Latest Ratios: P/E Ratio 45.4x · EV/EBITDA 23.3x · ROE 12.4%. (1989–2025 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 | $8.5B | $8.0B | $6.5B | $5.2B | $3.3B | $4.6B | $2.3B | $1.4B | $1.5B | $1.5B | $1.2B |
| Enterprise Value | $8.8B | $8.2B | $6.9B | $5.6B | $3.7B | $5.0B | $2.3B | $2.3B | $2.4B | $2.7B | $2.3B |
| P/E Ratio → | 45.42 | 41.51 | 40.54 | 45.95 | 52.87 | 37.53 | 67.93 | 8.21 | 43.55 | 19.86 | 17.38 |
| P/S Ratio | 5.03 | 4.69 | 4.16 | 3.41 | 2.54 | 5.00 | 4.16 | 1.91 | 0.73 | 0.82 | 0.68 |
| P/B Ratio | 5.43 | 4.97 | 4.11 | 3.25 | 2.01 | 36.03 | 1.63 | 1.10 | 1.21 | 1.25 | 1.09 |
| P/FCF | 26.92 | 25.15 | 23.98 | 22.41 | 36.39 | 22.74 | 13.95 | 5.28 | 7.01 | 8.07 | 8.29 |
| P/OCF | 24.60 | 22.98 | 22.20 | 20.53 | 33.54 | 20.37 | 11.94 | 4.54 | 5.79 | 6.63 | 5.97 |
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 | — | 4.86 | 4.38 | 3.67 | 2.89 | 5.50 | 4.05 | 3.20 | 1.19 | 1.45 | 1.34 |
| EV / EBITDA | 23.34 | 21.85 | 20.63 | 20.12 | 22.95 | 27.17 | 15.41 | 11.90 | 6.13 | 7.52 | 7.45 |
| EV / EBIT | 30.51 | 28.93 | 28.61 | 30.33 | 33.50 | 57.54 | 28.95 | 28.37 | 7.90 | 10.22 | 11.75 |
| EV / FCF | — | 26.03 | 25.28 | 24.16 | 41.48 | 25.02 | 13.58 | 8.82 | 11.44 | 14.26 | 16.34 |
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 | 41.6% | 41.6% | 45.1% | 42.3% | 36.3% | 41.0% | 45.0% | 45.4% | 38.3% | 38.2% | 36.6% |
| Operating Margin | 17.0% | 17.0% | 15.6% | 12.5% | 8.4% | 11.7% | 14.4% | 14.7% | 14.9% | 14.4% | 11.9% |
| Net Profit Margin | 11.7% | 11.7% | 10.2% | 7.4% | 4.8% | 13.3% | 21.0% | 25.4% | 1.7% | 4.1% | 4.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.4% | 12.4% | 10.0% | 7.0% | 7.1% | 15.4% | 8.9% | 14.6% | 2.8% | 6.6% | 8.9% |
| ROA | 7.4% | 7.4% | 6.0% | 4.1% | 3.1% | 5.4% | 3.5% | 5.5% | 1.0% | 2.2% | 2.1% |
| ROIC | 11.3% | 11.3% | 9.3% | 7.0% | 6.1% | 5.1% | 2.4% | 3.4% | 10.1% | 8.8% | 7.2% |
| ROCE | 12.0% | 12.0% | 10.1% | 7.6% | 6.3% | 5.5% | 2.8% | 3.7% | 10.5% | 8.7% | 6.7% |
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 | 0.36 | 0.36 | 0.35 | 0.34 | 0.36 | 4.39 | 0.84 | 1.21 | 1.01 | 1.12 | 1.52 |
| Debt / EBITDA | 1.54 | 1.54 | 1.66 | 1.94 | 3.59 | 3.01 | 8.14 | 7.79 | 3.11 | 3.81 | 5.26 |
| Net Debt / Equity | — | 0.17 | 0.22 | 0.25 | 0.28 | 3.62 | -0.04 | 0.74 | 0.77 | 0.96 | 1.06 |
| Net Debt / EBITDA | 0.74 | 0.74 | 1.06 | 1.46 | 2.81 | 2.48 | -0.42 | 4.79 | 2.38 | 3.27 | 3.67 |
| Debt / FCF | — | 0.88 | 1.30 | 1.75 | 5.09 | 2.29 | -0.37 | 3.55 | 4.43 | 6.19 | 8.06 |
| Interest Coverage | 9.96 | 9.96 | 7.25 | 4.81 | 4.12 | 2.51 | 2.37 | 1.41 | 4.42 | 3.49 | 2.22 |
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 | 3.13 | 3.13 | 2.91 | 3.02 | 2.62 | 1.98 | 2.86 | 2.16 | 2.48 | 2.20 | 2.94 |
| Quick Ratio | 2.07 | 2.07 | 1.81 | 1.77 | 1.35 | 1.21 | 2.43 | 1.46 | 1.68 | 1.44 | 2.16 |
| Cash Ratio | 1.16 | 1.16 | 0.80 | 0.62 | 0.43 | 0.40 | 0.20 | 0.64 | 0.74 | 0.48 | 1.22 |
| Asset Turnover | — | 0.63 | 0.59 | 0.57 | 0.45 | 0.85 | 0.17 | 0.22 | 0.63 | 0.54 | 0.48 |
| Inventory Turnover | 3.61 | 3.61 | 3.15 | 3.18 | 2.23 | 2.91 | 2.27 | 1.22 | 4.00 | 3.32 | 3.45 |
| Days Sales Outstanding | — | 42.64 | 51.68 | 54.18 | 67.77 | 71.00 | 67.20 | 173.53 | 60.08 | 77.33 | 68.82 |
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 | 0.7% | 0.8% | 0.9% | 1.0% | 1.0% | 0.8% | 1.2% | 0.7% | 1.6% | 1.5% | 0.4% |
| Payout Ratio | 32.3% | 32.3% | 35.3% | 44.7% | 52.7% | 30.1% | 24.4% | 5.4% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.2% | 2.4% | 2.5% | 2.2% | 1.9% | 2.7% | 1.5% | 12.2% | 2.3% | 5.0% | 5.8% |
| FCF Yield | 3.7% | 4.0% | 4.2% | 4.5% | 2.7% | 4.4% | 7.2% | 19.0% | 14.3% | 12.4% | 12.1% |
| Buyback Yield | 1.9% | 2.0% | 2.3% | 2.4% | 0.8% | 0.0% | 2.5% | 7.4% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.6% | 2.8% | 3.2% | 3.4% | 1.8% | 0.8% | 3.8% | 8.1% | 1.6% | 1.5% | 0.4% |
| Shares Outstanding | — | $171M | $175M | $177M | $154M | $125M | $123M | $124M | $123M | $106M | $105M |
Non-residential construction cyclicality
Based on current market data, ZWS trades at a forward P/E of 28.95, which suggests that investors are pricing in a significant growth premium compared to diversified industrial peers, likely driven by the company's positioning as a pure-play water sustainability entity within the institutional construction market.
The valuation multiple appears to reflect an expectation of durable, specification-driven growth rather than cyclical industrial performance. However, the PEG ratio of 1.42 warrants caution, as it implies that the current share price may be outpacing near-term earnings growth projections, leaving little room for error if institutional project pipelines soften.
As reported in recent financial statements, ZWS's ROIC has remained in a narrow range between 1.2% and 3.3% over the last ten quarters, indicating that the company is currently struggling to generate returns on invested capital that meaningfully exceed its likely cost of capital.
The persistent gap between these returns and those of peers like Watts Water Technologies suggests that the integration of recent acquisitions has yet to yield the expected efficiency gains. Investors should monitor whether management can improve asset utilization or if the capital-intensive nature of the current business model will continue to suppress long-term compounding potential.
According to quarterly filings, ZWS's cash conversion cycle has fluctuated significantly, peaking at 162 days in 2023Q4 and settling at 126 days in 2026Q1, which highlights a structural reliance on inventory management that appears less efficient than industry benchmarks for high-margin industrial manufacturers.
The elevated days inventory outstanding, which consistently exceeds 100 days, suggests that the company may be carrying excess stock to mitigate supply chain risks or support its specification-led distribution model. This working capital intensity acts as a drag on free cash flow generation and warrants further investigation into whether inventory turnover can be accelerated without compromising service levels.
Market participants frequently misapply generic EV/EBITDA multiples to ZWS, failing to account for the recurring revenue potential of the Elkay filtration business, which effectively functions as a high-margin 'razor-blade' model that is fundamentally distinct from the cyclical nature of traditional commercial plumbing hardware.
By treating the company as a pure construction play, the market likely obscures the defensive quality of the repair and replacement revenue stream. Analysts should instead focus on the lifetime value of installed hydration stations and the associated filter replacement rates, which provide a more accurate picture of earnings quality than headline valuation multiples suggest.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying ZWS stock.
Zurn Elkay Water Solutions Corporation's current P/E ratio is 45.4x. The historical average is 33.2x. This places it at the 73th percentile of its historical range.
Zurn Elkay Water Solutions Corporation's current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.5x.
Zurn Elkay Water Solutions Corporation's return on equity (ROE) is 12.4%. The historical average is 0.0%.
Based on historical data, Zurn Elkay Water Solutions Corporation is trading at a P/E of 45.4x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Zurn Elkay Water Solutions Corporation's current dividend yield is 0.73% with a payout ratio of 32.3%.
Zurn Elkay Water Solutions Corporation has 41.6% gross margin and 17.0% operating margin. Operating margin between 10-20% is typical for established companies.
Zurn Elkay Water Solutions Corporation's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.