ZWS Valuation

Zurn Elkay Water Solutions Corp

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46.050

+0.22(0.480%)1D

Overview
Forecast
Valuation
Earnings

ZWS Relative Valuation

ZWS'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, ZWS is overvalued; if below, it's undervalued.

Historical Valuation

Zurn Elkay Water Solutions Corp (ZWS) is now in the Fair zone, suggesting that its current forward PE ratio of 30.87 is considered Fairly compared with the five-year average of 27.78. The fair price of Zurn Elkay Water Solutions Corp (ZWS) is between 29.18 to 56.34 according to relative valuation methord.

Relative Value

Fair Zone

29.18-56.34

Current Price：46.05

Fair

30.87

Trailing

Forward

18.19

EV/EBITDA

Zurn Elkay Water Solutions Corp. (ZWS) has a current EV/EBITDA of 18.19. The 5-year average EV/EBITDA is 16.24. The thresholds are as follows: Strongly Undervalued below 2.53, Undervalued between 2.53 and 9.38, Fairly Valued between 23.10 and 9.38, Overvalued between 23.10 and 29.96, and Strongly Overvalued above 29.96. The current Forward EV/EBITDA of 18.19 falls within the Historic Trend Line -Fairly Valued range.

22.80

EV/EBIT

Zurn Elkay Water Solutions Corp. (ZWS) has a current EV/EBIT of 22.80. The 5-year average EV/EBIT is 20.49. The thresholds are as follows: Strongly Undervalued below 4.31, Undervalued between 4.31 and 12.40, Fairly Valued between 28.58 and 12.40, Overvalued between 28.58 and 36.68, and Strongly Overvalued above 36.68. The current Forward EV/EBIT of 22.80 falls within the Historic Trend Line -Fairly Valued range.

4.56

Zurn Elkay Water Solutions Corp. (ZWS) has a current PS of 4.56. The 5-year average PS is 3.36. The thresholds are as follows: Strongly Undervalued below 0.35, Undervalued between 0.35 and 1.85, Fairly Valued between 4.87 and 1.85, Overvalued between 4.87 and 6.38, and Strongly Overvalued above 6.38. The current Forward PS of 4.56 falls within the Historic Trend Line -Fairly Valued range.

21.41

P/OCF

Zurn Elkay Water Solutions Corp. (ZWS) has a current P/OCF of 21.41. The 5-year average P/OCF is 21.23. The thresholds are as follows: Strongly Undervalued below -1.29, Undervalued between -1.29 and 9.97, Fairly Valued between 32.50 and 9.97, Overvalued between 32.50 and 43.76, and Strongly Overvalued above 43.76. The current Forward P/OCF of 21.41 falls within the Historic Trend Line -Fairly Valued range.

25.25

P/FCF

Zurn Elkay Water Solutions Corp. (ZWS) has a current P/FCF of 25.25. The 5-year average P/FCF is 23.96. The thresholds are as follows: Strongly Undervalued below 0.09, Undervalued between 0.09 and 12.03, Fairly Valued between 35.90 and 12.03, Overvalued between 35.90 and 47.84, and Strongly Overvalued above 47.84. The current Forward P/FCF of 25.25 falls within the Historic Trend Line -Fairly Valued range.

Zurn Elkay Water Solutions Corp (ZWS) has a current Price-to-Book (P/B) ratio of 4.91. Compared to its 3-year average P/B ratio of 3.63 , the current P/B ratio is approximately 35.30% higher. Relative to its 5-year average P/B ratio of 6.28, the current P/B ratio is about -21.78% higher. Zurn Elkay Water Solutions Corp (ZWS) has a Forward Free Cash Flow (FCF) yield of approximately 3.64%. Compared to its 3-year average FCF yield of 3.80%, the current FCF yield is approximately -4.23% lower. Relative to its 5-year average FCF yield of 4.12% , the current FCF yield is about -11.61% lower.

4.91

P/B

Median3y

3.63

Median5y

6.28

3.64

FCF Yield

Median3y

3.80

Median5y

4.12

Competitors Valuation Multiple

The average P/S ratio for ZWS's competitors is 3.01, providing a benchmark for relative valuation. Zurn Elkay Water Solutions Corp Corp (ZWS) exhibits a P/S ratio of 4.56, which is 51.28% above the industry average. Given its robust revenue growth of 7.89%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ZWS.N

Zurn Elkay Water Solutions Corp

Modine Manufacturing Co

Performance Decomposition

Market capitalization of ZWS increased by 42.00% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 35.18 to 46.31.

The secondary factor is the Revenue Growth, contributed 7.89%to the performance.

Overall, the performance of ZWS in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.89%

412.00M → 444.50M

Revenue Growth

2.45%

11.00 → 11.27

Margin Expansion

31.66%

35.18 → 46.31

P/E Change

42.00%