Watts Water Technologies, Inc.

NYSE:WTS Stock Report

Mkt Cap: US$5.1b

We’ve recently updated our valuation analysis.

Watts Water Technologies Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WTS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA14.2x
PEG Ratio62.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average43x
GTLS Chart Industries
69.5x41.3%US$5.3b
AQUA Evoqua Water Technologies
69.3x19.1%US$5.0b
TKR Timken
15x14.4%US$5.6b
CR Crane Holdings
18.1x9.4%US$6.1b
WTS Watts Water Technologies
23x0.4%US$5.1b

Price-To-Earnings vs Peers: WTS is good value based on its Price-To-Earnings Ratio (23x) compared to the peer average (43x).


Price to Earnings Ratio vs Industry

How does WTS's PE Ratio compare vs other companies in the US Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.1%
n/an/an/a

Price-To-Earnings vs Industry: WTS is expensive based on its Price-To-Earnings Ratio (23x) compared to the US Machinery industry average (22.7x)


Price to Earnings Ratio vs Fair Ratio

What is WTS'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.

WTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23x
Fair PE Ratio14.8x

Price-To-Earnings vs Fair Ratio: WTS is expensive based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).


Share Price vs Fair Value

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

Below Fair Value: WTS ($153.86) is trading above our estimate of fair value ($111.8)

Significantly Below Fair Value: WTS is trading above our estimate of fair value.


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 WTS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$153.87
US$142.00
-7.7%
8.0%US$151.00US$120.00n/a5
Jan ’24US$146.23
US$141.40
-3.3%
8.2%US$155.00US$120.00n/a5
Dec ’23US$158.92
US$140.00
-11.9%
8.2%US$155.00US$120.00n/a5
Nov ’23US$146.48
US$135.80
-7.3%
8.5%US$150.00US$120.00n/a5
Oct ’23US$125.73
US$148.20
+17.9%
16.4%US$192.00US$120.00n/a5
Sep ’23US$138.44
US$148.20
+7.0%
16.4%US$192.00US$120.00n/a5
Aug ’23US$139.19
US$126.50
-9.1%
3.1%US$130.00US$120.00n/a4
Jul ’23US$124.33
US$135.75
+9.2%
6.9%US$144.00US$120.00n/a4
Jun ’23US$132.18
US$138.25
+4.6%
3.8%US$144.00US$130.00n/a4
May ’23US$127.46
US$143.25
+12.4%
5.3%US$148.00US$130.00n/a4
Apr ’23US$140.16
US$150.50
+7.4%
8.8%US$165.00US$130.00n/a4
Mar ’23US$142.96
US$162.50
+13.7%
1.9%US$166.00US$159.00n/a4
Feb ’23US$156.65
US$188.50
+20.3%
10.3%US$213.00US$160.00n/a4
Jan ’23US$194.17
US$190.25
-2.0%
10.1%US$213.00US$160.00US$146.234
Dec ’22US$185.58
US$180.75
-2.6%
17.0%US$213.00US$130.00US$158.924
Nov ’22US$192.68
US$154.00
-20.1%
10.3%US$174.00US$130.00US$146.484
Oct ’22US$170.54
US$153.25
-10.1%
10.2%US$174.00US$130.00US$125.734
Sep ’22US$169.70
US$153.25
-9.7%
10.2%US$174.00US$130.00US$138.444
Aug ’22US$150.76
US$135.00
-10.5%
6.8%US$145.00US$120.00US$139.194
Jul ’22US$146.32
US$127.50
-12.9%
5.7%US$139.00US$120.00US$124.334
Jun ’22US$138.66
US$127.50
-8.0%
5.7%US$139.00US$120.00US$132.184
May ’22US$124.55
US$110.00
-11.7%
17.4%US$128.00US$80.00US$127.464
Apr ’22US$120.56
US$109.50
-9.2%
17.0%US$126.00US$80.00US$140.164
Mar ’22US$115.84
US$109.50
-5.5%
17.0%US$126.00US$80.00US$142.964
Feb ’22US$123.79
US$106.75
-13.8%
18.0%US$125.00US$80.00US$156.654
Jan ’22US$121.70
US$104.50
-14.1%
16.5%US$124.00US$80.00US$194.174

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


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