Latest Ratios: P/E Ratio 25.9x · EV/EBITDA 17.3x · ROE 18.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.6B | $9.2B | $6.8B | $7.0B | $4.9B | $6.6B | $4.1B | $3.4B | $2.2B | $2.6B | $2.2B |
| Enterprise Value | $11.4B | $9.0B | $6.6B | $6.9B | $4.8B | $6.5B | $4.1B | $3.5B | $2.4B | $2.8B | $2.6B |
| P/E Ratio → | 25.94 | 27.14 | 23.39 | 26.64 | 19.52 | 39.71 | 36.22 | 25.91 | 17.73 | 35.83 | 26.72 |
| P/S Ratio | 4.14 | 3.79 | 3.02 | 3.39 | 2.48 | 3.64 | 2.74 | 2.13 | 1.41 | 1.79 | 1.61 |
| P/B Ratio | 5.72 | 4.56 | 3.99 | 4.61 | 3.78 | 5.61 | 3.87 | 3.49 | 2.49 | 3.15 | 3.06 |
| P/FCF | 31.20 | 25.95 | 20.90 | 24.83 | 25.08 | 42.71 | 22.37 | 20.70 | 16.67 | 20.90 | 22.03 |
| P/OCF | 28.75 | 23.00 | 18.86 | 22.46 | 21.93 | 36.41 | 18.08 | 17.59 | 13.07 | 16.76 | 16.29 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.71 | 2.94 | 3.37 | 2.40 | 3.58 | 2.73 | 2.19 | 1.51 | 1.94 | 1.83 |
| EV / EBITDA | 17.31 | 17.10 | 14.88 | 17.57 | 13.39 | 22.77 | 18.09 | 14.37 | 9.97 | 13.19 | 13.06 |
| EV / EBIT | 24.06 | 19.80 | 16.52 | 19.37 | 15.10 | 26.96 | 22.83 | 17.68 | 12.38 | 17.45 | 17.03 |
| EV / FCF | — | 25.37 | 20.32 | 24.64 | 24.25 | 42.07 | 22.25 | 21.25 | 17.79 | 22.64 | 25.09 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.5% | 49.5% | 47.2% | 46.7% | 44.2% | 42.4% | 41.5% | 42.3% | 42.0% | 41.4% | 40.4% |
| Operating Margin | 19.3% | 19.3% | 17.3% | 17.1% | 15.9% | 13.2% | 12.0% | 12.3% | 12.0% | 11.1% | 10.4% |
| Net Profit Margin | 14.0% | 14.0% | 12.9% | 12.7% | 12.7% | 9.2% | 7.6% | 8.2% | 8.0% | 5.0% | 6.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.2% | 18.2% | 18.1% | 18.6% | 20.3% | 14.8% | 11.2% | 14.1% | 14.5% | 9.4% | 11.7% |
| ROA | 12.9% | 12.9% | 12.4% | 12.4% | 13.3% | 9.2% | 6.6% | 7.8% | 7.4% | 4.1% | 4.8% |
| ROIC | 21.2% | 21.2% | 19.7% | 20.3% | 21.4% | 16.9% | 12.8% | 14.0% | 13.6% | 11.6% | 10.7% |
| ROCE | 21.7% | 21.7% | 20.1% | 20.3% | 21.0% | 16.7% | 13.3% | 15.1% | 13.9% | 11.7% | 10.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.12 | 0.20 | 0.11 | 0.12 | 0.19 | 0.32 | 0.40 | 0.60 | 0.89 |
| Debt / EBITDA | 0.37 | 0.37 | 0.44 | 0.76 | 0.42 | 0.50 | 0.87 | 1.27 | 1.49 | 2.32 | 3.31 |
| Net Debt / Equity | — | -0.10 | -0.11 | -0.03 | -0.13 | -0.09 | -0.02 | 0.09 | 0.17 | 0.26 | 0.43 |
| Net Debt / EBITDA | -0.39 | -0.39 | -0.43 | -0.13 | -0.46 | -0.35 | -0.09 | 0.37 | 0.63 | 1.01 | 1.59 |
| Debt / FCF | — | -0.58 | -0.58 | -0.18 | -0.83 | -0.65 | -0.11 | 0.54 | 1.12 | 1.74 | 3.06 |
| Interest Coverage | 42.28 | 42.28 | 27.26 | 43.62 | 44.94 | 38.16 | 13.56 | 14.04 | 11.71 | 8.49 | 6.65 |
Net cash position: cash ($406M) exceeds total debt ($198M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.51 | 2.51 | 2.59 | 2.61 | 2.51 | 2.11 | 2.27 | 1.75 | 2.07 | 2.39 | 2.02 |
| Quick Ratio | 1.49 | 1.49 | 1.65 | 1.63 | 1.52 | 1.20 | 1.43 | 1.11 | 1.25 | 1.60 | 1.45 |
| Cash Ratio | 0.79 | 0.79 | 0.93 | 0.86 | 0.82 | 0.59 | 0.70 | 0.52 | 0.59 | 0.86 | 0.80 |
| Asset Turnover | — | 0.85 | 0.94 | 0.89 | 1.03 | 0.97 | 0.87 | 0.93 | 0.95 | 0.84 | 0.78 |
| Inventory Turnover | 2.35 | 2.35 | 3.04 | 2.74 | 2.94 | 2.81 | 3.35 | 3.42 | 3.17 | 3.30 | 3.48 |
| Days Sales Outstanding | — | 44.01 | 41.03 | 46.12 | 43.11 | 44.57 | 47.81 | 50.13 | 47.93 | 54.15 | 51.68 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.7% | 0.8% | 0.7% | 0.8% | 0.5% | 0.8% | 0.9% | 1.3% | 1.0% | 1.1% |
| Payout Ratio | 19.6% | 19.6% | 19.1% | 17.7% | 15.7% | 20.7% | 27.5% | 23.9% | 22.7% | 35.4% | 29.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 3.7% | 4.3% | 3.8% | 5.1% | 2.5% | 2.8% | 3.9% | 5.6% | 2.8% | 3.7% |
| FCF Yield | 3.2% | 3.9% | 4.8% | 4.0% | 4.0% | 2.3% | 4.5% | 4.8% | 6.0% | 4.8% | 4.5% |
| Buyback Yield | 0.1% | 0.2% | 0.2% | 0.2% | 1.4% | 0.2% | 0.7% | 0.6% | 1.2% | 0.7% | 1.2% |
| Total Shareholder Yield | 0.7% | 0.9% | 1.1% | 0.9% | 2.2% | 0.8% | 1.5% | 1.5% | 2.5% | 1.7% | 2.3% |
| Shares Outstanding | — | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $35M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying WTS stock.
Watts Water Technologies, Inc.'s current P/E ratio is 25.9x. The historical average is 24.2x. This places it at the 68th percentile of its historical range.
Watts Water Technologies, Inc.'s current EV/EBITDA is 17.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
Watts Water Technologies, Inc.'s return on equity (ROE) is 18.2%. The historical average is 9.6%.
Based on historical data, Watts Water Technologies, Inc. is trading at a P/E of 25.9x. This is at the 68th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Watts Water Technologies, Inc.'s current dividend yield is 0.58% with a payout ratio of 19.6%.
Watts Water Technologies, Inc. has 49.5% gross margin and 19.3% operating margin. Operating margin between 10-20% is typical for established companies.
Watts Water Technologies, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin peak reversal risk
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Margin Expansion
Based on WTS's reported figures, the trailing P/E of 34.04 and EV/EBITDA of 21.47 sit well above the Industrials sector norm, implying the market is capitalizing a durable step-up in margins rather than cyclical earnings.
The gap between trailing P/E of 34.04 and forward P/E of 26.93 implies consensus expects roughly a quarter of earnings growth over the next year, which is consistent with the recent EPS acceleration. A PEG of 1.37 suggests the growth premium is not wholly unjustified, though it leaves little margin for error if the 2026Q3 gross margin of 55.1% proves to be a peak. Investors should monitor whether the multiple compresses as margins normalize toward the 46.7% to 50.6% range observed in 2024 and 2025.
Operating Margin Expansion Outpaces Gross Gains
As reported in financial statements, WTS operating margin climbed from 16.5% in 2024Q4 to 26.2% in 2026Q3, a roughly tenfold-points improvement that exceeds the gross margin gain, indicating overhead leverage is contributing meaningfully.
Operating margin expanding faster than gross margin implies SG&A held near $210M per quarter while revenue grew, which suggests genuine operating leverage rather than only pricing. Net margin of 20.0% versus 12.5% two years earlier reinforces that earnings quality has improved at multiple levels. The concern is that the 2026Q3 level sits above the company's own historical range, so sustainability should be treated as a question for further investigation.
ROIC Recovering but Still Modest
Based on WTS's reported figures, ROIC rose from 4.3% in 2024Q4 to 7.3% in 2026Q3, yet remains well below the 12.9% to 19.7% ROIC of peers such as ITRI and MWA, suggesting capital is compounding from a lower base.
The ROIC trajectory is driven primarily by margin expansion rather than asset efficiency, since asset turnover of 0.24 is essentially flat across the period. The large goodwill base, roughly 28% of total assets, dilutes returns on invested capital and likely explains much of the gap versus peers. Investors should monitor whether ROIC continues rising as acquired intangibles are absorbed into the earnings base.
Minimal Debt Limits Financial Risk
According to recent SEC filings, WTS debt-to-equity fell from 0.16 to 0.04 and debt-to-EBITDA dropped from 1.97 to 0.47, indicating the balance sheet has moved from conservatively levered to nearly unlevered over two years.
Interest coverage rising from 26.6x to 96.9x reflects both lower debt and higher operating earnings, making debt service effectively non-binding at current levels. The near-zero leverage suggests a strategic preference for organic funding and bolt-on acquisitions rather than balance sheet-driven growth. The main analytical question is whether this conservatism leaves capital deployment opportunities under-exploited, a judgment that warrants further investigation.
Liquidity Stable Despite Quarterly Cash Swings
As reported in financial statements, WTS current ratio held between 2.46 and 2.83 across all ten quarters, while quick ratio stayed above 1.49, pointing to a consistently strong near-term liquidity position.
Quick ratio tracking closely with the current ratio implies inventory is not a material dependence for liquidity, which is useful given the working capital swings noted in prior cash flow analysis. Even under stress, the combination of a 2.80 current ratio and minimal debt suggests short-term obligations could be met without external financing. Investors should note that these ratios are balance-sheet snapshots and would not capture intra-quarter timing of working capital outflows.
Sector-Average Multiples May Mislead on Growth
Based on the peer set provided, WTS trades at a P/E of 34.04 versus FELE at 29.25 and MWA at 19.71, yet its ROIC of 7.3% lags MWA's 19.7%, suggesting the premium rests on margin durability rather than capital efficiency.
Price-to-earnings is the ratio most often applied to this business, but it obscures the goodwill-heavy asset base, where roughly 28% of total assets is acquired intangibles that depress ROIC without affecting trailing earnings. EV/EBITDA or ROIC-adjusted measures would better isolate whether the premium reflects genuine economic returns. Investors should treat the 2026Q3 margin spike as a question for further investigation rather than an established run-rate when assessing the multiple.