Stock analysis · Bull Rankings model

VLTO analysis

Veralto CorporationPollution & Treatment Controls. Scored on the same transparent model behind the daily rankings.

VLTO
Veralto Corporation · Pollution & Treatment Controls
FCF$1.0bC+
Rev+5.9%C+
D/E1.16C+
P/E24.5xB+
PEG2.43C
64.1Score
$97.16$23.7B
1Y Target$112.76Analyst consensus · 17 analysts
5Y Target$165.10Compound horizon
10Y Target$244.91Long-dated conviction
FCF$1.0bTTM
C+
FCF $1.0b — respectable but not differentiating
Rev+5.9%TTM YoY
C+
Revenue +5.9% — steady but below market-beating range
D/E1.16
C+
D/E 1.16 — above the Industrials debt median (≈75th pctile)
P/E24.5x
B+
P/E 24.5 — below the Industrials median (≈40th pctile)
PEG2.43
C
PEG 2.43 — expensive relative to growth rate

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 64.1
Quality0.82
Growth0.67
Value0.48
Why this score
  • Raising its dividend
  • Durable high returns
  • Short track record
Entry · Margin of safety
52-week rangeMid-range
12% off the 12-month high
vs DCF fair value10% aboveest. fair value ~$88
What the price assumes: free cash flow compounding at ~8% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability44% · A-gross profit ÷ total assets (Novy-Marx)
ROIC18.0% · A-return on invested capital — not score-weighted
Why now
Pollution & Treatment Controls · market cap $23.7b. 12% off the 52-week high of $110.11. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $112.76 (implying +16% upside).
Moat
Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 108% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $112.76 (17-analyst consensus) — fundamentals + valuation re-rating. 5 yr $165.10 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $244.91 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

VLTO vs the Top Picks average

PillarVLTOBook avgDiff
Quality0.820.84-0.02
Growth0.670.92-0.25
Value0.480.75-0.27

Averaged across the 30 names in today's Top Picks (mean score 82.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-4.6 over 36 daily scores
From 68.7 (Jun 22) → 64.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
20
Position size
$1,943
3.9% of portfolio
Stop price
$72.87
25% below $97.16
$ at risk if stopped
$485.80
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Veralto Corporation (VLTO): score, valuation & FAQ

Veralto Corporation (VLTO) is a Pollution & Treatment Controls company that scores 64.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (B+). On valuation, VLTO sits about 10% above our discounted-cash-flow fair value — the current price implies roughly 8% annual free-cash-flow growth over the next decade.

Is VLTO a good stock to buy?

Bull Rankings scores VLTO 64.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (B+). A score is a quantitative screen of Veralto Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does VLTO score 64.1 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). VLTO earns its highest marks on P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is VLTO overvalued or undervalued?

Based on $97.16, VLTO sits about 10% above our discounted-cash-flow fair value — the current price implies roughly 8% annual free-cash-flow growth over the next decade. It trades at a 24.5x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in VLTO?

Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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