US Equities Analysis

VLTO — Veralto

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 23.77%
Profit Margins 17.32%
Return on Equity 36.46%
Return on Assets 11.32%
Free Float 0.25B
Dividend Yield 0.58%
Short Int % Utilisation 3.16%

2.2 Growth

Metric Value
Revenue Growth 6.8%
Free Cash Flow 0.77B
EBITDA 15.77 (Ratio)
Enterprise Value 21.73B
EV/Revenue 3.89
EV/EBITDA 15.77

Revenue growth of 6.8% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -6.11%
Risk / Std Dev (Ann.)* 22.83%
1-Year Price Return* -8.45%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $97.68
52-Week Range $80.03 – $110.11
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $5.50B
Prior annual revenue $5.19B
EBIT $1.27B
Tax rate 19.90%
NOPAT = EBIT × (1 − tax rate) $1.02B
Forecast start-growth basis 5.97%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $1.02B
Add: depreciation & amortisation $78.00M
Less: capital expenditure -$63.00M
Less/(add): working-capital cash-flow movement -$27.00M
Current unlevered FCFF $1.00B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 5.97% $1.08B $82.66M -$66.76M -$28.61M $1.06B $1.02B
2 5.10% $1.13B $86.87M -$74.34M -$30.07M $1.11B $990.54M
3 4.23% $1.18B $90.55M -$81.85M -$31.35M $1.16B $950.82M
4 3.37% $1.22B $93.60M -$89.10M -$32.40M $1.19B $905.09M
5 2.50% $1.25B $95.94M -$95.94M -$33.21M $1.22B $854.31M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.75
Cost of equity 8.85%
Pre-tax cost of debt 3.40%
WACC 8.18%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $21.95B
Implied terminal EV / EBITDA 13.25x
Terminal value as % of enterprise value 75.82%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $4.72B
Present value of terminal value $14.82B
Indicated enterprise value $19.54B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $19.54B
Less: gross interest-bearing debt $2.88B
Add: cash and equivalents $2.03B
Add: affiliate investments $0.00
Less: minority interests $1.00M
Indicated common equity value $18.69B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 250,300,000.00
Share-count basis reported diluted weighted-average shares
Current market price $96.79
DCF indicative value per share $74.68
Indicative value vs. market price -22.85%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:53:17.897504 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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