Market Pulse44Neutral

Veralto CorporationOpportunity Rank #277(VLTO) Intrinsic Value & DCF Analysis (2026)

Sector: Industrials

Current Price

$82.97

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$82.97
Price
$65.92
Intrinsic Value
Overvalued by 21%MOS: $52.74

Fundamental Score

44/100
Bearish

Weighted across 6 signals

Narrative Score

50/100
Weak

No change vs previous

Trend Score

26/100
Weak

As of 2026-06-22

The intrinsic value of Veralto Corporation (VLTO) is estimated at $65.92 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $82.97, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.67% long-term growth rate and a 9.00% discount rate (calculated: 7.94%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Veralto Corporation (VLTO) is estimated at $65.92 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $82.97, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.67% long-term growth rate and a 9.00% discount rate (calculated: 7.94%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$65.92
-20.55% downside
20% margin of safety: $52.74
Years: 10Growth Rate: 2.67%
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Capital Efficiency

Average Quarterly ROIC
6.75%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

44/100
BearishWeighted across 6 signals
DCF Discount
20.5% premium to price
16
FCF Yield
5.7% trailing FCF yield
93
ROIC vs WACC
ROIC 6.8% vs WACC 10.0% (0.7x)
34
Net Debt / FCF
1.1x net debt to FCF
58
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
2.3% 5Y FCF CAGR
25
Strengths: FCF Yield, Buybacks. Concerns: DCF Discount, ROIC vs WACC.

Narrative Details

50/100
Weak
Vs 6-Month Baseline:Low (10th pct)Weighted across 3 recent drivers
Trend: StableConfidence: 59%Updated: 4h ago
Sources: 14 (8 News · 6 Analyst)
Drivers(last 30 days)
7 news sentiment-0.0
Earnings beat+0.0
6 analyst reiterations0.0

Trend Details

26/100
WeakAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-21.2%
6M Relative Strength vs SPY-28.0%
Price vs 50 EMA-3.7%
Price vs 21 EMA40 · -1.5%
Price vs 50 EMA32 · -3.7%
21 EMA vs 50 EMA32 · -2.2%
3M RS vs SPY3 · -21.2%
6M RS vs SPY4 · -28.0%
Distance from 52W High51 · -24.4%

Investment Coach

Updating... 12d ago
AVOIDConfidence: 78%
Thesis
Veralto Corporation is currently overvalued by approximately 24% with weak fundamentals and returns below its cost of capital, despite a healthy free cash flow yield. The company's narrative score is stable but broken, indicating limited positive momentum.
Key Risk
The primary risk is the sustained underperformance relative to the cost of capital, which may continue to pressure valuation and returns.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value.
  • Improvement in ROIC versus WACC spread.
  • Meaningful positive shifts in the narrative score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 2.67%5 Year CAGR: 4.11%

Free Cash Flow (in millions)

TTM202520242023202220212020
$1,162$1,140$930$1,017$904$950$1,037

How Intrinziq Estimates Fair Value

Intrinziq estimates Veralto Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Veralto CorporationIndustrials

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.