Xylem Inc. (XYL) intrinsic value & 10-year financials

Xylem Inc. (XYL) has a Graham intrinsic value of $107.75 per share. At $104.05 on Oct 17, 2026, the stock trades 3% below that value. Over the last 10 fiscal years revenue grew 10.2% a year to $9.0B, with an average return on invested capital of 9.2%.

Graham intrinsic value
$107.75
Share price (Oct 17, 2026)
$104.05
Price vs Graham value
3% below
Market cap
$25.4B
Revenue (FY2025)
$9.0B
Revenue growth (10-yr CAGR)
10.2%
ROIC (10-yr avg)
9.2%
Free cash flow (FY2025)
$910.0M

XYL 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $9.0B $957.0M $3.92 $910.0M 13.5% 8.1%
FY2024 $8.6B $890.0M $3.65 $942.0M 11.8% 7.0%
FY2023 $7.4B $609.0M $2.79 $566.0M 8.9% 7.6%
FY2022 $5.5B $355.0M $1.96 $388.0M 11.3% 10.9%
FY2021 $5.2B $427.0M $2.35 $330.0M 11.3% 10.9%
FY2020 $4.7B $254.0M $1.40 $641.0M 7.8% 7.2%
FY2019 $5.0B $401.0M $2.21 $613.0M 9.7% 9.8%
FY2018 $5.0B $549.0M $3.03 $349.0M 13.2% 13.5%
FY2017 $4.7B $331.0M $1.83 $516.0M 11.8% 9.2%
FY2016 $3.8B $260.0M $1.45 $373.0M 10.8% 7.3%

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

Executive summary

Xylem Inc. is a consistent compounder, expanding top-line revenue at 10.2% annually over the past decade.

Xylem Inc. returns on capital have been average, hovering around 9.2% ROIC over the decade.

Xylem 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, Xylem Inc. is modeled at 11.7% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $107.75 per share.

XYL stock: frequently asked questions

What is the intrinsic value of Xylem Inc. (XYL) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 11.7% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, XYL's intrinsic value is about $107.75 per share.

Is XYL stock undervalued?

At $104.05 (close on Oct 17, 2026), XYL trades 3% below its Graham value of $107.75. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Xylem Inc. grown?

Revenue went from $3.8B in fiscal 2016 to $9.0B in fiscal 2025, a compound annual growth rate of 10.2%. Net income was $957.0M in fiscal 2025.

Does Xylem Inc. generate free cash flow?

Xylem Inc. generated $910.0M 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 XYL's return on invested capital?

Average ROIC over the last 10 fiscal years was 9.2%, and average return on equity was 12.0%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this XYL data come from?

From Xylem Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 28, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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