Zurn Elkay Water Solutions Corporation

NYSE:ZWS Stock Report

Market Cap: US$6.6b

Zurn Elkay Water Solutions Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ZWS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZWS ($39.18) is trading below our estimate of fair value ($43.96)

Significantly Below Fair Value: ZWS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ZWS. This is calculated by dividing ZWS's market cap by their current earnings.
What is ZWS's PE Ratio?
PE Ratio48.8x
EarningsUS$136.30m
Market CapUS$6.60b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZWS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.6x
CSWI CSW Industrials
59.6x20.4%US$6.8b
AWI Armstrong World Industries
26.7x11.2%US$6.7b
AZEK AZEK
40.8x6.3%US$6.6b
SSD Simpson Manufacturing
23.5x8.9%US$7.6b
ZWS Zurn Elkay Water Solutions
48.8x15.4%US$6.6b

Price-To-Earnings vs Peers: ZWS is expensive based on its Price-To-Earnings Ratio (48.8x) compared to the peer average (37.6x).

Price to Earnings Ratio vs Industry

How does ZWS's PE Ratio compare vs other companies in the US Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AUVI.Q Applied UV
n/an/aUS$4.00
No more companies available in this PE range
ZWS 48.8xIndustry Avg. 21.7xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZWS is expensive based on its Price-To-Earnings Ratio (48.8x) compared to the US Building industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is ZWS'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.

ZWS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.8x
Fair PE Ratio22.7x

Price-To-Earnings vs Fair Ratio: ZWS is expensive based on its Price-To-Earnings Ratio (48.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).

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 ZWS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$39.18
US$38.71
-1.2%
6.1%US$43.00US$36.00n/a7
Nov ’25US$37.08
US$38.71
+4.4%
6.1%US$43.00US$36.00n/a7
Oct ’25US$35.79
US$36.29
+1.4%
8.0%US$41.00US$32.00n/a7
Sep ’25US$32.43
US$36.00
+11.0%
7.6%US$41.00US$32.00n/a7
Aug ’25US$31.32
US$36.00
+14.9%
7.6%US$41.00US$32.00n/a7
Jul ’25US$28.76
US$35.14
+22.2%
8.8%US$41.00US$31.00n/a7
Jun ’25US$31.31
US$35.29
+12.7%
8.8%US$41.00US$31.00n/a7
May ’25US$31.34
US$35.29
+12.6%
8.8%US$41.00US$31.00n/a7
Apr ’25US$33.12
US$35.00
+5.7%
8.8%US$40.00US$30.00n/a7
Mar ’25US$32.07
US$34.00
+6.0%
6.8%US$36.00US$30.00n/a6
Feb ’25US$30.26
US$30.50
+0.8%
9.0%US$34.00US$26.00n/a6
Jan ’25US$29.41
US$30.33
+3.1%
9.1%US$34.00US$26.00n/a6
Dec ’24US$29.87
US$30.43
+1.9%
8.4%US$34.00US$26.00n/a7
Nov ’24US$27.35
US$30.43
+11.3%
8.4%US$34.00US$26.00US$37.087
Oct ’24US$28.02
US$32.00
+14.2%
4.1%US$34.00US$30.00US$35.797
Sep ’24US$29.65
US$32.00
+7.9%
4.1%US$34.00US$30.00US$32.437
Aug ’24US$30.41
US$32.00
+5.2%
4.1%US$34.00US$30.00US$31.327
Jul ’24US$26.89
US$26.43
-1.7%
9.2%US$30.00US$23.00US$28.767
Jun ’24US$23.21
US$25.50
+9.9%
6.7%US$28.00US$23.00US$31.316
May ’24US$21.72
US$25.50
+17.4%
6.7%US$28.00US$23.00US$31.346
Apr ’24US$21.36
US$27.33
+28.0%
4.0%US$29.00US$26.00US$33.126
Mar ’24US$22.40
US$27.33
+22.0%
4.0%US$29.00US$26.00US$32.076
Feb ’24US$22.11
US$27.33
+23.6%
8.4%US$32.00US$25.00US$30.266
Jan ’24US$21.15
US$28.83
+36.3%
7.1%US$32.00US$26.00US$29.416
Dec ’23US$24.96
US$29.00
+16.2%
7.4%US$32.00US$26.00US$29.876
Nov ’23US$23.10
US$29.00
+25.5%
7.4%US$32.00US$26.00US$27.356

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

Discover undervalued companies

NFI Group

CA$1.8b

Manufactures and sells buses in North America, the United Kingdom, rest of Europe, and the Asia Pacific.

NFYE.F

CA$10.86

7D

-3.3%

1Y

7.9%

Stanley Black & Decker

US$13.2b

Provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Other Americas, Europe, and Asia.

SWK

US$86.58

7D

-4.0%

1Y

-5.4%

Mitsubishi

JP¥10.4t

Engages in the natural gas, industrial materials and infrastructure, chemicals, mineral resources, automotive and mobility, food and consumer industry, power solution, and urban development businesses worldwide.

MSBH.F

JP¥17.23

7D

-3.1%

1Y

7.7%