Veralto Corp Dossier - Source-backed chat

Veralto Corp

VLTONYSE

SectorIndustrials

IndustryPollution & Treatment Controls

Beta (adjusted)0.84

Intrinsic Value $106.52median of 6 methods · middle span $95-$150based on filings through 3 Apr 2026

Market Price $94.32Price as of 30 Sep 2026

Near fair valueIntrinsic value is 13% above the market price

−50% · IV below pricenear fair value ±15%IV above price · +50%

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Market Cap $23B

Enterprise Value $24.2B

Shares Outstanding 249.4M diluted

Moat Rating Wide

Next Earnings Date21 Oct 2026

Last ex-dividend30 Jun 2026

All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference.

Thesis

Street consensus, scenarios, merits, risks, and invalidation triggers

AI-assisted

Thesis Summary

Veralto entered the second half of 2026 with improving operating momentum: Q2 core sales grew 4.2%, Water Quality grew 5.7%, adjusted operating margin reached 24.6%, and management raised full-year core-sales and adjusted-EPS guidance. The proposed Cleanwater1 acquisition adds a sizable installed base and recurring-revenue opportunity, but introduces execution and purchase-price risk.

This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today.

Street view · analyst 12-month targets17 analysts · as of 18 Aug 2026

Low · most bearish analyst$100.00

Mean target$113.29

High · most bullish analyst$136.00

Our research · scenarios, merits, risks, and invalidation triggersResearch as of 2 Sep 2026

Scenarios · 12-month scenario targetsAnchored at research date

Bear CaseDownside scenario

$100.0020%

PQI fails to accelerate from Q2's 2.0% core growth, consolidated core growth falls below guidance, or Cleanwater1 is delayed or underperforms the announced low-double-digit growth and return expectations. Restructuring and acquisition-related costs could also widen the gap between reported and adjusted profitability.

Base CaseCentral scenario

$113.2955%

Matches the consensus mean

Veralto delivers within its raised 2026 guidance, including 4.0%-4.5% core-sales growth, 25-50 basis points of adjusted operating-margin expansion, adjusted EPS of $4.35-$4.43, and free-cash-flow conversion above 100%. Cleanwater1 closes in the fourth quarter and is neutral to modestly accretive in 2027.

Bull CaseUpside scenario

$136.0025%

Core growth remains above the upper end of the 4.0%-4.5% full-year range, PQI accelerates as management expects, Water Quality sustains strong demand, and Cleanwater1 closes on schedule with recurring-revenue synergies emerging.

Scenarios are anchored to street consensus at the research date, with our probabilities and rationale.

Key Investment Merits

Q2 2026 core sales grew 4.2%, and management raised full-year core-sales guidance to 4.0%-4.5% and adjusted-EPS guidance to $4.35-$4.43.
Water Quality produced 5.7% Q2 core growth, supported by industrial treatment, water reuse, environmental monitoring, and steady municipal-water demand.
Cleanwater1 would add approximately 25,000 installed units; Veralto expects to use that installed base and Trojan Technologies relationships to increase recurring revenue.

Key Investment Risks

PQI core sales grew only 2.0% in Q2 2026, making the expected second-half acceleration an important execution dependency.
Cleanwater1 carries an approximately $452 million net purchase price, equal to about 17 times its latest-twelve-month adjusted EBITDA, and remains subject to closing conditions.
Q2 reported operating margin was 21.4% versus 24.6% adjusted, with $29 million of pretax restructuring costs contributing to the adjustment gap.

All scenarios are estimates and subject to change. Past performance is not indicative of future results.

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Explore this dossier

ValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework.