Watts Water Technologies Inc (WTS) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Watts Water Technologies Inc stock $186, price $347, that is 46.5% below the price, quality 69 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $113.10 – $391.55 · fair‑value band $128.83 – $244.72 · the $347.46 price screens above the $185.98 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets.
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The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications.
It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications.
In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications for commercial, marine, and residential applications.
It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts in the Americas, Europe, Asia-Pacific, Middle East, and Africa.
Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.
Stock analysis
Watts Water Technologies Inc (WTS) currently trades at $347.46, while our model-based Fair Value estimate is $185.98, 46% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $185.98 per share, and 0 of the 26 models we run sit above the $347.46 price.
Bear case: the Dividend Discount group reads lowest at $27.79, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $128.83 (bear) to $244.72 (bull), the price of $347.46 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 69/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Watts Water Technologies Inc reported revenue of $2.4B in FY2025 versus $1.8B in FY2021, a compound +7.7%/yr. Reported net income was $341M in FY2025, compounding +19.8%/yr from FY2021.
Key figures
Market cap $11.6B Large · P/E ratio 30.3 · P/S ratio 4.35 · EPS (TTM) $11.45 · Dividend yield 0.6% · Net margin 14.3% · Return on equity 18.8% · Return on assets (EBIT) 15.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (low confidence).
What moves the price
The share trades about 11% below its 52-week high and 33% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −46%, WTS screens richer than that median.
Fair Value models
Bear$128.83Fair Value $185.98Bull$244.72
Price $347.46 · Downside -46.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($7.86 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors sold shares worth $2.5M and none bought.
SaleElie MelhemPresident- APAC, M. East, Afr.5× since Mar 17, 2026: 7,133 shares, avg. $310.35$2.2MSep 4, 2026
SaleJoseph T NoonanDirector3,650 shares at $353.72$1.3MSep 1, 2026
SaleMichael J. DuboseDirector2× since Mar 12, 2026: 730 shares, avg. $306.02$223,397May 28, 2026
SaleTimothy P Horne10% owner4× since Nov 12, 2025: 22,500 shares, avg. $293.52$6.6MFeb 20, 2026
SaleRobert J Pagano JrPresident and CEO16,066 shares at $327.31$5.3MFeb 19, 2026
SaleKenneth Robert LepageGeneral Counsel5,025 shares at $321.08$1.6MFeb 17, 2026
SaleVirginia A HalloranChief Accounting Officer605 shares at $276.78$167,452Dec 17, 2025
Plus 9 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.91/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.1%
Start year 2020 (pandemic). Over 10 years: +5.2% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+22.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+22.0%
Dividend (yield on the price)0.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21.5% vs 18.1%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 19%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+18.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +15.3% a year for the price and +4.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate business quality rests on solid operating margins and cash flow from record sales, yet the main weakness lies in potential lasting gross margin dilution from the shifting business mix.
Main risk: Larger competitors such as Xylem or Pentair and low-cost Asian manufacturers could exert pricing pressure or erode market share in flow-control and plumbing products.
Bull case: By accelerating onshoring, dual-sourcing and premium smart-product offerings the company could offset tariff and competitive pressures while expanding its data-center content.
Bear case: Persistent tariffs, supply disruptions and aggressive pricing by larger or Asian rivals could compress margins and limit growth in core plumbing and flow-control lines.
Watts Water reported record Q2 sales with data center demand more than tripling year over year and lifted its full-year outlook as a result. That segment adds operating margin through low overhead but dilutes gross margins compared with the traditional plumbing and water quality lines. Will the volume lift sustain the overall profitability profile or will the business mix create lasting pressure?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 808 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score69 · Top 25%
Fair Value upside−46.5% · Below median
Profitability
Return on equity (12 months)18.8% · Top 25%
Return on assets11.8% · Top 25%
Net margin (12 months)14.3% · Top 25%
Operating margin (12 months)20.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)18.6% · Above median
Dividend yield (12 months)0.6% · Below median
Balance sheet
Debt / equity0.10× · Above median
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)30.3× · Pricier than median
P/B5.74× · Priciest 25%
P/S (12 months)4.35× · Priciest 25%
Price / free cash flow (fiscal year)32.7× · Pricier than median
EV/EBITDA19.7× · Pricier than median
PEG3.14× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)93· sector 31
PAST (return on equity)75· sector 28
HEALTH (low debt)95· sector 96
DIVIDEND (yield)13· sector 29
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Watts Water Technologies Inc Fair Value". https://www.fairvalue-calculator.com/stock/WTS
Frequently asked questions
Is Watts Water Technologies Inc (WTS) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $185.98 versus a price of $347.46, about 46% lower (overvalued).
What is the fair value of WTS?
Our model-based fair value for Watts Water Technologies Inc is $185.98 (as of Nov 6, 2026), built from audited fundamentals. The current price: $347.46.
What is the quality score of WTS?
Watts Water Technologies Inc has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Watts Water Technologies Inc (WTS)?
Our model-based price target is the fair value of $185.98 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $128.83, optimistic scenario $244.72. It is a calculation from audited fundamentals, not an analyst target.
What is the Watts Water Technologies Inc stock forecast for 2026?
Our models put fair value at $185.98, about 46% lower versus a price of $347.46 (overvalued). Cautious scenario $128.83, optimistic scenario $244.72. The calculation is refreshed regularly with new filings.
What is the revenue of Watts Water Technologies Inc (WTS)?
Watts Water Technologies Inc reported trailing-twelve-month revenue of about $2.7B (latest available figure, as of Nov 6, 2026).
Does Watts Water Technologies Inc pay a dividend?
Watts Water Technologies Inc currently shows a dividend yield of 0.63% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Watts Water Technologies Inc (WTS)?
For today's price to be fair in a discounted-cash-flow model, Watts Water Technologies Inc would have to grow free cash flow by +18.0 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.1 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of WTS use?
Our models discount Watts Water Technologies Inc at 9.5 %: a base by market capitalisation (large), damped by beta 1.13, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Watts Water Technologies Inc that is +18.0 % per year a year over ten years, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Watts Water Technologies Inc (WTS) delivered so far?
Over the past 5 years revenue at Watts Water Technologies Inc grew +10.1 % a year. The price currently implies +18.0 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Watts Water Technologies Inc (WTS) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Watts Water Technologies Inc (+18.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Watts Water Technologies Inc (WTS)?
The free-cash-flow yield on the price is 3.06 %: that much free cash flow Watts Water Technologies Inc produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Watts Water Technologies Inc (WTS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Watts Water Technologies Inc it is $185.98 per share (as of Nov 6, 2026), against a price of $347.46. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Watts Water Technologies Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, WTS trades above its calculated fair value: price $347.46, fair value $185.98, a gap of about −46% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of WTS?
No. The price is what the market pays today ($347.46); the fair value is what the company's own numbers justify ($185.98). For Watts Water Technologies Inc the two are $161.48 per share apart. That gap is exactly why we show both numbers side by side.
How much is Watts Water Technologies Inc worth?
The market values Watts Water Technologies Inc at about $11.6B (market capitalisation, as of Nov 6, 2026). Per share that is $347.46; our models calculate a fair value of $185.98 per share.
What do the bullish and bearish scenarios say about WTS?
Our models span a range for Watts Water Technologies Inc: cautious scenario $128.83, base $185.98, optimistic $244.72 per share (as of Nov 6, 2026, price $347.46). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of WTS?
Watts Water Technologies Inc trades at a price-to-earnings ratio of 30.3 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $185.98 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 25.7. Other multiples: PEG 3.1, P/B 5.7, P/S 4.3, EV/EBITDA 19.7.
What is the PEG ratio of WTS?
The PEG ratio of Watts Water Technologies Inc is 3.14 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Watts Water Technologies Inc (WTS)?
Balance-sheet figures for Watts Water Technologies Inc (as of Nov 6, 2026): return on equity 18.8%, debt of 0.10 per unit of equity. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is WTS from its 52-week high?
Watts Water Technologies Inc trades at $347.46, about 11% below its 52-week high of $391.55 and 33% above the low of $261.65 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $185.98 is for.
Which stocks are comparable to Watts Water Technologies Inc?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Watts Water Technologies Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $347.46, calculated fair value $185.98 (−46%), Quality Score 69/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of WTS calculated?
We run Watts Water Technologies Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $185.98, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Watts Water Technologies Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Watts Water Technologies Inc (WTS)?
The closing price on Nov 5, 2026 was $347.46. Our model-based fair value is $185.98, about 46% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Watts Water Technologies Inc right now?
The price sits above even our optimistic bull case ($244.72). The favourable scenario is already priced in. Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($128.83 to $244.72) leaves room in how you read the outcome.
Where does the earnings growth of Watts Water Technologies Inc (WTS) come from?
Earnings per share at Watts Water Technologies Inc grew +18.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share +5.4 %, EBIT margin +8.5 %, tax rate +1.9 %, residual (interest, one-offs) +1.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Watts Water Technologies Inc
How large is the market capitalisation of Watts Water Technologies Inc (WTS)?
The market capitalisation of Watts Water Technologies Inc is $11.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Watts Water Technologies Inc (WTS)?
The price-to-sales ratio of Watts Water Technologies Inc is 4.35 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Watts Water Technologies Inc (WTS)?
Earnings per share at Watts Water Technologies Inc are $11.45 (price ÷ EPS = P/E 30.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Watts Water Technologies Inc (WTS)?
The dividend yield of Watts Water Technologies Inc is 0.6% (payout 19.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Watts Water Technologies Inc (WTS)?
The net margin of Watts Water Technologies Inc is 14.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Watts Water Technologies Inc (WTS)?
The return on equity (ROE) of Watts Water Technologies Inc is 18.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Watts Water Technologies Inc (WTS)?
On an EBIT basis the return on assets of Watts Water Technologies Inc is 15.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Watts Water Technologies Inc (WTS)?
The operating margin of Watts Water Technologies Inc is 20.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Watts Water Technologies Inc (WTS)?
Revenue at Watts Water Technologies Inc is growing +18.6% versus a year earlier (3y avg +7.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Watts Water Technologies Inc (WTS)?
Earnings per share at Watts Water Technologies Inc are growing +17.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Watts Water Technologies Inc (WTS) hold?
Watts Water Technologies Inc holds more cash than debt, $208M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026