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Watts Water Technologies Inc (WTS) Fair Value & Analysis

Industrials · US · Market cap $11.8B · ISIN US9427491025

What is Watts Water Technologies Inc really worth?

WW Watts Water Technologies Inc logo Watts Water Technologies Inc WTS · US
Price$355.53
Fair Value$233.65
Upside−34.3%
Quality68/100

A solid business, but trading 52% above our fair value of $233.65.

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Strengths

Healthy Growth (revenue 5y +10.1 %/yr)
Solidly profitable · 14.3% net margin
Low debt · generates free cash flow
Wide moat 69/100

Risks

!Mixed vs. peers (7/15)
!Weak on dividend: 12 out of 100

For context

·0.59% dividend yield
Evidence: High Range $155.02 – $320.21

Fair value as of: Aug 31, 2026

From 24 valuation models · updated 5 days ago

Share price −0.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($320.21). The favourable scenario is already priced in.
  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($155.02 to $320.21) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$392.23 $113.30 Fair Value $233.65 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range $113.30 – $392.23 · fair‑value band $155.02 – $320.21 · the $355.53 price screens above the $233.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Watts Water Technologies Inc (WTS) currently trades at $355.53, while our model-based Fair Value estimate is $233.65, implying the stock looks roughly 52.2% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $188.99 per share, and 0 of the 24 models we run sit above the $355.53 price. Bear case: the Asset-Based group reads lowest at $40.55, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Watts Water Technologies Inc generated revenue of $2.6B at a net margin of 14.3%. Revenue grew 21.4% year over year. It earns a return on equity of 18.9%. The balance sheet holds a net cash position of $208M. Fundamentals as of Aug 31, 2026

Our scenario range runs from $155.02 (bear case) to $320.21 (bull case); at $355.53, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 51% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −34%, WTS screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $6.08 per share, which is 2.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $125.41 $188.99 $284.71 79
Growth DCF $127.76 $184.58 $265.21 77
Owner Earnings $123.94 $186.73 $281.27 75
All 24 models by family
DCF Models
FCF DCF best evidence $125.41 $188.99 $284.71 79
Owner Earnings $123.94 $186.73 $281.27 75
5Y Revenue Exit $104.62 $157.49 $223.84 72
5Y EBITDA Exit $136.60 $216.72 $309.11 74
5Y P/E Exit $140.27 $223.52 $309.85 70
10Y Revenue Exit $108.32 $158.11 $222.87 66
10Y EBITDA Exit $131.39 $199.01 $287.35 67
10Y P/E Exit $133.72 $203.70 $287.90 63
Earnings-Based
Graham-Dodd $69.18 $204.51 $270.56 62
Lynch FV $42.94 $61.34 $79.75 58
PEG = 1.0 $42.94 $61.34 $79.75 55
EPV $110.48 $127.86 $143.07 72
Multiples
P/E Multiple $160.23 $213.64 $267.04 61
P/S Multiple $109.19 $145.58 $181.98 56
P/B Multiple $129.71 $172.94 $216.18 53
EV/EBIT $185.77 $245.62 $305.48 65
EV/EBITDA $160.05 $211.33 $262.61 66
EV/Revenue $97.92 $137.23 $176.53 52
Asset-Based
NCAV (Graham) $30.26 $40.55 $60.53 52
Growth DCF
Growth DCF $127.76 $184.58 $265.21 77
Rev-Margin DCF $104.62 $158.28 $219.35 72
Economic Profit
Residual Income $66.90 $87.81 $271.49 64
ROIC Compounder $117.35 $145.99 $178.99 71
Growth Earnings
Growth-Adj P/E $130.19 $185.98 $241.78 66

Widest divergence: DCF Models ($188.99) versus Asset-Based ($40.55). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 31.9 as of Jul 12, 2026
P/S ratio 4.45 P/E × margin
EPS (TTM) $11.06 price ÷ EPS = P/E 31.9
Dividend yield 0.6% payout 18.8%
Net margin 14.0% FY2025
Return on equity 18.9% TTM
More key figures
Profitability
Return on assets (EBIT) 15.4% avg 5y
Operating margin 19.7% TTM
Growth
Revenue (TTM) $2.6B TTM
Revenue growth (YoY) +21.4% 3y avg +7.2%
EPS growth (YoY) +34.5%
Balance sheet & cash flow
Free cash flow $356M FY2025
Net cash $208M FY2025

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 68 · Market factors (momentum, volatility) 65

Profitability 67
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets.

Full company description

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications for commercial, marine, and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts in the Americas, Europe, Asia-Pacific, Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Watts Water Technologies Inc reported revenue of $2.4B in FY2025 versus $1.8B in FY2021, a compound +7.7%/yr. Reported net income was $341M in FY2025, compounding +19.8%/yr from FY2021.

Growth Quality 91/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$2.4B
Latest YoY
+8.3%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.1%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+22.6% (22.0 + 0.6)
Revenue +7.7%/yr
FY21 $1.8B
FY22 $2.0B
FY23 $2.1B
FY24 $2.3B
FY25 $2.4B
Net income +19.8%/yr
FY21 $166M
FY22 $252M
FY23 $262M
FY24 $291M
FY25 $341M
Character of growth · EPS growth decomposed (2014-2025) +18.5 % p.a.
Revenue per share +5.4 %

of which total revenue +4.9 % · buybacks/dilution +0.5 %

EBIT margin +8.5 %
Tax rate +1.9 %
Residual (interest, one-offs) +1.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

WTS screens 52% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Watts Water Technologies Inc Fair Value". https://www.fairvalue-calculator.com/stock/WTS

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 792 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 68 · Top 25%
Fair Value upside −34% · Above median
Return on equity (TTM) 19% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth 21% · Top 25%
Dividend yield (TTM) 0.6% · Bottom 25%
Debt / equity 0.10× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 31.9× · Pricier than median
P/B 5.80× · Pricier than 75% of peers
P/S (TTM) 4.60× · Pricier than 75% of peers
P/FCF 33.0× · Pricier than 75% of peers
EV/EBITDA 20.7× · Pricier than median
PEG 3.84× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 21
PAST76 · sector 28
HEALTH95 · sector 96
DIVIDEND12 · sector 27

VALUE 0: the price sits above our fair-value range.

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc GEV $941.84 $131.95 −86%
SIE SIE €289.85 €139.77 −52%
Eaton Corporation ETN $402.78 $168.65 −58%
Parker-Hannifin Corporation PH $995.02 $398.69 −60%
Atlas Copco AB ATCOA kr 206.60 kr 112.59 −46%
Cummins Inc CMI $564.40 $348.94 −38%
Illinois Tool Works Inc ITW $281.67 $145.84 −48%
Emerson Electric Co EMR $155.18 $58.44 −62%
AMETEK, Inc AME $236.25 $125.80 −47%
Rockwell Automation, Inc ROK $417.53 $125.76 −70%

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Frequently asked questions

Is Watts Water Technologies Inc (WTS) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of $233.65 versus a price of $355.53, about −34% upside (overvalued).
What is the fair value of WTS?
Our model-based fair value for Watts Water Technologies Inc is $233.65 (as of Aug 31, 2026), built from audited fundamentals. The current price: $355.53.
What is the quality score of WTS?
Watts Water Technologies Inc has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Watts Water Technologies Inc (WTS)?
Watts Water Technologies Inc reported trailing-twelve-month revenue of about $2.6B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of WTS?
The net profit margin of Watts Water Technologies Inc is about 14.3%, meaning it keeps roughly 14.3% of revenue as net income. Based on the latest reported figures.
Does Watts Water Technologies Inc pay a dividend?
Watts Water Technologies Inc currently shows a dividend yield of about 0.59% relative to its recent price (as of Aug 31, 2026).
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