Is Veralto (VLTO) Undervalued After Recent Share Price Dip? A Fresh Look at the Numbers

Veralto (VLTO) shares have edged down over the past week, nudging about 2% lower. Still, if you zoom out to the month or past 3 months, the overall performance paints a more balanced picture for investors tracking the stock.

See our latest analysis for Veralto.

Veralto’s one-year total shareholder return has slipped around 7.5%, but the stock has managed a positive climb since early spring. This suggests momentum is stabilizing after recent dips. This kind of price movement hints that investors are reassessing both risks and future growth prospects as the company continues to evolve.

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The real question for investors now is whether Veralto’s recent pullback signals an undervalued entry point, or if the company’s improving fundamentals are already reflected in its current price, leaving little room for upside.

Most Popular Narrative: 10% Undervalued

With Veralto recently closing at $104, the most popular narrative values its shares at $115.59. This suggests notable upside if narrative assumptions play out. This context puts the stock’s latest dip in an intriguing light, especially for investors seeking growth driven by technology and global trends.

Robust and accelerating demand for water reuse, analytics, and treatment solutions, driven by global water scarcity, rising regulatory pressure, and sustainability goals, is translating into strong volume sales growth across both industrial and municipal customers. This points to sustained revenue and margin expansion.

Read the complete narrative.

Want to know which bold growth assumptions could make this valuation a reality? The narrative builds its case on ambitious forward-looking numbers and a rapid shift toward high-margin recurring revenue. Can these trends really persist? Find out what’s behind the numbers that fuel this fair value call.

Result: Fair Value of $115.59 (UNDERVALUED)

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

However, persistent weakness in China and ongoing cost pressures from integrations or inflation could slow Veralto’s expected margin and profit growth in the coming years.

Find out about the key risks to this Veralto narrative.

Another View: What Do Earnings Multiples Say?

Looking at the company's price-to-earnings ratio brings a different perspective. Veralto trades at 28.9x earnings, which is higher than the US Commercial Services industry average of 27.6x. However, it is well below peers' average of 48.2x, and just above the fair ratio of 28.1x. This small gap suggests modest potential for the market to adjust, but it might also mean limited upside if investor appetite for high-growth multiples fades. Are investors overlooking risks, or is there a hidden edge here?

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

Build Your Own Veralto Narrative

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

A great starting point for your Veralto research is our analysis highlighting 3 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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