VLTO Valuation

Veralto Corp

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106.690

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

VLTO Relative Valuation

VLTO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VLTO is overvalued; if below, it's undervalued.

Historical Valuation

Veralto Corp (VLTO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 27.13 is considered Undervalued compared with the five-year average of 26.92. The fair price of Veralto Corp (VLTO) is between 115.22 to 131.54 according to relative valuation methord. Compared to the current price of 106.69 USD , Veralto Corp is Undervalued By 7.4%.

Relative Value

Fair Zone

115.22-131.54

Current Price：106.69

7.4%

Undervalued

27.13

Trailing

Forward

19.44

EV/EBITDA

Veralto Corp. (VLTO) has a current EV/EBITDA of 19.44. The 5-year average EV/EBITDA is 19.06. The thresholds are as follows: Strongly Undervalued below 15.60, Undervalued between 15.60 and 17.33, Fairly Valued between 20.79 and 17.33, Overvalued between 20.79 and 22.52, and Strongly Overvalued above 22.52. The current Forward EV/EBITDA of 19.44 falls within the Historic Trend Line -Fairly Valued range.

20.09

EV/EBIT

Veralto Corp. (VLTO) has a current EV/EBIT of 20.09. The 5-year average EV/EBIT is 19.77. The thresholds are as follows: Strongly Undervalued below 16.30, Undervalued between 16.30 and 18.04, Fairly Valued between 21.51 and 18.04, Overvalued between 21.51 and 23.24, and Strongly Overvalued above 23.24. The current Forward EV/EBIT of 20.09 falls within the Historic Trend Line -Fairly Valued range.

4.70

Veralto Corp. (VLTO) has a current PS of 4.70. The 5-year average PS is 4.43. The thresholds are as follows: Strongly Undervalued below 3.46, Undervalued between 3.46 and 3.95, Fairly Valued between 4.91 and 3.95, Overvalued between 4.91 and 5.40, and Strongly Overvalued above 5.40. The current Forward PS of 4.70 falls within the Historic Trend Line -Fairly Valued range.

26.41

P/OCF

Veralto Corp. (VLTO) has a current P/OCF of 26.41. The 5-year average P/OCF is 25.25. The thresholds are as follows: Strongly Undervalued below 18.80, Undervalued between 18.80 and 22.02, Fairly Valued between 28.48 and 22.02, Overvalued between 28.48 and 31.71, and Strongly Overvalued above 31.71. The current Forward P/OCF of 26.41 falls within the Historic Trend Line -Fairly Valued range.

28.20

P/FCF

Veralto Corp. (VLTO) has a current P/FCF of 28.20. The 5-year average P/FCF is 26.58. The thresholds are as follows: Strongly Undervalued below 22.13, Undervalued between 22.13 and 24.35, Fairly Valued between 28.80 and 24.35, Overvalued between 28.80 and 31.02, and Strongly Overvalued above 31.02. The current Forward P/FCF of 28.20 falls within the Historic Trend Line -Fairly Valued range.

Veralto Corp (VLTO) has a current Price-to-Book (P/B) ratio of 10.03. Compared to its 3-year average P/B ratio of 14.14 , the current P/B ratio is approximately -29.07% higher. Relative to its 5-year average P/B ratio of 14.14, the current P/B ratio is about -29.07% higher. Veralto Corp (VLTO) has a Forward Free Cash Flow (FCF) yield of approximately 3.54%. Compared to its 3-year average FCF yield of 3.78%, the current FCF yield is approximately -6.34% lower. Relative to its 5-year average FCF yield of 3.78% , the current FCF yield is about -6.34% lower.

10.03

P/B

Median3y

14.14

Median5y

14.14

3.54

FCF Yield

Median3y

3.78

Median5y

3.78

Competitors Valuation Multiple

The average P/S ratio for VLTO's competitors is 2.87, providing a benchmark for relative valuation. Veralto Corp Corp (VLTO) exhibits a P/S ratio of 4.70, which is 63.89% above the industry average. Given its robust revenue growth of 6.44%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Lennox International Inc

3.67

3.43%

21.08B

Performance Decomposition

Market capitalization of VLTO decreased by 5.03% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.29B to 1.37B.

The secondary factor is the Margin Expansion, contributed 2.73%to the performance.

Overall, the performance of VLTO in the past 1 year is driven by Revenue Growth. Which is more sustainable.

6.44%

1.29B → 1.37B

Revenue Growth

2.73%

15.76 → 16.19

Margin Expansion

-14.20%

34.93 → 29.97

P/E Change

-5.03%