Veralto Corporation (VLTO) DCF Valuation
TGM's two-stage DCF values Veralto Corporation (VLTO) between $45.94 and $83.41 depending on assumptions, with a base case of $60.17. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (8.4%) reflects its beta.
What would today's price require?
$82.95 is justified only if free cash flow grows about +10.3% a year (fading to 2.5% long-run) at a 8.4% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.4% | $45.94 |
| Base case | 2.9%/yr | 8.4% | $60.17 |
| Optimistic | 5.9%/yr | 7.4% | $83.41 |
| Analyst DCF (FMP) | independent reference — different model | $75.15 | |
Current Price
$82.95
Market-Implied Growth
+10.3%/yr
vs +1.0% 5Y actual
Model Scenario Range
$45.94 – $83.41
model output — not a price target
VLTO DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for VLTO (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $872.5M · 0.25B shares · net debt $642.0M
Estimated Fair Value
$61.02
-26.4% vs $82.95
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $82.95; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.4% | $79.73 | $86.00 | $93.88 | $104 | $118 |
| 7.4% | $65.49 | $69.39 | $74.09 | $79.86 | $87.10 |
| 8.4% | $55.40 | $57.99 | $61.02 | $64.61 | $68.93 |
| 9.4% | $47.87 | $49.67 | $51.73 | $54.12 | $56.91 |
| 10.4% | $42.05 | $43.34 | $44.81 | $46.47 | $48.37 |
About Veralto Corporation
Veralto Corporation is a global provider specializing in critical solutions across water quality management, brand protection, and packaging aesthetics. Its operations are structured into two primary divisions: Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment delivers advanced instrumentation and treatment technologies designed for the precise measurement, analysis, and purification of water. These solutions cater to a broad spectrum of applications, from residential and commercial settings to municipal systems, industrial processes, research facilities, and natural environments. Esteemed brands like Hach, Trojan Technologies, and ChemTreat fall under this segment, which also supplies essential chemical reagents, support services, and digital tools for comprehensive water management. The PQI segment focuses on enhancing product integrity and brand appeal. It provides critical marking and coding systems for packaged consumer goods and associated consumables. Its offerings extend to comprehensive software for managing digital assets, marketing resources, and product information, alongside inline printing systems for direct application on products and packaging. Furthermore, PQI supplies sophisticated design software and imaging technology for innovative packaging development, as well as color management tools for both printed materials and a wide array of consumer and industrial products. The segment also establishes color standards crucial for the design sector, operating through well-known brands such as Videojet, Linx, Esko, X-Rite, and Pantone. Veralto's diverse clientele includes municipal utility providers, the food and beverage sector, pharmaceutical companies, and various industrial enterprises. Established in 2022, Veralto Corporation, which was previously known as DH EAS Holding Corp. before adopting its current name in February 2023, maintains its corporate headquarters in Waltham, Massachusetts.
- Sector
- Industrials
- Industry
- Industrial - Pollution & Treatment Controls
- CEO
- Jennifer L. Honeycutt