WAT Relative Valuation
WAT'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, WAT is overvalued; if below, it's undervalued.
Historical Valuation
Waters Corp (WAT) is now in the Fair zone, suggesting that its current forward PE ratio of 28.54 is considered Fairly compared with the five-year average of 26.92. The fair price of Waters Corp (WAT) is between 352.31 to 435.29 according to relative valuation methord.
Relative Value
Fair Zone
352.31-435.29
Current Price：397.62
Fair
28.54
PE
1Y
3Y
5Y
Trailing
Forward
20.48
EV/EBITDA
Waters Corp. (WAT) has a current EV/EBITDA of 20.48. The 5-year average EV/EBITDA is 19.77. The thresholds are as follows: Strongly Undervalued below 14.52, Undervalued between 14.52 and 17.14, Fairly Valued between 22.39 and 17.14, Overvalued between 22.39 and 25.01, and Strongly Overvalued above 25.01. The current Forward EV/EBITDA of 20.48 falls within the Historic Trend Line -Fairly Valued range.
23.96
EV/EBIT
Waters Corp. (WAT) has a current EV/EBIT of 23.96. The 5-year average EV/EBIT is 22.83. The thresholds are as follows: Strongly Undervalued below 16.69, Undervalued between 16.69 and 19.76, Fairly Valued between 25.91 and 19.76, Overvalued between 25.91 and 28.98, and Strongly Overvalued above 28.98. The current Forward EV/EBIT of 23.96 falls within the Historic Trend Line -Fairly Valued range.
7.19
PS
Waters Corp. (WAT) has a current PS of 7.19. The 5-year average PS is 6.52. The thresholds are as follows: Strongly Undervalued below 4.74, Undervalued between 4.74 and 5.63, Fairly Valued between 7.40 and 5.63, Overvalued between 7.40 and 8.29, and Strongly Overvalued above 8.29. The current Forward PS of 7.19 falls within the Historic Trend Line -Fairly Valued range.
25.25
P/OCF
Waters Corp. (WAT) has a current P/OCF of 25.25. The 5-year average P/OCF is 23.08. The thresholds are as follows: Strongly Undervalued below 15.98, Undervalued between 15.98 and 19.53, Fairly Valued between 26.62 and 19.53, Overvalued between 26.62 and 30.17, and Strongly Overvalued above 30.17. The current Forward P/OCF of 25.25 falls within the Historic Trend Line -Fairly Valued range.
29.36
P/FCF
Waters Corp. (WAT) has a current P/FCF of 29.36. The 5-year average P/FCF is 28.50. The thresholds are as follows: Strongly Undervalued below 16.97, Undervalued between 16.97 and 22.74, Fairly Valued between 34.26 and 22.74, Overvalued between 34.26 and 40.02, and Strongly Overvalued above 40.02. The current Forward P/FCF of 29.36 falls within the Historic Trend Line -Fairly Valued range.
Waters Corp (WAT) has a current Price-to-Book (P/B) ratio of 10.16. Compared to its 3-year average P/B ratio of 18.21 , the current P/B ratio is approximately -44.22% higher. Relative to its 5-year average P/B ratio of 31.57, the current P/B ratio is about -67.83% higher. Waters Corp (WAT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.69%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.83% , the current FCF yield is about -100.00% lower.
10.16
P/B
Median3y
18.21
Median5y
31.57
2.54
FCF Yield
Median3y
2.69
Median5y
2.83
Competitors Valuation Multiple
The average P/S ratio for WAT's competitors is 1.31, providing a benchmark for relative valuation. Waters Corp Corp (WAT) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 8.05%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WAT increased by 6.84% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 32.12 to 36.44.
The secondary factor is the Revenue Growth, contributed 8.05%to the performance.
Overall, the performance of WAT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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