Xylem Inc. (XYL) 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

+47.4%

$143.03

vs $97.06 price

Levered DCF

$111.59

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.06

Safe zone

Rating

A-

Overall 4 / 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	34.65×	31.61×	40.7×	56.13×	50.6×	72.19×	35.33×	21.88×
P/B	2.89×	2.64×	2.44×	5.7×	6.72×	6.18×	4.8×	4.33×
P/S	3.67×	3.29×	3.37×	3.61×	4.16×	3.76×	2.7×	2.3×
EV / EBITDA	18.9×	17.22×	23.38×	28.83×	27.37×	31.98×	21.4×	15.1×
Gross margin	38.5%	37.5%	36.9%	37.7%	38.0%	37.5%	39.0%	38.9%
Operating margin	13.5%	11.8%	8.9%	11.3%	11.3%	7.5%	9.3%	12.6%
Net margin	10.6%	10.4%	8.3%	6.4%	8.2%	5.2%	7.6%	10.5%
Current ratio	1.63×	1.75×	1.76×	1.89×	2.27×	1.8×	1.63×	1.51×
Debt / equity	0.18×	0.2×	0.24×	0.56×	0.78×	1.06×	0.8×	0.83×
Interest coverage	42.17×	22.93×	13.31×	12.44×	7.7×	4.77×	7.25×	7.98×
Dividend yield	1.2%	1.2%	1.2%	1.1%	0.9%	1.0%	1.2%	1.3%
Payout ratio	40.9%	39.3%	49.1%	61.1%	47.5%	74.0%	43.4%	27.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.3%	8.4%	6.0%	10.2%	13.3%	8.6%	13.6%	19.8%
Return on invested capital	6.4%	5.8%	4.5%	7.8%	7.0%	4.4%	7.2%	10.1%
Return on assets	5.4%	5.4%	3.8%	4.5%	5.2%	2.9%	5.2%	7.6%
Free cash flow yield	2.7%	3.3%	2.3%	1.9%	1.5%	3.5%	4.3%	2.9%
Earnings yield	2.9%	3.2%	2.5%	1.8%	2.0%	1.4%	2.8%	4.6%
Enterprise value	$33.7B	$29.2B	$26.2B	$20.9B	$22.8B	$19.6B	$15.8B	$14B
Net debt / EBITDA	0.33×	0.59×	1.22×	1.38×	1.39×	2.08×	2.23×	2.17×
Cash conversion cycle (days)	69	70	84	81	74	68	65	73