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Zurn Elkay Water Solutions Corporation (ZWS) Fair Value & Analysis

Industrials · US · Market cap $8.1B · ISIN US98983L1089

What is Zurn Elkay Water Solutions Corporation really worth?

ZE Zurn Elkay Water Solutions Corporation logo Zurn Elkay Water Solutions Corporation ZWS · US
Price$47.62
Fair Value$24.92
Upside−47.7%
Quality72/100

A solid business, but trading 91% above our fair value of $24.92.

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Strengths

Solidly profitable · 12.3% net margin
Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +24.7 %/yr)
!Mixed vs. peers (6/14)
!Moderate moat 58/100
!Weak on dividend: 17 out of 100

For context

·0.84% dividend yield
Evidence: High Range $18.69 – $31.15

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Share price −10.5% over the past month.

What runs behind every stock

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

What matters now

  • A high-quality business (quality 72/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($31.15). The favourable scenario is already priced in.

Price vs Fair Value (5 years)

$53.18 $19.17 Fair Value $24.92 Jun 2021 Sep 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 $19.17 – $53.18 · fair‑value band $18.69 – $31.15 · the $47.62 price screens above the $24.92 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

Zurn Elkay Water Solutions Corporation (ZWS) currently trades at $47.62, while our model-based Fair Value estimate is $24.92, implying the stock looks roughly 91.1% overvalued today. The Quality Score stands at 72/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $33.03 per share, and 0 of the 26 models we run sit above the $47.62 price. Bear case: the Dividend Discount group reads lowest at $5.79, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Zurn Elkay Water Solutions Corporation generated revenue of $1.7B at a net margin of 12.3%. Revenue grew 11.4% year over year. It earns a return on equity of 13.3%. Net debt stands at $280M. Fundamentals as of Aug 13, 2026

Our scenario range runs from $18.69 (bear case) to $31.15 (bull case); at $47.62, 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 about 11% below its 52-week high and 37% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −31% fair-value upside, at −48%, ZWS screens richer 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 $0.5617 per share, which is 2.3 % 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 $22.62 $42.12 $75.59 77
Growth DCF $22.27 $39.63 $68.07 76
EPV $11.07 $13.00 $14.67 74
All 26 models by family
DCF Models
FCF DCF $22.62 $42.12 $75.59 77
Owner Earnings $18.12 $33.95 $61.09 73
5Y Revenue Exit $15.17 $26.11 $40.81 71
5Y EBITDA Exit $20.35 $36.98 $57.98 73
5Y P/E Exit $18.26 $32.60 $49.09 69
10Y Revenue Exit $17.10 $28.33 $45.36 65
10Y EBITDA Exit $20.91 $36.20 $59.66 66
10Y P/E Exit $19.54 $33.03 $52.26 62
Earnings-Based
Graham-Dodd $8.07 $39.84 $54.94 64
Lynch FV $10.73 $15.33 $19.93 61
PEG = 1.0 $10.73 $15.33 $19.93 57
EPV $11.07 $13.00 $14.67 74
Dividend Discount
Gordon GGM $3.36 $6.70 $10.15 67
DDM Multi-Stage $3.36 $5.79 $7.07 67
Multiples
P/E Multiple $18.69 $24.92 $31.15 63
P/S Multiple $15.13 $20.17 $25.21 58
P/B Multiple $15.13 $20.17 $25.21 55
EV/EBIT $20.87 $28.22 $35.57 66
EV/EBITDA $20.87 $28.22 $35.56 67
EV/Revenue $11.64 $17.12 $22.61 53
Asset-Based
NCAV (Graham) $4.80 $6.44 $9.61 54
Growth DCF
Growth DCF $22.27 $39.63 $68.07 76
Rev-Margin DCF $15.17 $25.97 $40.23 71
Economic Profit
Residual Income $8.84 $10.43 $20.46 72
ROIC Compounder $11.79 $16.33 $21.70 71
Growth Earnings
Growth-Adj P/E $16.51 $23.58 $30.65 67

Widest divergence: DCF Models ($33.03) versus Dividend Discount ($5.79). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 38.6
P/S ratio 4.50 P/E × margin
EPS (TTM) $1.23 price ÷ EPS = P/E 38.6
Dividend yield 0.8% payout 32.5%
Net margin 11.7% FY2025
Return on equity 13.3% TTM
More key figures
Profitability
Return on assets (EBIT) 8.2% avg 5y
Operating margin 19.1% TTM
Growth
Revenue (TTM) $1.7B TTM
Revenue growth (YoY) +11.4% 3y avg +9.8%
EPS growth (YoY) +37.2%
Balance sheet & cash flow
Free cash flow $317M FY2025
Net debt $280M FY2025 · ≈ 0.9 yrs of FCF

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

Quality Score breakdown

Overall quality 72/100

Of which business quality 70 · Market factors (momentum, volatility) 56

Profitability 49
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 82
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 54
Distance to the 52-week high (market factor)
Net Issuance 73
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

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally.

Full company description

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water dispensing and filtration products, such as filtered bottle filling stations, water fountains and water dispensers, and filtered faucets under the Elkay and Halsey Taylor brand names; filtered units including water filters; and water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, and thermostatic mixing valves under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, and chemical drainage systems; and oil and grease interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn, Green Turtle, and Wade brands. In addition, it offers sensor operated flush valves under the Aquaflush, AquaSense, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; flush valves and faucets under the Hydro X Power brands; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel, quartz, fireclay-ceramic, and cast iron sinks under the Elkay brand name; stainless steel sinks and plumbing fixtures under the Just brand; restroom partition systems and lockers under the Hadrian brand name; and hand dryers. Further, the company offers its products to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was founded in 1900 and is headquartered in Milwaukee, Wisconsin.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zurn Elkay Water Solutions Corporation reported revenue of $1.7B in FY2025 versus $911M in FY2021, a compound +16.8%/yr. Reported net income was $198M in FY2025, compounding +13.1%/yr from FY2021.

Growth Quality 92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$1.7B
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.
+9.8%
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.
+24.7%
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.
+7.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+5.0% (4.2 + 0.8)
Revenue +16.8%/yr
FY21 $911M
FY22 $1.3B
FY23 $1.5B
FY24 $1.6B
FY25 $1.7B
Net income +13.1%/yr
FY21 $121M
FY22 $61.7M
FY23 $113M
FY24 $160M
FY25 $198M
Character of growth · EPS growth decomposed (2014-2025) +2.5 % p.a.
Revenue per share −7.3 %

of which total revenue −1.9 % · buybacks/dilution −5.6 %

EBIT margin +4.4 %
Tax rate −0.9 %
Residual (interest, one-offs) +6.9 %

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).

ZWS screens 91% overvalued. Compare with Veralto Corporation →

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Cite: Fair Value Calculator (2026). "Zurn Elkay Water Solutions Corporation Fair Value". https://www.fairvalue-calculator.com/stock/ZWS

Recent news

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

Peer Group

Pollution & Treatment Controls · 93 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 72 · Top 25%
Fair Value upside −48% · Below median
Return on equity (TTM) 13% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.31× · Higher than 75% of peers

Valuation Multiples vs Pollution & Treatment Controls median · lower = cheaper

P/E (TTM) 38.6× · Pricier than median
P/B 5.07× · Pricier than 75% of peers
P/S (TTM) 4.67× · Pricier than 75% of peers
P/FCF 25.7× · Pricier than 75% of peers
EV/EBITDA 21.2× · Pricier than median

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
FUTURE57 · sector 7
PAST53 · sector 18
HEALTH85 · sector 95
DIVIDEND17 · sector 43

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

Similar stocks

10 more Pollution & Treatment Controls stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Veralto Corporation VLTO $97.68 $67.62 −31%
Canmax Technologies Co 300390 ¥61.99 ¥10.07 −84%
CECO Environmental Corp CECO $79.59 $15.19 −81%
Fujian Longking Co 600388 ¥17.41 ¥15.59 −10%
Munters Group MTRS kr 183.90 kr 48.58 −74%
China Conch Venture Holdings 0586 HK$8.50 HK$10.70 +26%
Mega Union Technology Inc 6944 716.00 TWD 415.06 TWD −42%
MayAir Technology (China) Co 688376 ¥71.82 ¥18.80 −74%
Jingjin Equipment Inc 603279 ¥12.41 ¥18.97 +53%
Zhongyuan Environmental Protection Co 000544 ¥7.33 ¥13.38 +83%

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Frequently asked questions

Is Zurn Elkay Water Solutions Corporation (ZWS) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $24.92 versus a price of $47.62, about −48% upside (overvalued).
What is the fair value of ZWS?
Our model-based fair value for Zurn Elkay Water Solutions Corporation is $24.92 (as of Aug 13, 2026), built from audited fundamentals. The current price: $47.62.
What is the quality score of ZWS?
Zurn Elkay Water Solutions Corporation has a Quality Score of 72/100. 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 Zurn Elkay Water Solutions Corporation (ZWS)?
Zurn Elkay Water Solutions Corporation reported trailing-twelve-month revenue of about $1.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of ZWS?
The net profit margin of Zurn Elkay Water Solutions Corporation is about 12.3%, meaning it keeps roughly 12.3% of revenue as net income. Based on the latest reported figures.
Does Zurn Elkay Water Solutions Corporation pay a dividend?
Zurn Elkay Water Solutions Corporation currently shows a dividend yield of about 0.84% relative to its recent price (as of Aug 13, 2026).
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