Watts Water Technologies, Inc.

DB:W3W Stock Report

Market Cap: €6.8b

Watts Water Technologies Valuation

Is W3W undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of W3W when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: W3W (€202) is trading below our estimate of fair value (€270.3)

Significantly Below Fair Value: W3W is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for W3W?

Key metric: As W3W is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for W3W. This is calculated by dividing W3W's market cap by their current earnings.
What is W3W's PE Ratio?
PE Ratio26.1x
EarningsUS$279.30m
Market CapUS$7.17b

Price to Earnings Ratio vs Peers

How does W3W's PE Ratio compare to its peers?

The above table shows the PE ratio for W3W vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.8x
G1A GEA Group
19.1x8.3%€7.8b
RAA RATIONAL
43.4x6.9%€10.2b
GIL DMG MORI
22xn/a€3.5b
KRN Krones
14.8x16.2%€3.7b
W3W Watts Water Technologies
26.1x6.4%€7.2b

Price-To-Earnings vs Peers: W3W is expensive based on its Price-To-Earnings Ratio (26.1x) compared to the peer average (24.8x).

Price to Earnings Ratio vs Industry

How does W3W's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
W3W 26.1xIndustry Avg. 14.8xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: W3W is expensive based on its Price-To-Earnings Ratio (26.1x) compared to the German Machinery industry average (14.7x).

Price to Earnings Ratio vs Fair Ratio

What is W3W's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

W3W PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.1x
Fair PE Ratio15.3x

Price-To-Earnings vs Fair Ratio: W3W is expensive based on its Price-To-Earnings Ratio (26.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst W3W forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€202.00
€184.98
-8.4%
8.0%€206.87€160.90n/a5
Nov ’25€178.00
€180.18
+1.2%
6.3%€191.02€161.49n/a4
Oct ’25€183.00
€172.82
-5.6%
5.5%€181.11€156.91n/a4
Sep ’25€176.00
€172.82
-1.8%
5.5%€181.11€156.91n/a4
Aug ’25€187.00
€187.91
+0.5%
9.2%€205.74€160.02n/a4
Jul ’25€172.00
€189.52
+10.2%
8.9%€209.54€162.98n/a4
Jun ’25€180.00
€191.21
+6.2%
9.1%€208.85€162.44n/a4
May ’25€185.00
€191.36
+3.4%
8.1%€204.31€164.76n/a4
Apr ’25€196.00
€189.09
-3.5%
7.6%€200.55€161.74n/a5
Mar ’25€188.00
€189.09
+0.6%
7.6%€200.55€161.74n/a5
Feb ’25€185.00
€177.65
-4.0%
7.0%€197.69€159.43n/a5
Jan ’25€187.00
€177.65
-5.0%
7.0%€197.69€159.43n/a5
Dec ’24€174.00
€174.79
+0.5%
6.2%€184.67€153.90n/a5
Nov ’24€164.00
€174.92
+6.7%
5.4%€181.54€156.01€178.005
Oct ’24€163.00
€172.31
+5.7%
5.5%€178.64€153.52€183.005
Sep ’24€174.00
€167.38
-3.8%
6.6%€174.47€145.39€176.005
Aug ’24€168.00
€153.74
-8.5%
4.1%€162.49€142.85€187.005
Jul ’24€168.00
€158.58
-5.6%
3.5%€163.96€148.21€172.005
Jun ’24€149.00
€150.15
+0.8%
10.7%€160.88€118.16€180.005
May ’24€146.00
€152.26
+4.3%
11.1%€165.10€119.24€185.005
Apr ’24€154.00
€152.68
-0.9%
13.6%€167.58€111.72€196.005
Mar ’24€162.00
€152.68
-5.8%
13.6%€167.58€111.72€188.005
Feb ’24€151.00
€130.87
-13.3%
8.0%€138.97€110.44€185.005
Jan ’24€137.00
€133.31
-2.7%
8.2%€146.13€113.14€187.005
Dec ’23€152.00
€140.52
-7.6%
8.2%€155.57€120.44€174.005
Nov ’23€146.00
€139.00
-4.8%
8.5%€153.54€122.83€164.005

Analyst Forecast: Target price is lower than the current share price.

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