Pentair (PNR): Is There More Value Left After Recent Share Price Gains?

Pentair (PNR) has seen a steady climb in its stock, returning 12% over the past month and 18% in the past year. Investors are now watching what recent momentum could mean for the company’s next phase.

See our latest analysis for Pentair.

Pentair’s upward momentum is drawing notice, especially given the 1-year total shareholder return of 18% and a consistent share price gain since early this year. Recent positive sentiment suggests investors are increasingly optimistic about the company’s growth and underlying fundamentals.

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This recent rally raises a key question: is Pentair’s share price still leaving room for upside, or are investors already factoring in all expected growth and future gains? Is there a real opportunity left for buyers?

Most Popular Narrative: 2.9% Undervalued

Pentair’s last closing price of $112.05 sits just below the narrative’s fair value of $115.37, suggesting limited upside potential if projections hold true. The small discount implies the market is already pricing in much of the company’s anticipated growth. This sets the stage for a close examination of the assumptions behind this valuation.

Secular shifts toward stricter regulations on water quality and sustainability, alongside rising investments in ESG and resource-efficient water infrastructure, are increasing global demand for Pentair's advanced purification and filtration technologies. This supports future top-line and margin growth.

Read the complete narrative.

Want to know what’s really powering this price target? The story hinges upon high-margin products and expansion into a booming, tightly regulated market. Curious how bold profit and revenue forecasts shape this value? Find out what financial projections the narrative is betting everything on.

Result: Fair Value of $115.37 (UNDERVALUED)

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

However, persistent weakness in residential demand or tougher competition on pricing could present challenges for Pentair’s projected growth and put pressure on future profit margins.

Find out about the key risks to this Pentair narrative.

Another View: What Do Valuation Ratios Say?

Looking at how Pentair trades, its price-to-earnings ratio is 30.1 times. This means it is more expensive than both its industry average (24.5x), the peer average (22.6x), and even the market-implied fair ratio of 25.4x. This premium suggests that the market is already factoring in optimism, which could limit future returns if things do not play out perfectly. Is there potential for a correction, or will strong results justify paying more?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Pentair Narrative

If you see things differently or want to dig into the numbers your own way, you can shape your own perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Pentair.

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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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