QualityDipStocks / Industrials · Electrical Products
Veralto VLTO
Not in a dip: trading near its 52-week high.
A quality company trading well above our fair value estimate.
- Fair value est.
- $75.38−32%
- Market Value
- forming
- Off 52-wk high
- at the high
- Risk vs market
- Lowbeta 0.14
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $111.10
- Fair value est.base case$75.38−32.2%
- 52-wk lowlowest close, 1 year$82.23−26.0%
- 52-wk highhighest close, 1 year$111.10at the price
- PriceFri Oct 30 close$111.10you are here
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 4.2% ±2 points. Bear = 10.5% and 2.2%; bull = 8.5% and 6.2% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, VLTO’s free cash flow would need to grow about 11% a year for five years; our estimate uses 4%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much VLTO moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 1.9× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.14
- Volatility
- 24% vs 13% SPY
- Correlation SPY
- 0.08
- Correlation QQQ
- −0.07
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ProfitabilityReturn on equity of 33% over the last 12 months.
ProfitabilityReturn on invested capital of 25%, above the 9.5% discount rate our DCF uses.
Cash returnsShare count down 2.1% in a year.
ProfitabilityGross margin of 60%, above the 35% median for the 114 Industrials companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $75.38, 32% below the price.
ProfitabilityReturn on equity fell 30 points in two fiscal years, to 30% in FY2025.
Balance sheetDebt / equity of 0.9×, above the 0.5× median for the 116 Industrials companies we cover.
ValuationEV/EBITDA of 20.8×, above the 16.6× median for the 96 Industrials companies we cover.
Cash returnsDividend yield of 0.5%, below the 1.1% median for the 116 Industrials companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Veralto in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Industrials
All fundamentals
P/E 27.2 · FCF yield 4.0% · ROE 33%
Valuation
- P/E
- 27.2×3-yr-end avg 27.1× · Industrials median 27.5×
- Price / FCF
- 24.9×
- FCF yield
- 4.0%
- EV / EBITDA
- 20.8×
- Price / sales
- 4.70×
- Price / book
- 8.43×
- Market cap
- $27.3Bprice × diluted shares
- Enterprise value
- $28.4B
Growth
- Revenue, 12 months
- $5.8B
- Sales growth, 12 months
- +6.4%vs the 12 months before
- Sales growth, 3 yrs
- +4.2%/yrfrom FY2022
- Diluted EPS, 12 months
- $4.05
- EPS growth, last FY
- +12.6%
- Net income, 12 months
- $1.0B
- Net income growth
- +10%12 months vs before
Profitability
- Gross margin
- 60.2%
- Operating margin
- 21.8%
- Net margin
- 17.3%
- FCF margin
- 18.8%
- Return on equity
- 33%
- Return on invested capital
- 25%
Balance sheet
- Cash & short-term inv.
- $1.8B
- Total debt
- $2.9B
- Net cash
- −$1.1B
- Debt / equity
- 0.90×
- Interest coverage
- 13.2×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.1B
- FCF growth, 12 months
- +11%
- Dividend yield
- 0.45%$123M paid
- Payout ratio
- 12%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- −2.1%diluted shares vs a year ago
- Stock-based comp
- $74M
Trailing 12 months to Oct 2, 2026; balance sheet at Oct 2, 2026. From Veralto’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $75.38 · FCF value $114.82
Assumes 4.2% growth for 5 years (revenue grew 4.2% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $4.46 a share (trailing 12 months to Oct 2, 2026), from the 10-Q filed Oct 30, 2026. Net debt $1.1B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 80 · 5 days +6.5%
The business
FCF $1.1B · Sales +8%
- Free cash flow, 12 months$1.1B
- Free-cash-flow yield4.1%
- Free-cash-flow margin18%
- Gross margin60%
- Operating margin23%
- Return on invested capital16%
- Return on equity34%
- Sales growth (latest quarter vs year-ago quarter)+8%
- Net debt / EBITDA0.9×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when VLTO fires a reversal signal
One text when a published rule fires on VLTO or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.