Veralto Corporation (VLTO)
Valuation Overview•Is Veralto Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 78/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
VLTO exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 25.7% ROIC). This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 23.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.4B | +6.0% | +4.2% | — | — | |
| EBITDA | $349.0M | — | +4.1% | — | — | |
| Net Income | $254.0M | +12.8% | +3.6% | — | — | |
| EPS (Diluted) | $1.02 | +12.6% | +3.1% | — | — | |
| Free Cash Flow | $170.0M | +23.7% | +6.6% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 59.9% | 59.2% | 58.4% | 58.4% |
| Operating Margin | 23.1% | 23.1% | 22.8% | 22.8% |
| Net Margin | 17.3% | 16.6% | 17.1% | 17.1% |
| FCF Margin | 18.6% | 17.4% | 17.5% | 17.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.00 | $1.07 | +7.0% | ||
| Q1'26 | $0.98 | $1.04 | +6.3% | ||
| Q4'25 | $0.95 | $0.99 | +4.7% | ||
| Q3'25 | $0.88 | $0.93 | +5.4% | ||
| Q2'25 | $0.87 | $0.95 | +9.6% | ||
| Q1'25 | $0.90 | $0.95 | +5.6% | ||
| Q4'24 | $0.85 | $0.89 | +4.7% | ||
| Q3'24 | $0.80 | $0.85 | +6.3% |
Total return is -13.5% (1Y), lagging the benchmark by -34.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -12.2% | -19.6% | — |
| 1Y | -13.5% | -34.3% | +0.5% |
| 3YCAGR | +2.7% | -17.3% | +1.3% |
| 5YCAGR | +1.6% | -10.3% | +1.3% |
| 10YCAGR | +0.8% | -13.1% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Veralto Corporation (VLTO) valuation, health, and returns.
Veralto Corporation is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $94.73)
Veralto Corporation has multiple valuation anchors: DCF Intrinsic Value: $94.73 | Peer Relative Fair Value: $122.02 | Wall Street Analyst Target: $106.33 (implying +18.5% upside). A convergence of these signals offers higher conviction.
Veralto Corporation displays good financial health with a composite quality score of 78/100, supported by a Altman Z-Score of 4.0 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 25.7%.
Veralto Corporation pays a 0.5% dividend yield, covered by a 12% payout ratio with 3 years of growth, supplemented by a 0.0% buyback yield.
Veralto Corporation's current growth trajectory is Stable. The company achieved +6.0% 1Y revenue growth and +12.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +4.2%.
Wall Street consensus is Hold based on 12 analysts, beating EPS expectations in 100% of recent quarters with a 11-quarter streak. The consensus price target represents a +18.5% change from current levels.
Investment risks for Veralto Corporation include: -25.1% 1-year max drawdown. Volatility risk is characterized by a beta of 0.41x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.