Waters Corporation (WAT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-50.9%

$222.73

vs $453.22 price

Levered DCF

$153.17

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.76

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	35.17×	34.51×	30.29×	29.03×	33.12×	29.45×	26.67×	24.47×
P/B	8.83×	12.04×	16.91×	40.73×	62.42×	66.18×	-73.06×	9.27×
P/S	7.14×	7.44×	6.58×	6.91×	8.24×	6.5×	6.57×	6×
EV / EBITDA	23.23×	22.57×	21.48×	21.37×	24.46×	20.86×	20.72×	17.73×
Gross margin	57.8%	59.4%	59.6%	58.0%	58.5%	57.4%	58.0%	59.0%
Operating margin	28.2%	27.9%	27.7%	29.4%	29.5%	27.3%	29.4%	30.6%
Net margin	20.3%	21.6%	21.7%	23.8%	24.9%	22.1%	24.6%	24.5%
Current ratio	1.73×	2.11×	2.22×	2.24×	2.39×	1.74×	2.22×	5.93×
Debt / equity	0.58×	0.93×	2.12×	3.3×	4.36×	6.26×	-8.21×	0.73×
Interest coverage	12.84×	9.21×	8.27×	17.9×	18.29×	13.15×	14.55×	15.21×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	25.1%	34.9%	55.8%	140.3%	188.5%	224.7%	-273.8%	37.9%
Return on invested capital	17.6%	18.4%	18.2%	28.7%	28.9%	24.9%	29.6%	19.6%
Return on assets	12.7%	14.0%	13.9%	21.6%	22.4%	18.4%	23.2%	15.9%
Free cash flow yield	2.4%	2.8%	2.3%	2.1%	2.5%	4.0%	3.0%	3.3%
Earnings yield	2.8%	2.9%	3.3%	3.4%	3.0%	3.4%	3.7%	4.1%
Enterprise value	$23.5B	$23.4B	$21.5B	$21.7B	$24B	$16.4B	$17.2B	$14.9B
Net debt / EBITDA	0.89×	1.33×	2.05×	1.16×	1.12×	1.29×	1.73×	0.42×
Cash conversion cycle (days)	224	205	218	195	162	173	187	168