Market Pulse50Neutral

Veralto CorporationOpportunity Rank #233(VLTO) Intrinsic Value & DCF Analysis (2026)

Sector: Industrials

Current Price

$88.50

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$88.50
Price
$65.51
Intrinsic Value
Overvalued by 26%MOS: $52.41

Fundamental Score

44/100
Bearish

Weighted across 6 signals

Narrative Score

53/100
Weak

No change vs previous

The intrinsic value of Veralto Corporation (VLTO) is estimated at $65.51 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $88.50, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.44% long-term growth rate and a 9.00% discount rate (calculated: 8.71%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Veralto Corporation (VLTO) is estimated at $65.51 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $88.50, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 2.44% long-term growth rate and a 9.00% discount rate (calculated: 8.71%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$65.51
-25.98% downside
20% margin of safety: $52.41
Years: 10Growth Rate: 2.44%
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Capital Efficiency

Average Quarterly ROIC
6.8%
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
26.0% premium to price
7
FCF Yield
5.2% trailing FCF yield
80
ROIC vs WACC
ROIC 6.8% vs WACC 10.0% (0.7x)
34
Net Debt / FCF
0.6x net debt to FCF
89
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
1.9% 5Y FCF CAGR
25
Strengths: FCF Yield, Net Debt / FCF. Concerns: DCF Discount, ROIC vs WACC.

Narrative Details

53/100
Weak
Vs 6-Month Baseline:Average (56th pct)Weighted across 3 recent drivers
Trend: StableConfidence: 64%Updated: 52m ago
Sources: 19 (17 News · 2 Analyst)
Drivers(last 30 days)
6 regulatory scrutiny+0.2
11 news sentiment+0.1
2 analyst reiterations0.0

Investment Coach

Updated 13h ago
AVOIDConfidence: 78%
Thesis
Veralto Corporation is currently overvalued by approximately 30%, with weak fundamentals indicated by a bearish score of 42 and returns trailing its cost of capital. Despite a healthy free cash flow yield of 5.2%, the company's ROIC is below its WACC, signaling operational inefficiency.
Key Risk
The primary risk is the sustained negative spread between ROIC and WACC, which may continue to pressure returns and valuation.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • Improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 2.44%5 Year CAGR: 3.71%

Free Cash Flow (in millions)

TTM202520242023202220212020
$1,140$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 provides water analytics, water treatment, marking and coding, and packaging and color solutions worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications under the Hach, Trojan Technologies, ChemTreat and other brands. This segment also provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers marking and coding for packaged goods and related consumables; a software solution that provides digital asset management, marketing resource management, and product information management; inline printing solutions for products and packaging with marking and coding systems; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; and color standard services for the design industry. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands. The company serves industries, such as municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.