Watts Water Technologies Inc. (WTS) intrinsic value & 10-year financials

Watts Water Technologies Inc. (WTS) has a Graham intrinsic value of $337.80 per share. At $356.70 on Oct 17, 2026, the stock trades 6% above that value. Over the last 10 fiscal years revenue grew 6.4% a year to $2.4B, with an average return on invested capital of 15.1%.

Graham intrinsic value
$337.80
Share price (Oct 17, 2026)
$356.70
Price vs Graham value
6% above
Market cap
$11.9B
Revenue (FY2025)
$2.4B
Revenue growth (10-yr CAGR)
6.4%
ROIC (10-yr avg)
15.1%
Free cash flow (FY2025)
$356.3M

WTS 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $2.4B $340.8M $10.17 $356.3M 18.4% 19.8%
FY2024 $2.3B $291.2M $8.69 $325.8M 17.3% 19.2%
FY2023 $2.1B $262.1M $7.82 $281.1M 17.1% 19.6%
FY2022 $2.0B $251.5M $7.48 $195.9M 15.9% 22.5%
FY2021 $1.8B $165.7M $4.88 $154.1M 13.2% 15.3%
FY2020 $1.5B $114.3M $3.36 $185.0M 12.0% 11.3%
FY2019 $1.6B $131.5M $3.85 $164.8M 12.3% 13.2%
FY2018 $1.6B $128.0M $3.73 $133.5M 12.0% 13.2%
FY2017 $1.5B $73.1M $2.12 $126.5M 11.1% 7.9%
FY2016 $1.4B $84.2M $2.44 $102.1M 10.4% 9.1%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

WATTS WATER TECHNOLOGIES INC has demonstrated mature, steady growth, with revenue compounding at 6.4% annually over the past decade.

WATTS WATER TECHNOLOGIES INC has earned high returns on invested capital, averaging 15.1% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

WATTS WATER TECHNOLOGIES INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, WATTS WATER TECHNOLOGIES INC is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $337.80 per share.

WTS stock: frequently asked questions

What is the intrinsic value of Watts Water Technologies Inc. (WTS) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, WTS's intrinsic value is about $337.80 per share.

Is WTS stock undervalued?

At $356.70 (close on Oct 17, 2026), WTS trades 6% above its Graham value of $337.80. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Watts Water Technologies Inc. grown?

Revenue went from $1.4B in fiscal 2016 to $2.4B in fiscal 2025, a compound annual growth rate of 6.4%. Net income was $340.8M in fiscal 2025.

Does Watts Water Technologies Inc. generate free cash flow?

Watts Water Technologies Inc. generated $356.3M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is WTS's return on invested capital?

Average ROIC over the last 10 fiscal years was 15.1%, and average return on equity was 15.1%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this WTS data come from?

From Watts Water Technologies Inc.'s annual 10-K filings on SEC EDGAR, most recently filed May 7, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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