Zurn Elkay Water Solutions Corporation (ZWS) 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

+14.0%

$51.72

vs $45.39 price

Levered DCF

$41.04

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.8

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	40.78×	40.11×	45.25×	51.59×	36.4×	65.59×	7.38×	37.77×
P/B	4.89×	4.04×	3.2×	1.99×	34.99×	1.59×	0.99×	1.05×
P/S	4.62×	4.09×	3.35×	2.5×	4.85×	4.07×	1.72×	0.63×
EV / EBITDA	21.74×	20.58×	20.25×	22.16×	29.65×	23.55×	14.49×	5.59×
Gross margin	41.6%	45.1%	42.3%	36.3%	41.0%	45.0%	45.4%	38.3%
Operating margin	17.0%	15.6%	12.5%	8.4%	11.7%	14.4%	14.7%	14.9%
Net margin	11.7%	10.2%	7.4%	4.8%	13.3%	21.0%	25.4%	1.7%
Current ratio	3.13×	2.91×	3.02×	2.62×	1.98×	2.86×	2.16×	2.48×
Debt / equity	0.36×	0.35×	0.34×	0.36×	4.39×	0.84×	1.21×	1.01×
Interest coverage	10.09×	7.39×	4.97×	3.98×	3.08×	2.43×	1.84×	4.37×
Dividend yield	0.8%	0.9%	1.0%	1.0%	0.8%	1.3%	2.2%	1.8%
Payout ratio	32.3%	35.3%	44.7%	52.7%	30.1%	24.4%	15.1%	67.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.3%	10.1%	7.0%	3.8%	95.6%	8.2%	14.7%	2.8%
Return on invested capital	8.9%	7.8%	5.5%	2.8%	12.0%	5.5%	2.8%	8.3%
Return on assets	7.4%	6.0%	4.2%	2.2%	11.2%	3.5%	5.5%	1.1%
Free cash flow yield	4.0%	4.2%	4.5%	2.8%	4.5%	7.3%	21.1%	16.5%
Earnings yield	2.5%	2.5%	2.2%	1.9%	2.7%	5.2%	14.8%	2.6%
Enterprise value	$8.1B	$6.8B	$5.5B	$3.7B	$4.9B	$3.4B	$2.4B	$2.2B
Net debt / EBITDA	0.75×	1.08×	1.49×	2.75×	2.78×	7.84×	7.17×	2.36×
Cash conversion cycle (days)	120	137	146	179	125	179	291	96