VLTO
Veralto Corporation$94.73
Unclear
Target $93.54
Report: Mar 13, 2026Industrials • Industrial - Pollution & Treatment Controls • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$94.73-1.3%
Rec: UnclearConviction: Medium
Entry Target
$71.95
(24% below current)
Fair Value
$93.54
(1% below current)
Stop Loss
$75.86
(20% below current)
Position Size
Starter
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$110.11
52 Week Low$83.87
Avg. 3 Month Volume1.97M
Efficiency
LTM Gross Margin59.9%
LTM EBITDA Margin24.5%
LTM EBIT Margin23.1%
LTM Operating Margin23.2%
LTM ROA13.0%
LTM ROE34.5%
LTM ROIC38.8%
LTM ROCE23.0%
Capital Structure
Market Cap (MM)$21.9B
Enterprise Value (MM)$22.6B
Shares Outstanding248.60M
Total Debt (MM)$2.67B
Cash & Equivalents (MM)$2.03B
LTM Net Debt (MM)$642.00M
LTM Net Debt/EBITDA0.5x
Growth
TTM Rev. Growth6.0%
Last 3-Yr Rev. CAGRN/A
Last 3-Yr EBITDA CAGRN/A
Last 3-Yr EPS CAGRN/A
Valuation
Street Target Price$108.57
LTM EV/Revenue4.1x
LTM EV/Gross Profit6.8x
LTM EV/EBIT17.8x
LTM EV/EBITDA16.7x
LTM P/E23.3x
LTM EV/FCF22.2x
LTM P/FCF21.6x
LTM P/TB5.1x
LTM P/B7.1x
Dividend Yield0.5%
Payout Ratio12.1%
Executive SummarySituation: Current price is $94.73 versus fair value $93.54 (-1.3% expected return), and valuation confidence is stable. Debate: Bull case depends on Execution of the 750 million dollar share repurchase program. Bear case centers on Moat erosion due to technological disruption or low-cost competition in the Water Quality segment, particularly in China. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
Veralto's 60% recurring revenue base provides exceptional earnings visibility, while its 38.8% ROIC demonstrates a highly efficient capital model. The expansion into data center liquid cooling represents a high-growth adjacent market that leverages existing water treatment expertise.
Bear Case
Operating margins have plateaued at 23.2% as SG&A costs rose to 31.9% of sales, indicating that efficiency gains are being offset by integration costs. Persistent demand weakness in China and rising tariff headwinds pose significant risks to the 2026 core sales growth guidance of low-to-mid single digits.
Key Catalysts
Near-Term (0-6 months)Impact: High
Execution of the 750 million dollar share repurchase program. This would signal management's conviction in the stock's value and provide a t...
Mid-Term (6-18 months)Impact: Moderate
Quantifiable revenue synergies from the In-Situ and TraceGains acquisitions. Proving that these deals can drive top-line growth above the 5-...
Long-Term (18+ months)Impact: Moderate
Veralto is relevant for analysis now because it is trading at a rare discount to its 200-day moving average while simultaneously holding rec...
Primary Risks
Concern: Medium
Moat erosion due to technological disruption or low-cost competition in the Water Quality segment, particularly in China. This would permane...
Concern: High
Capital misallocation through overpaying for acquisitions. The current negative incremental ROIC of -66.9% suggests that recent capital depl...
Concern: Medium
The stewardship verdict is mixed. While the board structure is robust and independent, the lack of insider buying and the dormant buyback pr...
Recent Activity
2026-02-04SEC Filing (8-K)
-6.20%Veralto reported Q4 and full-year 2025 results with record performance.
2025-11-25SEC Filing (8-K)
+5.93%Veralto Corporation approved a $750 million share repurchase program.
2025-02-05SEC Filing (8-K)
-5.12%Veralto reported Q4 and full-year 2024 results with strong performance.
2024-07-26SEC Filing (8-K)
+5.28%Veralto reported Q2 2024 financial results with raised full-year guidance.
2023-10-03SEC Filing (8-K)
-9.48%Danaher Corporation announces spin-off of Veralto Corporation to stockholders, creating two separate publicly traded companies.
Valuation Table
9.8/10Decision Grade