Upside case
Bull case
$113+27.8%
VLTO would need investors to value it at roughly 27x earnings — about 6x more generous than today's 21x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Veralto Corporation (VLTO) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
12
analysts
5 bullish · 0 bearish · 12 covering VLTO
Strong Buy
0
Buy
5
Hold
7
Sell
0
Strong Sell
0
Consensus Target
$106
+19.6% vs today
Scenario Range
$80 – $113
Model bear to bull value window
Coverage
12
Published analyst ratings
Valuation Context
20.9x
Forward P/E · Market cap $22.1B
VLTO price targets
Three scenarios for where VLTO stock could go
Current
~$89
Confidence
78 / 100
Updated
May 1, 2026
Where we are now
Current · $89
Bear
$80
Base
$102
Bull
$113
Market caseClosest to today
Base case
$102+14.4%
At 24x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$80-10.0%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push VLTO down roughly 10% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Veralto Corporation
VLTO · NYSEIndustrialsIndustrial - Pollution & Treatment ControlsDecember year-end
Veralto Corporation is a global provider of water quality and product quality solutions, operating through two main segments: Water Quality and Product Quality & Innovation. The company generates revenue primarily from selling precision instrumentation, water treatment technologies, marking and coding systems, and related consumables and services — with the Water Quality segment contributing roughly 60% of revenue and Product Quality & Innovation around 40%. Its competitive advantage lies in deep domain expertise across critical applications, strong brand recognition in niche markets like water analytics and packaging solutions, and recurring revenue from consumables and service contracts.
Market Cap
$22.1B
Revenue TTM
$5.6B
Net Income TTM
$969M
Net Margin
17.3%
VLTO Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
82%Exceptional
vs consensus estimates
Avg EPS Surprise
+6.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.93/$0.88
Revenue
$1.4B/$1.3B
Q4 2025
EPS
$0.99/$0.95
Revenue
$1.4B/$1.4B
Q1 2026
EPS
$1.04/$0.98
Revenue
$1.4B/$1.4B
Q2 2026
EPS
$1.07/$1.02
Revenue
$1.4B/$1.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.93/$0.88 | +5.4% | $1.4B/$1.3B | +2.0% |
| Q4 2025 | $0.99/$0.95 | +4.7% | $1.4B/$1.4B | +0.4% |
| Q1 2026 | $1.04/$0.98 | +6.3% | $1.4B/$1.4B | -0.7% |
| Q2 2026 | $1.07/$1.02 | +4.9% | $1.4B/$1.4B | +1.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$5.9B
+5.2% YoY
FY2
$6.2B
+5.3% YoY
EPS Outlook
FY1
$4.09
+5.2% YoY
FY2
$4.30
+5.1% YoY
Trailing FCF (TTM)$1.0B
FCF Margin: 18.6%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
VLTO beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
VLTO Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $5.5B
Product Mix
Latest annual revenue by segment or product family
Revenue from Contract with Customer, Measurement, Recurring
61.0%
+6.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
All Other Countries
44.4%
+7.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Revenue from Contract with Customer, Measurement, Recurring is the largest disclosed segment at 61.0% of FY 2025 revenue, up 6.7% YoY.
All Other Countries is the largest reported region at 44.4%, up 7.2% YoY.
VLTO Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Undervalued
Fair value est. $101 — implies +15.7% from today's price.
Upside to Fair Value
15.7%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
VLTO
23.6x
vs
S&P 500
25.1x
6% discount
vs Industrials Trailing P/E
VLTO
23.6x
vs
Industrials
25.5x
8% discount
vs VLTO 5Y Avg P/E
Today
23.6x
vs
5Y Average
27.1x
13% discount
Forward PE
20.9x
S&P 500
19.1x
+10%
Industrials
20.6x
+2%
5Y Avg
—
—
Trailing PE
23.6x
S&P 500
25.1x
-6%
Industrials
25.5x
-8%
5Y Avg
27.1x
-13%
PEG Ratio
—
S&P 500
1.70x
—
Industrials
1.56x
—
5Y Avg
—
—
EV/EBITDA
16.8x
S&P 500
15.3x
+10%
Industrials
13.8x
+22%
5Y Avg
19.4x
-13%
Price/FCF
21.8x
S&P 500
21.4x
+2%
Industrials
20.7x
+5%
5Y Avg
26.0x
-16%
Price/Sales
4.0x
S&P 500
3.1x
+30%
Industrials
1.6x
+155%
5Y Avg
4.5x
-11%
Dividend Yield
0.49%
S&P 500
1.90%
-74%
Industrials
1.24%
-60%
5Y Avg
0.39%
+25%
| Metric | VLTO | S&P 500 | Industrials | 5Y Avg VLTO |
|---|---|---|---|---|
| Forward PE | 20.9x | 19.1x | 20.6x | — |
| Trailing PE | 23.6x | 25.1x | 25.5x | 27.1x-13% |
| PEG Ratio | — | 1.70x | 1.56x | — |
| EV/EBITDA | 16.8x | 15.3x | 13.8x+22% | 19.4x-13% |
| Price/FCF | 21.8x | 21.4x | 20.7x | 26.0x-16% |
| Price/Sales | 4.0x | 3.1x+30% | 1.6x+155% | 4.5x-11% |
| Dividend Yield | 0.49% | 1.90% | 1.24% | 0.39% |
VLTO trades above S&P 500 benchmarks on 1 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolVLTO Financial Health
Verdict
Exceptional
VLTO generates $1.0B in free cash flow at a 18.6% margin — 25.7% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$5.6B
Revenue Growth
TTM vs prior year
+5.9%
Gross Margin
Gross profit as a share of revenue
59.9%
Operating Margin
Operating income divided by revenue
23.1%
Net Margin
Net income divided by revenue
17.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.89
Free Cash Flow (TTM)
Cash generation after capex
$1.0B
FCF Margin
FCF as share of revenue — the primary cash quality signal
18.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
25.7%
ROA
Return on assets, trailing twelve months
12.9%
Cash & Equivalents
Liquid assets on the balance sheet
$2.0B
Net Debt
Total debt minus cash
$642M
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.6× FCF
~0.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
33.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.5%
Dividend
0.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.44
Payout Ratio
Share of earnings distributed as dividends
11.6%
Shares Outstanding
Current diluted share count
249M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageVLTO Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Debt Burden
Veralto has a significant debt load of approximately $2.7 billion as of December 31, 2025, with an additional $1.5 billion available under a revolving credit agreement. This substantial debt could limit operational flexibility and adversely affect financial statements if covenants are breached.
High Risk
Impairment Charges
The company may face impairment charges for its goodwill and other intangible assets, totaling around $3.4 billion as of December 31, 2025. Negative industry trends or integration challenges from acquisitions could trigger these charges, impacting financial performance.
High Risk
Regulatory Compliance
Veralto operates in a heavily regulated environment, requiring significant resources to comply with evolving regulations. Non-compliance can lead to fines, reputational damage, and loss of customer trust, which could severely impact financial results.
Medium
Supply Chain Disruptions
Global supply chains are susceptible to natural disasters, geopolitical tensions, and trade disputes, which can lead to production delays and increased costs. Such disruptions may hinder Veralto's ability to meet customer demand.
Medium
Intense Competition
Veralto faces stiff competition in a highly competitive industry characterized by rapid innovation cycles. This competition can lead to pricing pressures and market share erosion, necessitating continuous investment in R&D and marketing.
Medium
Technological Disruption
The rapid pace of technological change poses a threat to Veralto, as disruptive technologies could render existing product lines obsolete. Significant investment may be required to remain relevant in the market.
Lower
Economic Conditions
Global economic fluctuations, including downturns and currency volatility, can impact customer spending and Veralto's financial results. Slow customer demand due to poor economic conditions represents a potential headwind.
Lower
Stock Volatility
As a recent market entrant, VLTO has exhibited volatility, which may deter risk-averse investors. This volatility can affect investor sentiment and the stock's market performance.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why VLTO Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Robust Sales Growth
Veralto has reported strong core sales growth, with organic revenue increasing by 5.1% year-over-year. This growth is primarily driven by its Product Quality & Innovation and Water Quality segments.
Financial Health and Profitability
The company exhibits strong financial health, characterized by a healthy return on equity and a solid net margin. Veralto's free cash flow margin is also strong and has been expanding, indicating robust financial management.
Analyst Confidence
Analysts maintain a 'Moderate Buy' consensus rating for Veralto, with price targets indicating potential for appreciation. High institutional ownership further suggests confidence in the company's future prospects.
Strategic Acquisitions
Veralto is executing a strategy that includes bolt-on mergers and acquisitions, targeting companies with strong margins and synergy potential. This approach is expected to enhance its market position and profitability.
Recurring Revenue Growth
The company benefits from strong growth in recurring revenue from consumables and services. This recurring revenue stream provides stability and predictability to Veralto's financial performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
VLTO Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$88.74
52W Range Position
15%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$84.99
+4.4% from the low
52-Week High
$110.11
-19.4% from the high
1 Month
-0.09%
3 Month
-4.26%
YTD
-9.9%
1 Year
-7.6%
3Y CAGR
+3.3%
5Y CAGR
+1.9%
10Y CAGR
+1.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
VLTO vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
20.9x
vs 20.8x median
+1% above peer median
Revenue Growth
+5.2%
vs +6.6% median
-20% below peer median
Net Margin
17.3%
vs 14.9% median
+16% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
VLT VLTO Veralto Corporation | $22.1B | 20.9x | +5.2% | 17.3% | Hold | +19.6% |
DHR DHR Danaher Corporation | $124.3B | 20.8x | +1.8% | 14.9% | Buy | +40.6% |
FTV FTV Fortive Corporation | $18.7B | 20.6x | -9.3% | 11.5% | Hold | -0.4% |
ROP ROP Roper Technologies, Inc. | $36.3B | 16.1x | +9.7% | 21.1% | Buy | +29.8% |
AME AME AMETEK, Inc. | $53.7B | 29.1x | +6.6% | 20.1% | Buy | +4.9% |
WAT WAT Waters Corporation | $22.8B | 24.4x | +33.4% | 11.9% | Hold | +14.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
VLTO Dividend and Capital Return
VLTO returns 0.5% total yield, led by a 0.49% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
0.49%
Payout Ratio
11.6%
How VLTO Splits Its Return
Div 0.49%
Dividend 0.49%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.44
Growth Streak
Consecutive years of dividend increases
2Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
249M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.13 | — | — | — |
| 2025 | $0.46 | +21.1% | 0.0% | 0.4% |
| 2024 | $0.38 | +322.2% | 0.0% | 0.4% |
| 2023 | $0.09 | — | 0.7% | 0.7% |
FAQ
7 questionsVLTO Investor Questions
Common questions answered from live analyst data and company financials.
01Is Veralto Corporation (VLTO) stock a buy or sell in 2026?
Veralto Corporation (VLTO) is rated Hold by Wall Street analysts as of 2026. Of 12 analysts covering the stock, 5 rate it Buy or Strong Buy, 7 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $106, implying +19.6% from the current price of $89. The bear case scenario is $80 and the bull case is $113.
02What is the VLTO stock price target for 2026?
The Wall Street consensus price target for VLTO is $106 based on 12 analyst estimates. The high-end target is $113 (+27.3% from today), and the low-end target is $102 (+14.9%). The base case model target is $102.
03Is Veralto Corporation (VLTO) stock overvalued in 2026?
VLTO trades at 20.9x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Veralto Corporation (VLTO) stock in 2026?
The primary risks for VLTO in 2026 are: (1) Debt Burden — Veralto has a significant debt load of approximately $2. (2) Impairment Charges — The company may face impairment charges for its goodwill and other intangible assets, totaling around $3. (3) Regulatory Compliance — Veralto operates in a heavily regulated environment, requiring significant resources to comply with evolving regulations. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Veralto Corporation's revenue and earnings forecast?
Analyst consensus estimates VLTO will report consensus revenue of $5.9B (+5.2% year-over-year) and EPS of $4.09 (+5.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $6.2B in revenue.
06When does Veralto Corporation (VLTO) report its next earnings?
A confirmed upcoming earnings date for VLTO is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Veralto Corporation generate?
Veralto Corporation (VLTO) generated $1.0B in free cash flow over the trailing twelve months — a free cash flow margin of 18.6%. VLTO returns capital to shareholders through dividends (0.5% yield) and share repurchases ($0 TTM).