WAT Valuation

Waters Corp

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302.190

+11.75(4.046%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PE ratio of 22.09 is considered Undervalued compared with the five-year average of 26.90. The fair price of Waters Corp (WAT) is between 318.58 to 399.50 according to relative valuation methord. Compared to the current price of 302.19 USD , Waters Corp is Undervalued By 5.15%.

Relative Value

Fair Zone

318.58-399.50

Current Price：302.19

5.15%

Undervalued

22.09

Trailing

Forward

15.62

EV/EBITDA

Waters Corp. (WAT) has a current EV/EBITDA of 15.62. The 5-year average EV/EBITDA is 19.79. The thresholds are as follows: Strongly Undervalued below 14.63, Undervalued between 14.63 and 17.21, Fairly Valued between 22.37 and 17.21, Overvalued between 22.37 and 24.95, and Strongly Overvalued above 24.95. The current Forward EV/EBITDA of 15.62 falls within the Undervalued range.

18.18

EV/EBIT

Waters Corp. (WAT) has a current EV/EBIT of 18.18. The 5-year average EV/EBIT is 22.86. The thresholds are as follows: Strongly Undervalued below 16.82, Undervalued between 16.82 and 19.84, Fairly Valued between 25.89 and 19.84, Overvalued between 25.89 and 28.91, and Strongly Overvalued above 28.91. The current Forward EV/EBIT of 18.18 falls within the Undervalued range.

5.36

Waters Corp. (WAT) has a current PS of 5.36. The 5-year average PS is 6.48. The thresholds are as follows: Strongly Undervalued below 4.68, Undervalued between 4.68 and 5.58, Fairly Valued between 7.38 and 5.58, Overvalued between 7.38 and 8.29, and Strongly Overvalued above 8.29. The current Forward PS of 5.36 falls within the Undervalued range.

19.49

P/OCF

Waters Corp. (WAT) has a current P/OCF of 19.49. The 5-year average P/OCF is 23.02. The thresholds are as follows: Strongly Undervalued below 15.91, Undervalued between 15.91 and 19.46, Fairly Valued between 26.57 and 19.46, Overvalued between 26.57 and 30.13, and Strongly Overvalued above 30.13. The current Forward P/OCF of 19.49 falls within the Historic Trend Line -Fairly Valued range.

22.94

P/FCF

Waters Corp. (WAT) has a current P/FCF of 22.94. The 5-year average P/FCF is 29.34. The thresholds are as follows: Strongly Undervalued below 15.84, Undervalued between 15.84 and 22.59, Fairly Valued between 36.09 and 22.59, Overvalued between 36.09 and 42.83, and Strongly Overvalued above 42.83. The current Forward P/FCF of 22.94 falls within the Historic Trend Line -Fairly Valued range.

Waters Corp (WAT) has a current Price-to-Book (P/B) ratio of 8.33. Compared to its 3-year average P/B ratio of 21.83 , the current P/B ratio is approximately -61.85% higher. Relative to its 5-year average P/B ratio of 17.01, the current P/B ratio is about -51.04% higher. Waters Corp (WAT) has a Forward Free Cash Flow (FCF) yield of approximately 3.58%. Compared to its 3-year average FCF yield of 2.65%, the current FCF yield is approximately 35.14% lower. Relative to its 5-year average FCF yield of 2.88% , the current FCF yield is about 24.41% lower.

8.33

P/B

Median3y

21.83

Median5y

17.01

3.58

FCF Yield

Median3y

2.65

Median5y

2.88

Competitors Valuation Multiple

The average P/S ratio for WAT's competitors is 4.00, providing a benchmark for relative valuation. Waters Corp Corp (WAT) exhibits a P/S ratio of 5.36, which is 34.03% above the industry average. Given its robust revenue growth of 8.86%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

West Pharmaceutical Services Inc

Zimmer Biomet Holdings Inc

2.46

6.97%

21.34B

Performance Decomposition

Market capitalization of WAT decreased by 12.75% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 708.53M to 771.33M.

The secondary factor is the Margin Expansion, contributed -5.36%to the performance.

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

8.86%

708.53M → 771.33M

Revenue Growth

-5.36%

20.15 → 19.07

Margin Expansion

-16.25%

32.55 → 27.26

P/E Change

-12.75%