<div id="readability-page-1"><div><ul> <li>If you are wondering whether Stanley Black &amp; Decker is attractively priced today, the key question is whether the current share price fairly reflects the company’s underlying fundamentals.</li> <li>The stock closed at US$73.74, with returns of 7.6% decline over 7 days, 17.9% decline over 30 days, a 3.6% decline year to date, a 4.8% decline over 1 year, a 4.2% return over 3 years and a 55.1% decline over 5 years. This performance may have some investors reassessing both risk and potential reward.</li> <li>Recent news around Stanley Black &amp; Decker has focused on its position in tools, storage and industrial products, as investors weigh how its brand strength fits with current market sentiment. Coverage has also highlighted how the company is responding to its operating environment, giving useful context for the recent share price moves.</li> <li>Simply Wall St’s valuation checks give Stanley Black &amp; Decker a score of 4 out of 6. We will unpack this using standard valuation approaches, and then finish by looking at a broader way to think about what the stock might be worth.</li> </ul> Find out why Stanley Black &amp; Decker's -4.8% return over the last year is lagging behind its peers. <h3>Approach 1: Stanley Black &amp; Decker Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow model takes projected future cash flows and discounts them back to today using a required rate of return to estimate what the business might be worth per share. For Stanley Black &amp; Decker, the 2 Stage Free Cash Flow to Equity model starts with last twelve months free cash flow of about $652.1 million. Analysts provide explicit free cash flow estimates up to 2029, with Simply Wall St extrapolating further to build a ten-year path. For example, projected free cash flow for 2029 is $1,171.0 million, and the discounted values across 2026 to 2035 range from roughly $627.9 million to $871.2 million. Based on this model, the estimated intrinsic value is about US$115.65 per share, compared with the recent share price of US$73.74. Within this DCF framework, that difference corresponds to the stock trading at roughly a 36.2% discount to the model’s estimate of intrinsic value. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Stanley Black &amp; Decker is undervalued by 36.2%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9eda325c-7ba7-4e7f-9b2e-cd374c5420a2/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTEx?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9eda325c-7ba7-4e7f-9b2e-cd374c5420a2/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTEx"/><figcaption>SWK Discounted Cash Flow as at Mar 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Stanley Black &amp; Decker. <h3>Approach 2: Stanley Black &amp; Decker Price vs Earnings</h3> For profitable companies, the P/E ratio is a useful way to think about value because it links what you pay per share to the earnings the business is currently generating. Higher growth expectations or lower perceived risk usually justify a higher P/E, while slower growth or higher risk tend to go with a lower P/E as a “normal” range. Stanley Black &amp; Decker is trading on a P/E of 28.49x. That sits slightly above the Machinery industry average of 27.01x and above its peer group average of 26.04x, so on simple comparisons the shares are priced a bit richer than many similar companies. Simply Wall St’s Fair Ratio for Stanley Black &amp; Decker is 41.97x. This is a proprietary estimate of what the P/E could be given factors such as the company’s earnings growth profile, industry, profit margins, market cap and specific risks. Because it adjusts for these company level characteristics, the Fair Ratio can be more informative than a straight comparison with peers or the broad industry. Comparing the current P/E of 28.49x with the Fair Ratio of 41.97x suggests the shares are trading below that model based estimate. Result: UNDERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9eda325c-7ba7-4e7f-9b2e-cd374c5420a2/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTEx?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9eda325c-7ba7-4e7f-9b2e-cd374c5420a2/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTEx"/><figcaption>NYSE:SWK P/E Ratio as at Mar 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies. <h3>Upgrade Your Decision Making: Choose your Stanley Black &amp; Decker Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simple stories that you and other investors build around Stanley Black &amp; Decker by linking your view of its future revenue, earnings and margins to a forecast and then to a fair value you can compare with today’s price. On Simply Wall St’s Community page, Narratives are an easy tool that millions of investors use to spell out why they think a company should be worth a certain amount. The platform then keeps those Narratives refreshed when new information such as news or earnings is added so the fair value view stays aligned with the latest data. For Stanley Black &amp; Decker, one Narrative might lean toward the higher end of analyst expectations with a fair value around US$118.12 or even a price target of US$120.15. Another might sit near the lower end with fair value closer to US$69.00 or a price target of US$64.00. Comparing these stories side by side helps you decide how the current market price stacks up against the version of the future you find most realistic. For Stanley Black &amp; Decker, here are previews of two leading Stanley Black &amp; Decker Narratives: 🐂 Stanley Black &amp; Decker Bull Case Fair value in this bullish Narrative: about US$118.12 per share Implied discount to this fair value versus the last close of US$73.74: roughly 37.6% Assumed long term revenue growth: 5.25% a year <ul> <li>Expects cost savings, supply chain changes and localization to reset margins at higher levels than in recent years.</li> <li>Sees DEWALT, pro focused tools and digital solutions supporting market share gains and stronger revenue growth across regions.</li> <li>Assumes growing demand for home improvement, connected tools and new markets can support higher earnings and justify a higher valuation than today.</li> </ul> 🐻 Stanley Black &amp; Decker Bear Case Fair value in this bearish Narrative: about US$69.00 per share Implied premium to this fair value versus the last close of US$73.74: roughly 6.9% Assumed long term revenue growth: 2.08% a year <ul> <li>Highlights risks from aging populations, changing consumer preferences and rising competition that could weigh on long term tool demand.</li> <li>Points to supply chain costs, legacy obligations and commoditization as ongoing pressures on pricing power and profitability.</li> <li>Even with some margin improvement, expects only modest earnings growth and a lower P/E multiple to support a fair value below the current share price.</li> </ul> Together, these two Narratives bracket a reasonable range of outcomes, from a stronger recovery story to a more muted one, and offer a clear starting point to decide which set of assumptions is closer to how you see Stanley Black &amp; Decker. Curious how numbers become stories that shape markets? Explore Community Narratives Do you think there's more to the story for Stanley Black &amp; Decker? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9eda325c-7ba7-4e7f-9b2e-cd374c5420a2/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTEx?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9eda325c-7ba7-4e7f-9b2e-cd374c5420a2/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTEx"/><figcaption>NYSE:SWK 1-Year Stock Price Chart</figcaption></figure> 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.<div><h3>New: Manage All Your Stock Portfolios in One Place</h3>We've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free</div></div></div>

Stanley Black & Decker's stock closed at $73.74, reflecting a significant decline over various time frames, including a 4.8% drop over the past year. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 36.2%, with an estimated intrinsic value of $115.65 per share. Additionally, the company's P/E ratio of 28.49x is above industry averages, indicating it may be priced higher than peers. Overall, the analysis points to the stock being undervalued, prompting investors to reassess its potential.

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Is Stanley Black & Decker (SWK) Pricing Reflecting Its Recent Multi‑Year Share Price Weakness