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Watts Water Technologies, Inc (WTS) Fair Value & Analysis

Industrials · US · Market cap $11.8B

WW Watts Water Technologies, Inc logo Watts Water Technologies, Inc WTS · US
Price$383.05
Fair Value$233.65
Upside-39.0%
Quality68/100
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Healthy Growth
Solidly profitable · 14.3% net margin
Low debt · generates free cash flow
0.60% dividend yield
Mixed vs. peers (7/15)
Wide moat 69/100
Evidence: High Range $155.02 – $320.21 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from $194.83 to $233.65 (+19.9%) since Jul 12, 2026. Share price +9.4% over the past month.

A solid business, but screening 39% overvalued on our models.

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.
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Price vs Fair Value (5 years)

$392.23 $113.30 Fair Value $233.65 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $113.30 – $392.23 · fair‑value band $155.02 – $320.21 · the $383.05 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 13, 2026.

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Analysis

Watts Water Technologies, Inc (WTS) currently trades at $383.05, while our model-based Fair Value estimate is $233.65, implying the stock looks roughly 39.0% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: 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 13, 2026

Our scenario range runs from $155.02 (bear case) to $320.21 (bull case); at $383.05, 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 62% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -39%, WTS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Growth DCF $155.78 $225.05 $323.38 80
Residual Income $81.58 $107.07 $331.02 76
Rev-Margin DCF $127.56 $192.99 $267.46 74
All 24 models by family
DCF Models
FCF DCF $152.91 $230.44 $347.15 38
Owner Earnings $151.12 $227.69 $342.96 31
5Y Revenue Exit $127.56 $192.03 $272.94 39
5Y EBITDA Exit $166.56 $264.24 $376.90 41
5Y P/E Exit $171.03 $272.54 $377.80 38
10Y Revenue Exit $132.08 $192.79 $271.74 36
10Y EBITDA Exit $160.21 $242.65 $350.36 37
10Y P/E Exit $163.05 $248.38 $351.04 35
Earnings-Based
Graham-Dodd $84.35 $249.36 $329.90 54
Lynch FV $52.36 $74.80 $97.24 50
PEG = 1.0 $52.36 $74.80 $97.24 46
EPV $134.71 $155.90 $174.44 59
Multiples
P/E Multiple $195.37 $260.49 $325.61 63
P/S Multiple $133.13 $177.51 $221.89 58
P/B Multiple $158.15 $210.87 $263.59 55
EV/EBIT $226.51 $299.49 $372.47 53
EV/EBITDA $195.15 $257.68 $320.21 54
EV/Revenue $119.39 $167.32 $215.25 43
Asset-Based
NCAV (Graham) $36.90 $49.45 $73.80 50
Growth DCF
Growth DCF $155.78 $225.05 $323.38 80
Rev-Margin DCF $127.56 $192.99 $267.46 74
Economic Profit
Residual Income $81.58 $107.07 $331.02 76
ROIC Compounder $143.08 $178.01 $218.24 72
Growth Earnings
Growth-Adj P/E $158.74 $226.77 $294.80 68

Widest divergence: DCF Models ($230.44) versus Asset-Based ($49.45). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $2.6B
Revenue growth (YoY) +21.4%
Net margin 14.3%
Return on equity 18.9%
Free cash flow $356M FY2025
P/E ratio 31.9 as of Jul 12, 2026
More key figures
Operating margin 19.7%
EPS (TTM) $11.06
Dividend yield 0.6%
EPS growth (YoY) +34.5%
Net cash $208M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 68 · Market factors (momentum, volatility) 73

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 73
Price trend over the last 3–12 months (market factor)
52W Momentum 86
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.

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. 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. 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. 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%
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 pp

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

EBIT margin +8.5 pp
Tax rate +1.9 pp
Residual (interest, one-offs) +2.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

WTS screens 39% 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

Recent news

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

Peer Group

Specialty Industrial Machinery · 807 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 −39% · 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% · Below median
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

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.

VALUE 0 · sector 0
FUTURE 100 · sector 23
PAST 76 · sector 28
HEALTH 95 · sector 96
DIVIDEND 12 · sector 24

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

Insider activity: 40/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €899.80 €186.93 -79%
1SIE 1SIE €281.75 €91.93 -67%
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Atlas Copco AB ATCOA kr 210.00 kr 112.59 -46%
Sandvik AB SAND kr 358.60 kr 193.01 -46%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥39.17 ¥22.68 -42%
NARI Technology Co 600406 ¥24.06 ¥18.71 -22%
ABB India Limited ABB ₹7,700 ₹1,322 -83%
Cummins India Limited CUMMINSIND ₹5,315 ₹1,355 -75%
Bharat Heavy Electricals Limited BHEL ₹420.00 ₹96.51 -77%

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Frequently asked questions

Is Watts Water Technologies, Inc (WTS) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $233.65 versus a price of $383.05, about −39% (overvalued).
What is the fair value of WTS?
Our model-based fair value for Watts Water Technologies, Inc is $233.65 (as of Aug 13, 2026), built from audited fundamentals. The current price is $383.05.
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 13, 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 0.66% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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