What is LII's intrinsic value?

TickerWorth's blended fair value for Lennox International Inc. (LII) is $420.16 per share, versus a market price of $357.73 (priced within our range of $281.97 – $597.84).

Is LII overvalued or undervalued?

Priced within our range of $281.97 – $597.84 at $357.73. We don't call LII overvalued or undervalued from a range. This is an educational estimate, not advice.

What discount rate is used for LII?

A WACC of 10.3% and a terminal growth rate of 2.5%.

Is Lennox International stock undervalued?

TickerWorth's fair value for Lennox International Inc. (LII) is $420.16 against a market price of $357.73. Our read: Priced within our range of $281.97 – $597.84. This is a model estimate, not investment advice.

Lennox International (LII) DCF valuation and fair value

Our fair value for Lennox International Inc. (LII) is $420.16, built on a 10.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Lennox International stock?

Today's price implies revenue growth of 12.0% a year for 5 years; our model assumes 5.5% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $357.73. A model estimate, not investment advice.

Lennox International (LII) insider trading

The most recent insider filing (SEC Form 4) for Lennox International Inc. (LII): NORRIS JOHN W III, Director, gift on 2026-08-06. The latest filings are listed on this page. A disclosure, not a signal to trade.

LII · Intrinsic value

Is Lennox International Inc. (LII) overvalued or undervalued?

Name: Lennox International Inc. (LII) DCF intrinsic value
Creator: TickerWorth

Lennox International Inc. (LII) trades at the delayed market price of $357.73 a share. That price already implies revenue growth of 12.0% a year for 5 years. TickerWorth's fair value is $420.16 a share (priced within our range of $281.97 – $597.84). We do not call it over- or undervalued from inside our range.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full LII analysis

Is LII fairly valued?

Fair value: $420.16
Market price: $357.73
Upside to fair value: +17.5%
Verdict: Priced within our range of $281.97 – $597.84

Price as of 19 Oct 2026, 13:15 UTC · Prices are delayed.

Fair value against the delayed market price: Priced within our range of $281.97 – $597.84.

Reverse DCF: Today's price implies revenue growth of 12.0% a year for 5 years; our model assumes 5.5% a year on average over the same horizon.

What is LII's TickerWorth Score?

C47/100

Middle of the pack — real strengths and real weaknesses

Compared with Industrials companies in US

Its strongest point: a profitable, high-quality business. Its weakest: growth is slow or negative.

Value · 55 of 100
Cheaper than 55% of Industrials companies in US
Price vs worth · 64 of 100
Quality · 77 of 100
More profitable than 77% of Industrials companies in US
Financial health · 35 of 100
Financially stronger than 35% of Industrials companies in US
Growth · 16 of 100
Growing faster than 16% of Industrials companies in US
Momentum · 10 of 100
Outperformed 10% of Industrials companies in US over the past year

Confidence: High confidence · Scored 19 Oct 2026, 13:15 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

THE MODEL LANDS ~22% BELOW TODAY'S PRICE - NOT THE ~94% UNDERVALUATION THE AUTOMATIC MODEL SHOWS. At the house discount rate (5.24% + 1.163 x 5% = 11.06% cost of equity; WACC ~10.30%) and 2.5% perpetual growth, ~$0.7-1.0B a year of unlevered free cash flow is worth ~$11.6B of enterprise value; the market pays ~$14.2B (market cap ~$12.5B + net debt ~$1.75B), ~12.3x FY2025 EBITDA. Today's price needs a beta of ~0.83 (WACC ~8.8%), or ~12% revenue growth a year for five years at the 20.5% terminal margin, or a ~25% operating margin from 2027, or ~4.3% perpetual growth - above management's own 22-23% 2030 target. See what_market_believes.
TERMINAL VALUE IS ~71% OF ENTERPRISE VALUE - below the 75% line. Implied exit multiple ~8.8x 2030 EBITDA, against ~12.3x FY2025 EBITDA at today's price.
YEAR-1 FCF (~$708M unlevered) IS BELOW MANAGEMENT'S FY2026 FCF GUIDE ($750-850M, which is after ~$56M of after-tax interest, so ~$806-906M on an unlevered basis) - ~17% below the unlevered midpoint. Two reasons, both deliberate: the model charges 13% working capital on all of Year-1's revenue growth although ~5pt of it is acquired (bought with its working capital) and management expects an inventory RELEASE in 2026, and it adds back depreciation only, not the ~$25M of non-cash acquired-intangible amortization. Year 1 is ~11% above FY2025's reported $640.2M FCF, which was depressed by a $228M inventory build.
THE MARGIN IS AT A RECORD AND THE MODEL KEEPS IT THERE. Operating margin averaged ~13-14% in FY2016-22 and only reached 20% in 2025 on price/mix while volumes fell. The model holds ~20% and edges it to 20.5%. A fade back toward 16-17% (e.g. if R-454B pricing is competed away) would take the value well below this model's; management's 22-23% target would lift it. This is the largest operating judgement.
YEAR 1 IS ALREADY HALF REPORTED (H1 ended 2026-06-30), and the Q3 print is weeks away. The engine discounts all of FY2026 a full year while H1's cash already sits in the 2026-06-30 balance sheet; the two roughly offset.
YEAR-1 MARGIN IS DERIVED FROM EPS GUIDANCE, NOT GUIDED. The ~34.8M share count and ~$4M of pension/other expense inside the back-solve are mine; the 20% tax rate and ~$70M interest are management's.
SBC of $29.1M (0.56% of sales, FY2025) stays expensed inside EBIT; dilution is captured by the weighted diluted share count.

LII DCF valuation, input by input

TickerWorth's fair value for Lennox International Inc. (LII) is $420.16 a share, against the delayed market price of $357.73 (priced within our range of $281.97 – $597.84). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.

Read the full reasoning

One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values LII at about $281.97 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.

The valuation discounts Lennox International Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 10.3%, with a long-run terminal growth rate of 2.5%. About 71% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 12.0% annual revenue growth for LII. Our base case instead compounds to about 5.5% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, LII's modeled DCF value ranges from about $207.38 to $425.99 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Lennox International Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of LII's intrinsic value. Figures update as new filings and prices come in.

Every input behind LII's DCF

Input	Value	Source
Base-year revenueLennox FY2025 10-K (accession 0001069202-26-000028, filed 2026-02-17), calendar year ended 2025-12-31; Q4/FY2025 results 8-K Ex-99.1 (accession 0001069202-26-000005, 2026-01-28): Net sales $5,195.3M, -2.7% on FY2024's $5,341.3M (both restated for the Q4 2025 switch from LIFO to FIFO inventory accounting). Segments: Home Comfort Solutions (residential HVAC) $3,343.4M (64%, -7%) and Building Climate Solutions (commercial HVAC + refrigeration) $1,851.9M (36%, +5%). The decline is the R-454B refrigerant transition unwinding: 2024 carried a pre-buy of R-410A equipment before the 1 Jan 2025 manufacturing cutover, and 2025 carried channel destocking (Q4 2025 HCS revenue -21%). Includes ~one quarter of Duro Dyne and Supco (HVAC parts and supplies, acquired October 2025 for $545.0M net of cash). History (XBRL Revenues): $3,642M (FY2016), $3,634M (FY2020), $4,194M (2021), $4,718M (2022), $4,982M (2023), $5,341M (2024) - a ~4.0% ten-year CAGR. UNCHANGED as the base; the DCF grows it by forecast.revenue_growth. CROSS-CHECK, latest quarter (8-K Ex-99.1, 2026-07-29, accession 0001069202-26-000085): H1 2026 net sales $2,680.4M, +4.2% on H1 2025's $2,573.5M - HCS -8.4% ($1,585.6M; Q2 residential unit volumes -12%, Q1 -21%), BCS +29.9% ($1,094.8M; Q2 organic +15%, acquisitions +9pt). TTM to 2026-06-30: $5,302.2M.	$5,195,300,000	Lennox FY2025 10-K (accession 0001069202-26-000028, filed 2026-02-17), calendar year ended 2025-12-31; Q4/FY2025 results 8-K Ex-99.1 (accession 0001069202-26-000005, 2026-01-28): Net sales $5,195.3M, -2.7% on FY2024's $5,341.3M (both restated for the Q4 2025 switch from LIFO to FIFO inventory accounting). Segments: Home Comfort Solutions (residential HVAC) $3,343.4M (64%, -7%) and Building Climate Solutions (commercial HVAC + refrigeration) $1,851.9M (36%, +5%). The decline is the R-454B refrigerant transition unwinding: 2024 carried a pre-buy of R-410A equipment before the 1 Jan 2025 manufacturing cutover, and 2025 carried channel destocking (Q4 2025 HCS revenue -21%). Includes ~one quarter of Duro Dyne and Supco (HVAC parts and supplies, acquired October 2025 for $545.0M net of cash). History (XBRL Revenues): $3,642M (FY2016), $3,634M (FY2020), $4,194M (2021), $4,718M (2022), $4,982M (2023), $5,341M (2024) - a ~4.0% ten-year CAGR. UNCHANGED as the base; the DCF grows it by forecast.revenue_growth. CROSS-CHECK, latest quarter (8-K Ex-99.1, 2026-07-29, accession 0001069202-26-000085): H1 2026 net sales $2,680.4M, +4.2% on H1 2025's $2,573.5M - HCS -8.4% ($1,585.6M; Q2 residential unit volumes -12%, Q1 -21%), BCS +29.9% ($1,094.8M; Q2 organic +15%, acquisitions +9pt). TTM to 2026-06-30: $5,302.2M.
Base EBIT marginLennox Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0001069202-26-000005, filed 2026-01-28) + FY2025 10-K XBRL (us-gaap:OperatingIncomeLoss): GAAP operating income $1,041.5M / $5,195.3M = 20.05%. Includes $10.3M of Duro Dyne/Supco acquisition costs and $6.8M of restructuring (management's 'total segment profit', after corporate cost, was $1,057.7M = 20.4%). A RECORD, NOT A MID-CYCLE NUMBER: on the same XBRL tag the margin was 11.8% (FY2016), 12.9% (2017), 13.1% (2018), 17.3% (2019, lifted by a disposal gain), 13.2% (2020), 14.1% (2021), 13.9% (2022), 15.9% (2023), 19.5% (2024), 20.0% (2025). The 2023-25 step-up came from price and mix (the higher-priced R-454B product line, tariff and inflation pricing) and cost actions while volumes FELL ($255M volume headwind in FY2025 segment profit vs $356M of mix/price). The model treats ~20% as the new base, not the old 13-14% average - see the margin path. CROSS-CHECK, H1 2026 (8-K Ex-99.1, 2026-07-29): operating income $518.5M / $2,680.4M = 19.3% vs 20.1% in H1 2025; Q2 23.0% (-30bp) included $30M of one-off tariff refunds (~1.9pt of Q2 sales).	20.1%	Lennox Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0001069202-26-000005, filed 2026-01-28) + FY2025 10-K XBRL (us-gaap:OperatingIncomeLoss): GAAP operating income $1,041.5M / $5,195.3M = 20.05%. Includes $10.3M of Duro Dyne/Supco acquisition costs and $6.8M of restructuring (management's 'total segment profit', after corporate cost, was $1,057.7M = 20.4%). A RECORD, NOT A MID-CYCLE NUMBER: on the same XBRL tag the margin was 11.8% (FY2016), 12.9% (2017), 13.1% (2018), 17.3% (2019, lifted by a disposal gain), 13.2% (2020), 14.1% (2021), 13.9% (2022), 15.9% (2023), 19.5% (2024), 20.0% (2025). The 2023-25 step-up came from price and mix (the higher-priced R-454B product line, tariff and inflation pricing) and cost actions while volumes FELL ($255M volume headwind in FY2025 segment profit vs $356M of mix/price). The model treats ~20% as the new base, not the old 13-14% average - see the margin path. CROSS-CHECK, H1 2026 (8-K Ex-99.1, 2026-07-29): operating income $518.5M / $2,680.4M = 19.3% vs 20.1% in H1 2025; Q2 23.0% (-30bp) included $30M of one-off tariff refunds (~1.9pt of Q2 sales).
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	8% → 6% → 5% → 4% → 4%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run.
BetaYahoo Finance 5Y-monthly beta via yfinance, read 2026-10-05: Published 5Y-monthly beta 1.163, used AS IS - the same no-normalization policy as A. O. Smith (1.11) and Masco in this tracker. Plausible for an HVAC maker with ~64% of sales in residential equipment tied to housing turnover, consumer credit and refrigerant-rule cycles, and a share price that has fallen ~38% from its 52-week high. A 'mostly replacement demand' argument would push it lower. Each 0.1 of beta is worth roughly $19/share (1.063 gives ~$302; 1.263 ~$264); today's price needs a beta of ~0.83 (see what_market_believes).	1.16	Yahoo Finance 5Y-monthly beta via yfinance, read 2026-10-05: Published 5Y-monthly beta 1.163, used AS IS - the same no-normalization policy as A. O. Smith (1.11) and Masco in this tracker. Plausible for an HVAC maker with ~64% of sales in residential equipment tied to housing turnover, consumer credit and refrigerant-rule cycles, and a share price that has fallen ~38% from its 52-week high. A 'mostly replacement demand' argument would push it lower. Each 0.1 of beta is worth roughly $19/share (1.063 gives ~$302; 1.263 ~$264); today's price needs a beta of ~0.83 (see what_market_believes).
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with A. O. Smith, Pentair and every other model. Arguably mildly conservative for Lennox, whose sales compounded ~4.0% a year FY2016-25 and which keeps buying bolt-ons, and arguably generous for a company whose terminal-year margin is at a record. Must remain < WACC of ~10.30%.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with A. O. Smith, Pentair and every other model. Arguably mildly conservative for Lennox, whose sales compounded ~4.0% a year FY2016-25 and which keeps buying bolt-ons, and arguably generous for a company whose terminal-year margin is at a record. Must remain < WACC of ~10.30%.
Diluted sharesLennox Q2 2026 10-Q (accession 0001069202-26-000087), earnings-per-share note: Q2 2026 weighted-average diluted shares 34.8M (basic 34.7M + 0.1M dilutive awards; H1 34.9M; FY2025 35.4M; FY2016 ~44M). 34.56M were outstanding at 2026-06-30. The count falls ~1.5% a year: $482.3M of buybacks in FY2025 and $151.3M in H1 2026. Using the weighted Q2 count is the house rule and slightly conservative: 34.56M would add ~$2/share.	35M	Lennox Q2 2026 10-Q (accession 0001069202-26-000087), earnings-per-share note: Q2 2026 weighted-average diluted shares 34.8M (basic 34.7M + 0.1M dilutive awards; H1 34.9M; FY2025 35.4M; FY2016 ~44M). 34.56M were outstanding at 2026-06-30. The count falls ~1.5% a year: $482.3M of buybacks in FY2025 and $151.3M in H1 2026. Using the weighted Q2 count is the house rule and slightly conservative: 34.56M would add ~$2/share.
Market priceDelayed quote · as of 2026-10-19 13:15 UTC	$357.73	Delayed quote · as of 2026-10-19 13:15 UTC

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What does Lennox International Inc. do?

What does it do?

Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils, air handlers, and unit heaters under the Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Supco, Linebacker, Elite series, Merit Series, Comfort Sync, Healthy Climate, Healthy Climate Solutions, iComfort, ComfortSense, and Lennox Stores names. It operates in the Building Products & Equipment industry (Industrials sector), headquartered in United States. The company employs roughly 5,400 people.

How does it make money?

The business turns $5.3B in annual revenue into profit. Out of every $100 of sales, about $23 is left as operating profit (operating margin of 22.9%), after a 33% gross margin on the products/services it sells. After all costs, taxes and interest, 14.9% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks mixed: carries moderate debt (1.6× equity), comfortably covers its short-term bills (1.6× current ratio), and is currently profitable.

Who at LII filed insider trades?

Recent insider filings for Lennox International Inc.
Date	Insider	Relationship	What happened	Value	Filing
6 Aug 2026	NORRIS JOHN W III	Director	Gift	—	Form 4 for NORRIS JOHN W III (opens sec.gov in a new tab)
28 May 2026	NORRIS JOHN W III	Director	Gift	—	Form 4 for NORRIS JOHN W III (opens sec.gov in a new tab)
26 May 2026	Somasundaram Sivasankaran	Director	Disposition to issuer	—	Form 4 for Somasundaram Sivasankaran (opens sec.gov in a new tab)
21 May 2026	Buck Sherry	Director	Grant / award	—	Form 4 for Buck Sherry (opens sec.gov in a new tab)
21 May 2026	Quintos Karen H	Director	Grant / award	—	Form 4 for Quintos Karen H (opens sec.gov in a new tab)
21 May 2026	TESKE TODD J	Director	Grant / award	—	Form 4 for TESKE TODD J (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is LII's intrinsic value?
TickerWorth's blended fair value for Lennox International Inc. (LII) is $420.16 per share, versus a market price of $357.73 (priced within our range of $281.97 – $597.84).
Is LII overvalued or undervalued?
Priced within our range of $281.97 – $597.84 at $357.73. We don't call LII overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for LII?
A WACC of 10.3% and a terminal growth rate of 2.5%.
Is Lennox International stock undervalued?
TickerWorth's fair value for Lennox International Inc. (LII) is $420.16 against a market price of $357.73. Our read: Priced within our range of $281.97 – $597.84. This is a model estimate, not investment advice.
Lennox International (LII) DCF valuation and fair value
Our fair value for Lennox International Inc. (LII) is $420.16, built on a 10.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Lennox International stock?
Today's price implies revenue growth of 12.0% a year for 5 years; our model assumes 5.5% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $357.73. A model estimate, not investment advice.
Lennox International (LII) insider trading
The most recent insider filing (SEC Form 4) for Lennox International Inc. (LII): NORRIS JOHN W III, Director, gift on 2026-08-06. The latest filings are listed on this page. A disclosure, not a signal to trade.