What is Watts Water Technologies Inc worth?
With the base-case assumptions below, a discounted cash flow model on Watts Water Technologies Inc's reported free cash flow gives $270.10 per share. The share price was $357.79 on September 25, 2026, 32% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 5.0% | 10.0% | $168.00 | -53% |
| Base | 10.0% | 9.0% | $270.10 | -25% |
| Bull | 15.0% | 8.0% | $460.53 | +29% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $345.36 | $368.57 | $396.94 | $432.40 | $477.99 |
| 8.0% | $289.02 | $304.07 | $321.86 | $343.20 | $369.29 |
| 9.0% | $247.93 | $258.22 | $270.10 | $283.95 | $300.32 |
| 10.0% | $216.70 | $224.02 | $232.31 | $241.79 | $252.73 |
| 11.0% | $192.20 | $197.56 | $203.56 | $210.30 | $217.95 |
Where the presets come from
Base: years 1 to 5 grow at Watts Water Technologies Inc's revenue growth rate over the last 5 fiscal years (10.1% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions