Waters Corporation (WAT) DCF Valuation
Transparent DCF models put Waters Corporation (WAT)'s fair value in a range of $115.06 – $233.81 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $371.15 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $371.15, the market is pricing in roughly +20.0%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -17.6%. The price is betting on acceleration above its track record.
Current Price
$371.15
Fair-Value Range
$115.06 – $233.81
Market-Implied Growth
+20.0%/yr
vs -17.6% 5Y actual
WAT DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $507.5M · 0.07B shares · net debt $819.6M
Estimated Fair Value
$115.06
-69.0% vs $371.15
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $371.15; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $146 | $154 | $164 | $175 | $189 |
| 9.0% | $124 | $129 | $136 | $143 | $152 |
| 10.0% | $107 | $111 | $115 | $120 | $126 |
| 11.0% | $93.22 | $96.12 | $99.36 | $103 | $107 |
| 12.0% | $82.43 | $84.60 | $87.01 | $89.68 | $92.67 |