Xylem Inc. (XYL) DCF Valuation
Two independent models estimate Xylem Inc.'s fair value between $46.39 (conservative case) and $148.77 (analyst consensus).
What would today's price require?
$108.26 is justified only if free cash flow grows about +16.2% a year for the next decade — faster than the company has actually grown.
Current Price
$108.26
Fair-Value Range
$46.39 – $148.77
Market-Implied Growth
+16.2%/yr
vs +9.0% 5Y actual
XYL 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 $701.5M · 0.24B shares · net debt $463.0M
Estimated Fair Value
$46.39
-57.1% vs $108.26
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 $108.26; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $58.12 | $61.20 | $64.84 | $69.21 | $74.55 |
| 9.0% | $49.65 | $51.76 | $54.19 | $57.02 | $60.37 |
| 10.0% | $43.20 | $44.69 | $46.39 | $48.33 | $50.57 |
| 11.0% | $38.12 | $39.22 | $40.45 | $41.83 | $43.39 |
| 12.0% | $34.03 | $34.86 | $35.77 | $36.78 | $37.91 |
About Xylem Inc.
Xylem Inc., along with its affiliated companies, specializes in developing, manufacturing, and maintaining advanced products and systems for various water and wastewater applications. Its global reach extends across the United States, Europe, the Asia Pacific region, and other international markets. The company's operations are structured into three main divisions: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment provides a comprehensive suite of products designed for the transport and treatment of water. These offerings include pumps for water, storm water, and wastewater; integrated controls and systems; equipment for filtration, disinfection, and biological treatment; and mobile dewatering units. These are sold under prominent brands such as Flygt, Godwin, Wedeco, Sanitaire, Leopold, and Xylem Vue. In the Applied Water segment, Xylem delivers critical components like pumps, valves, heat exchangers, controls, and dispensing equipment systems. These products, bearing brand names like Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue, and Flojet, serve both residential and commercial building services, as well as industrial water management needs. The Measurement & Control Solutions division focuses on smart meters, interconnected communication devices, and various measurement and control technologies, encompassing crucial infrastructure solutions. This segment also extends its services to include software offerings such as cloud-based analytics, remote monitoring, data management, leak detection, condition assessment, asset management, and pressure monitoring solutions. Furthermore, it supplies testing equipment and managed services. Products from this segment are distributed under brands including Pure, Sensus, Smith Blair, WTW, Xylem Vue, and YSI. Xylem Inc. reaches its customers and markets its offerings through a diverse network comprising its direct sales force, resellers, distributors, and value-added solution providers. The company, which was established in 2011, was previously known as ITT WCO, Inc. before officially adopting the name Xylem Inc. in May 2011. Its principal headquarters are located in Rye Brook, New York.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Matthew Francis Pine