WTS Relative Valuation
WTS'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, WTS is overvalued; if below, it's undervalued.
Historical Valuation
Watts Water Technologies Inc (WTS) is now in the Fair zone, suggesting that its current forward PE ratio of 24.88 is considered Fairly compared with the five-year average of 24.26. The fair price of Watts Water Technologies Inc (WTS) is between 240.82 to 302.83 according to relative valuation methord.
Relative Value
Fair Zone
240.82-302.83
Current Price：273.92
Fair
24.88
PE
1Y
3Y
5Y
Trailing
Forward
16.15
EV/EBITDA
Watts Water Technologies Inc. (WTS) has a current EV/EBITDA of 16.15. The 5-year average EV/EBITDA is 15.01. The thresholds are as follows: Strongly Undervalued below 11.21, Undervalued between 11.21 and 13.11, Fairly Valued between 16.91 and 13.11, Overvalued between 16.91 and 18.80, and Strongly Overvalued above 18.80. The current Forward EV/EBITDA of 16.15 falls within the Historic Trend Line -Fairly Valued range.
17.95
EV/EBIT
Watts Water Technologies Inc. (WTS) has a current EV/EBIT of 17.95. The 5-year average EV/EBIT is 17.34. The thresholds are as follows: Strongly Undervalued below 12.79, Undervalued between 12.79 and 15.06, Fairly Valued between 19.62 and 15.06, Overvalued between 19.62 and 21.90, and Strongly Overvalued above 21.90. The current Forward EV/EBIT of 17.95 falls within the Historic Trend Line -Fairly Valued range.
3.60
PS
Watts Water Technologies Inc. (WTS) has a current PS of 3.60. The 5-year average PS is 2.88. The thresholds are as follows: Strongly Undervalued below 2.04, Undervalued between 2.04 and 2.46, Fairly Valued between 3.31 and 2.46, Overvalued between 3.31 and 3.73, and Strongly Overvalued above 3.73. The current Forward PS of 3.60 falls within the Overvalued range.
22.93
P/OCF
Watts Water Technologies Inc. (WTS) has a current P/OCF of 22.93. The 5-year average P/OCF is 21.62. The thresholds are as follows: Strongly Undervalued below 13.72, Undervalued between 13.72 and 17.67, Fairly Valued between 25.57 and 17.67, Overvalued between 25.57 and 29.52, and Strongly Overvalued above 29.52. The current Forward P/OCF of 22.93 falls within the Historic Trend Line -Fairly Valued range.
24.65
P/FCF
Watts Water Technologies Inc. (WTS) has a current P/FCF of 24.65. The 5-year average P/FCF is 23.82. The thresholds are as follows: Strongly Undervalued below 15.72, Undervalued between 15.72 and 19.77, Fairly Valued between 27.87 and 19.77, Overvalued between 27.87 and 31.92, and Strongly Overvalued above 31.92. The current Forward P/FCF of 24.65 falls within the Historic Trend Line -Fairly Valued range.
Watts Water Technologies Inc (WTS) has a current Price-to-Book (P/B) ratio of 4.67. Compared to its 3-year average P/B ratio of 4.29 , the current P/B ratio is approximately 8.77% higher. Relative to its 5-year average P/B ratio of 4.29, the current P/B ratio is about 8.82% higher. Watts Water Technologies Inc (WTS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.21%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.93% , the current FCF yield is about -100.00% lower.
4.67
P/B
Median3y
4.29
Median5y
4.29
3.75
FCF Yield
Median3y
4.21
Median5y
3.93
Competitors Valuation Multiple
The average P/S ratio for WTS's competitors is , providing a benchmark for relative valuation. Watts Water Technologies Inc Corp (WTS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 12.53%, 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 WTS increased by 34.74% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.27 to 28.27.
The secondary factor is the Revenue Growth, contributed 12.53%to the performance.
Overall, the performance of WTS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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