Flowserve (FLS): Examining Valuation After Recent Share Price Decline

Flowserve (FLS) shares edged slightly lower this week. Investors seem to be weighing recent performance trends, as the stock has slipped by 4% over the past month and is down nearly 8% since January.

See our latest analysis for Flowserve.

While Flowserve’s shares have trended lower lately, with a 1-year total shareholder return of -1.8%, those multi-year gains suggest the long-term narrative remains constructive. Recent momentum appears to be easing; however, the broader performance reflects solid past progress and an evolving risk outlook.

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With shares now trading at over a 32% discount to estimated intrinsic value and nearly 26% below the average analyst price target, investors may be wondering whether Flowserve is undervalued or if the market is already accounting for its future growth potential.

Most Popular Narrative: 20.6% Undervalued

Compared to Flowserve’s last close at $52.77, the most popular narrative places fair value firmly above the market price. This perspective is grounded in expectations for both transformational business trends and disciplined execution.

Robust growth in demand for flow control solutions in clean energy (hydrogen, carbon capture) and water infrastructure markets, as evidenced by record nuclear project bookings and expanding project funnels, positions Flowserve to capture new revenue streams aligned with global energy transition and water management initiatives. This may support multi-year top-line growth. The integration of Flowserve's RedRaven digital monitoring platform into Honeywell's Forge system, combined with increased customer focus on uptime and predictive maintenance, is expected to drive higher penetration of value-added digital solutions. This expansion into higher-margin, recurring aftermarket and service revenues could enhance net margins and earnings stability.

Read the complete narrative.

Want to know which bold growth levers are fueling this valuation call? The most intriguing piece is a future outlook powered by margin expansion and digital service breakthroughs. Curious how analysts model this trajectory and what turns Flowserve into a potential outlier? The full narrative breaks down the numbers that make this target possible.

Result: Fair Value of $66.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, project approval delays or challenges integrating recent acquisitions could affect Flowserve’s margin improvements and may slow expected earnings growth in the coming years.

Find out about the key risks to this Flowserve narrative.

Build Your Own Flowserve Narrative

Your perspective may differ, or you might prefer hands-on analysis. Dive into the data and craft a personal investment thesis in just minutes. Do it your way

A great starting point for your Flowserve research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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