inc.MWA	4,126	2.9x	3.2x
Corporación América Airports S.A.CAAP	4,117	2.4x	2.4x
Brady CorporationBRC	3,699	2.4x	2.7x
SkyWest, Inc.SKYW	3,477	1.4x	1.7x
Hayward Holdings, Inc.HAYW	3,163	2.5x	2.8x
Crane NXT, Co.CXT	2,607	2.1x	2.4x
Industry Median		2.5x	2.8x
(*) Revenue		1,764	1,662
= Enterprise Value		4,385	4,571
(-) Net Debt		334	334
Equity Value		4,051	4,238
(/) Outstanding shares		83	83
Fair Price		$49	$51

Selected Fair Value (avg of trailing + forward)

$50.05

-10.0%

PEG Fair Value

Fair Value

$40.42

Market Price

$55.59

Upside / Downside

-27.3%

Verdict

Overvalued

PEG Ratio

1.38Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 18.9 ÷ (13.4% + 0.4%) = 1.38

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	13.4%
Dividend Yield	+0.4%
Adjusted Growth (clamped 8–25%)	13.8%
Fair P/E	13.8x
NTM EPS (FY2026)	$2.94
Fair Value	$40.42

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$2.50	—	—
FY2026E	$2.94	+17.4%	4
FY2027E	$3.21	+9.5%	4

2Y Forward EPS CAGR: 13.4%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$170.1M	$2.04	—
FY2022	$170.4M	$2.05	+0.5%
FY2023	$171.3M	$2.05	+0.0%
FY2024	$185.6M	$2.22	+8.3%
FY2025	$207.4M	$2.50	+12.6%

4Y Historical EPS CAGR: 5.2%

Earnings Power Value

Fair Value

$36.54

Market Price

$55.59

Upside / Downside

-34.3%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	280	280	280
(/) WACC	9.8%	8.3%	6.8%
Enterprise Value	2,847	3,359	4,097
(-) Net debt	334	334	334
Equity Value	2,513	3,026	3,763
(/) Outstanding shares	83	83	83
Fair Price	$30.35	$36.54	$45.45

Dividend Discount Model

Fair Value

$4.90

Market Price

$55.59

Upside / Downside

-91.2%

Verdict

Overvalued

Dividend Profile

Current DPS

$0.21

Dividend Yield

0.38%

Payout Ratio

8.3%

Dividend Coverage

11.99x

FCF Payout Ratio11.6%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$0.21	8.3%	+110.4%
2024	$0.10	4.5%	—
2023	—	0.0%	—
2022	—	0.0%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$0.23	9.5%	0.9191	$0.21
2027	$0.25	9.5%	0.8447	$0.21
2028	$0.27	9.5%	0.7764	$0.21
2029	$0.30	9.5%	0.7135	$0.21
2030	$0.33	9.5%	0.6558	$0.22
Terminal Value	$0.34 DPS	3.0%		$3.83

PV of Projected Dividends$1.07

PV of Terminal Value$3.83

Fair Value per Share$4.90

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	7.5%	8.5%	9.5%	10.5%	11.5%
6.8%	$7	$7	$8	$8	$8
7.8%	$5	$6	$6	$6	$6
8.8%	$5	$5	$5	$5	$5
9.8%	$4	$4	$4	$4	$5
10.8%	$3	$3	$4	$4	$4