Watts Water Technologies, Inc. logo WTS - Watts Water Technologies, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY 0
BUY 8
HOLD 15
SELL 0
STRONG
SELL 0
| PRICE TARGET: $342.50 DETAILS
HIGH: $460.00
LOW: $275.00
MEDIAN: $326.50
CONSENSUS: $342.50
UPSIDE: 10.30%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 3.3% above fair value
Current Price $310.52
Bear Case $204.43 34.2% downside ($204.43 - $310.52) / $310.52 = -34.2% 8% stage 1 growth, 11% discount
Fair Value $300.63 3.2% downside ($300.63 - $310.52) / $310.52 = -3.2% 13% stage 1 growth, 11% discount
Bull Case $403.26 29.9% upside ($403.26 - $310.52) / $310.52 = 29.9% 17% stage 1 growth, 11% discount

Adjust Assumptions

13.3%
11.0%
3.0%

Key Value Driver

FCF growth rate (13% base case)

Terminal Value % of EV 42%
Implied Market Multiple 29.8x

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $342.50 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $300.63 per share.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions