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 ($37.28) is trading below our estimate of fair value ($43.88)

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 Ratio46.4x
EarningsUS$136.30m
Market CapUS$6.62b

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 Average38.1x
CSWI CSW Industrials
52.5x15.9%US$6.4b
AWI Armstrong World Industries
25.1x11.2%US$6.6b
AAON AAON
52.2x19.3%US$10.5b
SSD Simpson Manufacturing
22.5x9.4%US$7.5b
ZWS Zurn Elkay Water Solutions
46.4x17.1%US$6.6b

Price-To-Earnings vs Peers: ZWS is expensive based on its Price-To-Earnings Ratio (46.4x) compared to the peer average (38.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
ZWS 46.4xIndustry Avg. 22.0xNo. of Companies6PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZWS is expensive based on its Price-To-Earnings Ratio (46.4x) 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 Ratio46.4x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: ZWS is expensive based on its Price-To-Earnings Ratio (46.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).

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$37.28
US$39.43
+5.8%
4.5%US$43.00US$37.00n/a7
Dec ’25US$39.82
US$38.71
-2.8%
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$26.00US$39.827
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

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 07:53
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Zurn Elkay Water Solutions Corporation is covered by 20 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael HalloranBaird
Scott DavisBarclays
Charles BradyBMO Capital Markets Equity Research