Latest Ratios: P/E Ratio 35.1x · EV/EBITDA 22.2x · ROE 18.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.9B | $9.2B | $6.8B | $7.0B | $4.9B | $6.6B | $4.1B | $3.4B | $2.2B | $2.6B | $2.2B |
| Enterprise Value | $11.7B | $9.0B | $6.6B | $6.9B | $4.8B | $6.5B | $4.1B | $3.5B | $2.4B | $2.8B | $2.6B |
| P/E Ratio → | 35.13 | 27.14 | 23.39 | 26.64 | 19.52 | 39.71 | 36.22 | 25.91 | 17.73 | 35.83 | 26.72 |
| P/S Ratio | 4.89 | 3.79 | 3.02 | 3.39 | 2.48 | 3.64 | 2.74 | 2.13 | 1.41 | 1.79 | 1.61 |
| P/B Ratio | 5.90 | 4.56 | 3.99 | 4.61 | 3.78 | 5.61 | 3.87 | 3.49 | 2.49 | 3.15 | 3.06 |
| P/FCF | 33.49 | 25.95 | 20.90 | 24.83 | 25.08 | 42.71 | 22.37 | 20.70 | 16.67 | 20.90 | 22.03 |
| P/OCF | 29.68 | 23.00 | 18.86 | 22.46 | 21.93 | 36.41 | 18.08 | 17.59 | 13.07 | 16.76 | 16.29 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.71 | 2.94 | 3.37 | 2.40 | 3.58 | 2.73 | 2.19 | 1.51 | 1.94 | 1.83 |
| EV / EBITDA | 22.18 | 17.10 | 14.88 | 17.57 | 13.39 | 22.77 | 18.09 | 14.37 | 9.97 | 13.19 | 13.06 |
| EV / EBIT | 24.85 | 19.80 | 16.52 | 19.37 | 15.10 | 26.96 | 22.83 | 17.68 | 12.38 | 17.45 | 17.03 |
| EV / FCF | — | 25.37 | 20.32 | 24.64 | 24.25 | 42.07 | 22.25 | 21.25 | 17.79 | 22.64 | 25.09 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.5% | 49.5% | 47.2% | 46.7% | 44.2% | 42.4% | 41.5% | 42.3% | 42.0% | 41.4% | 40.4% |
| Operating Margin | 19.3% | 19.3% | 17.3% | 17.1% | 15.9% | 13.2% | 12.0% | 12.3% | 12.0% | 11.1% | 10.4% |
| Net Profit Margin | 14.0% | 14.0% | 12.9% | 12.7% | 12.7% | 9.2% | 7.6% | 8.2% | 8.0% | 5.0% | 6.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.2% | 18.2% | 18.1% | 18.6% | 20.3% | 14.8% | 11.2% | 14.1% | 14.5% | 9.4% | 11.7% |
| ROA | 12.9% | 12.9% | 12.4% | 12.4% | 13.3% | 9.2% | 6.6% | 7.8% | 7.4% | 4.1% | 4.8% |
| ROIC | 21.2% | 21.2% | 19.7% | 20.3% | 21.4% | 16.9% | 12.8% | 14.0% | 13.6% | 11.6% | 10.7% |
| ROCE | 21.7% | 21.7% | 20.1% | 20.3% | 21.0% | 16.7% | 13.3% | 15.1% | 13.9% | 11.7% | 10.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.12 | 0.20 | 0.11 | 0.12 | 0.19 | 0.32 | 0.40 | 0.60 | 0.89 |
| Debt / EBITDA | 0.37 | 0.37 | 0.44 | 0.76 | 0.42 | 0.50 | 0.87 | 1.27 | 1.49 | 2.32 | 3.31 |
| Net Debt / Equity | — | -0.10 | -0.11 | -0.03 | -0.13 | -0.09 | -0.02 | 0.09 | 0.17 | 0.26 | 0.43 |
| Net Debt / EBITDA | -0.39 | -0.39 | -0.43 | -0.13 | -0.46 | -0.35 | -0.09 | 0.37 | 0.63 | 1.01 | 1.59 |
| Debt / FCF | — | -0.58 | -0.58 | -0.18 | -0.83 | -0.65 | -0.11 | 0.54 | 1.12 | 1.74 | 3.06 |
| Interest Coverage | 42.28 | 42.28 | 27.26 | 43.62 | 44.94 | 38.16 | 13.56 | 14.04 | 11.71 | 8.49 | 6.65 |
Net cash position: cash ($406M) exceeds total debt ($198M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.51 | 2.51 | 2.59 | 2.61 | 2.51 | 2.11 | 2.27 | 1.75 | 2.07 | 2.39 | 2.02 |
| Quick Ratio | 1.49 | 1.49 | 1.65 | 1.63 | 1.52 | 1.20 | 1.43 | 1.11 | 1.25 | 1.60 | 1.45 |
| Cash Ratio | 0.79 | 0.79 | 0.93 | 0.86 | 0.82 | 0.59 | 0.70 | 0.52 | 0.59 | 0.86 | 0.80 |
| Asset Turnover | — | 0.85 | 0.94 | 0.89 | 1.03 | 0.97 | 0.87 | 0.93 | 0.95 | 0.84 | 0.78 |
| Inventory Turnover | 2.35 | 2.35 | 3.04 | 2.74 | 2.94 | 2.81 | 3.35 | 3.42 | 3.17 | 3.30 | 3.48 |
| Days Sales Outstanding | — | 44.01 | 41.03 | 46.12 | 43.11 | 44.57 | 47.81 | 50.13 | 47.93 | 54.15 | 51.68 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.7% | 0.8% | 0.7% | 0.8% | 0.5% | 0.8% | 0.9% | 1.3% | 1.0% | 1.1% |
| Payout Ratio | 19.6% | 19.6% | 19.1% | 17.7% | 15.7% | 20.7% | 27.5% | 23.9% | 22.7% | 35.4% | 29.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.7% | 4.3% | 3.8% | 5.1% | 2.5% | 2.8% | 3.9% | 5.6% | 2.8% | 3.7% |
| FCF Yield | 3.0% | 3.9% | 4.8% | 4.0% | 4.0% | 2.3% | 4.5% | 4.8% | 6.0% | 4.8% | 4.5% |
| Buyback Yield | 0.1% | 0.2% | 0.2% | 0.2% | 1.4% | 0.2% | 0.7% | 0.6% | 1.2% | 0.7% | 1.2% |
| Total Shareholder Yield | 0.7% | 0.9% | 1.1% | 0.9% | 2.2% | 0.8% | 1.5% | 1.5% | 2.5% | 1.7% | 2.3% |
| Shares Outstanding | — | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $35M |
Commercial office construction headwinds
According to current market data, WTS trades at a forward P/E of 30.08, which suggests investors are pricing in a significant quality premium compared to industrial peers like Mueller Water Products, likely due to the company's specification-led business model and high recurring revenue profile.
The valuation multiple appears to reflect a market consensus that WTS is a high-quality infrastructure play rather than a cyclical manufacturer. While the PEG ratio of 1.42 indicates that the stock is not cheap on a growth-adjusted basis, the premium may be justified by the structural switching costs inherent in its commercial plumbing specifications.
As reported in financial statements, the company's ROIC has fluctuated between 4.2% and 6.1% over the last ten quarters, indicating that recent inorganic growth initiatives have temporarily diluted the return on invested capital relative to the company's historical performance and broader industrial sector benchmarks.
The compression in ROIC suggests that the integration of large-scale acquisitions like Bradley Corp requires significant capital deployment before yielding accretive returns. Investors should monitor whether management can improve asset utilization and drive higher returns as these new business units are fully integrated into the existing operational framework.
Based on the provided data, the cash conversion cycle reached 131 days in 2026Q1, reflecting a persistent reliance on inventory management that appears elevated compared to leaner industrial peers and warrants further investigation into potential channel destocking risks at major wholesale distributors.
The high days inventory outstanding (DIO) suggests that WTS maintains significant stock to ensure availability for critical commercial projects, which ties up capital and creates exposure to inventory obsolescence. This efficiency profile implies that the company prioritizes service levels and specification compliance over rapid inventory turnover.
As indicated by the company's debt-to-equity ratio of 0.09 in 2026Q1, WTS maintains a fortress balance sheet that stands in stark contrast to more leveraged industrial peers, providing the firm with substantial financial flexibility to navigate potential downturns in the commercial office construction sector.
The extremely low leverage profile suggests a conservative capital allocation strategy that prioritizes financial stability over aggressive debt-fueled expansion. This positioning may be interpreted as a defensive moat, allowing the company to sustain R&D and strategic investments even if the broader construction market faces prolonged headwinds.
The most commonly misapplied metric for WTS is the P/E ratio, which often leads analysts to incorrectly categorize the firm as a cyclical building materials supplier rather than a specialized provider of regulatory-compliant fluid control solutions with high recurring replacement revenue.
By focusing on P/E, investors may overlook the durability of the company's 'behind-the-wall' specification moat, which provides a level of earnings stability not found in traditional cyclical manufacturers. A more appropriate approach would involve evaluating the company based on its long-term 'smart' water technology adoption and the resilience of its repair and replacement revenue streams.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WTS stock.
Watts Water Technologies, Inc.'s current P/E ratio is 35.1x. The historical average is 24.2x. This places it at the 79th percentile of its historical range.
Watts Water Technologies, Inc.'s current EV/EBITDA is 22.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
Watts Water Technologies, Inc.'s return on equity (ROE) is 18.2%. The historical average is 9.6%.
Based on historical data, Watts Water Technologies, Inc. is trading at a P/E of 35.1x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Watts Water Technologies, Inc.'s current dividend yield is 0.56% with a payout ratio of 19.6%.
Watts Water Technologies, Inc. has 49.5% gross margin and 19.3% operating margin. Operating margin between 10-20% is typical for established companies.
Watts Water Technologies, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.