Is Watts Water Technologies (WTS) Fairly Priced After Strong Multi Year Share Gains

Simply Wall St.01-10

If you are wondering whether Watts Water Technologies is priced attractively right now, you are not alone. This article walks through what the current market price might be implying about the company’...

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This article walks through what the current market price might be implying about the company’...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-wts/watts-water-technologies/news/is-watts-water-technologies-wts-fairly-priced-after-strong-m\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DCF","symbol_name":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-wts/watts-water-technologies/news/is-watts-water-technologies-wts-fairly-priced-after-strong-m","article_id":"2602358568","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3072000-choice1-main-header/1585186775716"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-wts/watts-water-technologies/news/is-watts-water-technologies-wts-fairly-priced-after-strong-m","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602358568","pubTimestamp":1768011705,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Watts Water Technologies is priced attractively right now, you are not alone. This article walks through what the current market price might be implying about the company’s value.\nThe share price recently closed at US$287.44, with returns of 3.2% over the last 7 days, 3.4% over 30 days, 3.2% year to date and 48.4% over 1 year, alongside 86.0% over 3 years and 131.2% over 5 years.\nThese moves sit against a backdrop of ongoing interest in water infrastructure,...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU0323240290.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AD\" INC","LU0323239441.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AC\" ACC","WTS":"沃茨水工业","BK4161":"工业机械"},"translate_title":"瓦茨水务技术公司(WTS)在多年股价强劲上涨后的定价是否合理","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WTS":1.5,"DCF":1},"content_text":"If you are wondering whether Watts Water Technologies is priced attractively right now, you are not alone. This article walks through what the current market price might be implying about the company’s value. The share price recently closed at US$287.44, with returns of 3.2% over the last 7 days, 3.4% over 30 days, 3.2% year to date and 48.4% over 1 year, alongside 86.0% over 3 years and 131.2% over 5 years. These moves sit against a backdrop of ongoing interest in water infrastructure, efficiency and safety solutions, areas where Watts Water Technologies is an established operator. That broader context is part of what investors are weighing as they look at the current share price and future prospects. On Simply Wall St’s valuation checks, the company scores 1 out of 6 for being undervalued, as shown in its valuation score. Next, we will look at how different methods such as multiples and cash flow models line up, and then finish with a way of thinking about valuation that can give you a clearer overall picture.  Watts Water Technologies scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Watts Water Technologies Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow (DCF) model takes projections of a company’s future cash flows and discounts them back to today’s dollars to estimate what the entire business might be worth right now. For Watts Water Technologies, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $349.7 million. Analysts provide explicit free cash flow estimates for the next few years, then Simply Wall St extrapolates further using its own assumptions, with projections such as $398.2 million in 2026 and $502.3 million in 2029, and extending out to 2035 within the model. Putting all of those projected cash flows together and discounting them back to today gives an estimated intrinsic value of about $282.72 per share. Compared with the recent share price of $287.44, the DCF output suggests the stock is around 1.7% above this estimate, which is a very small gap and well within the kind of margin of error that is common for these models. Result: ABOUT RIGHT Watts Water Technologies is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. WTS Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Watts Water Technologies. Approach 2: Watts Water Technologies Price vs Earnings For a profitable company like Watts Water Technologies, the P/E ratio is a useful shorthand because it links what you pay today directly to the earnings the business is currently generating. Investors typically accept a higher P/E when they expect stronger growth or see lower risk, and a lower P/E when growth expectations are modest or risks are higher. Watts Water Technologies currently trades on a P/E of about 29.5x. That sits above the Machinery industry average of around 26.3x and below the peer group average of about 33.0x. Simply Wall St also calculates a proprietary “Fair Ratio” of 22.6x for Watts Water Technologies, which is the P/E level it might usually trade on given factors such as its earnings growth profile, industry, profit margins, market cap and risk characteristics. This Fair Ratio can be more informative than a simple comparison with peers or the broad industry, because it adjusts for company specific traits instead of assuming all Machinery stocks should trade at similar multiples. With the current P/E of 29.5x sitting above the Fair Ratio of 22.6x, the P/E-based view points to the shares being on the expensive side relative to this framework. Result: OVERVALUED NYSE:WTS P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Watts Water Technologies Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your own story about Watts Water Technologies linked to numbers like fair value, future revenue, earnings and margins. This turns your view of the business into a forecast and then into a fair value that you can compare with the current share price on Simply Wall St’s Community page, where millions of investors share their Narratives that automatically refresh when new earnings or news arrive. For Watts Water Technologies, you might see one investor building a Narrative that supports a fair value near the higher analyst target of US$320 based on confidence in water infrastructure demand and margin assumptions. Another might lean closer to US$250 if they focus more on risks around European weakness, tariffs and digital adoption. By setting up your own Narrative, you can quickly see whether the current price looks above or below what you think the shares are worth, then decide for yourself if that gap is large enough to act on. Do you think there's more to the story for Watts Water Technologies? Head over to our Community to see what others are saying! NYSE:WTS 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Watts Water Technologies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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