Is Veralto Corporation (VLTO) overvalued?
On Equity Rank's model estimate, VLTO trades close to its fair value (9% above it). Veralto Corporation (VLTO) last closed at $117.09; the multi-method model fair value is $107.01.
| Price | Model fair value | Price vs model |
|---|---|---|
| $117.09 | $107.01 | 9% above |
What the answer rests on
- 0 of 10 valuation methods put VLTO's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, VLTO's free cash flow would need to grow about 7.9% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 6.7% a year.
- VLTO trades at 28.9 times its last year's earnings, against a median of 24.8 for 187 profitable Industrials companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 3% above to 34% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind VLTO's fair value · What prices assume · Other companies