On 12 Nov 2026 our base value for Veralto is $91.75 a share, 21.9% below its $117.49 close; 0 of 1 valuation methods put it above the price.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $91.75 | -21.9% | free cash flow $1.09bn, growth 6.4% for 5 years, then fading to 3% over 5 more, discounted at 9.13%; stress floor $57.06 |
| Exit multiple (P/E) | — | — | no exit multiple: fewer than 12 quarters of usable earnings history, so there is no multiple this name has been shown to trade at. The forward PE is not a substitute — it is today's price divided by earnings, and an anchor built from it can only restate the price |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 0.66 (5 years of monthly returns against the S&P 500; standard error 0.32) |
| Peer beta | 1.02 (median of 79 S&P 500 Industrials companies) |
| Blend of own and peers | 0.84 (49% own, 51% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 0.89 (0.67 × 0.84 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 9.13% |
Free cash flow grows 6.40% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $1.09bn | — | — |
| Year 1 | 6.40% | $1.16bn | 0.9163 | $1.07bn |
| Year 2 | 6.40% | $1.24bn | 0.8396 | $1.04bn |
| Year 3 | 6.40% | $1.32bn | 0.7693 | $1.01bn |
| Year 4 | 6.40% | $1.40bn | 0.7049 | $987.48m |
| Year 5 | 6.40% | $1.49bn | 0.6459 | $962.74m |
| Year 6 | 5.83% | $1.58bn | 0.5919 | $933.61m |
| Year 7 | 5.27% | $1.66bn | 0.5423 | $900.52m |
| Year 8 | 4.70% | $1.74bn | 0.4969 | $863.92m |
| Year 9 | 4.13% | $1.81bn | 0.4553 | $824.33m |
| Year 10 | 3.57% | $1.87bn | 0.4172 | $782.27m |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (9.13% − 3%) | $31.48bn |
| Terminal value in today's money | $13.13bn |
| Present value of years 1–10 | $9.37bn |
| Total present value | $22.51bn |
| Shares outstanding | 245.30m |
| Value per share = total ÷ shares | $91.75 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 1.4% | Growth 6.4% | Growth 11.4% |
|---|---|---|---|
| 8.13% | $80.92 | — | $149.44 |
| 9.13% | $67.92 | $91.75 | $123.47 |
| 10.13% | $58.56 | $78.46 | — |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 0.66 | 8.10% | — |
| Peer beta | 1.02 | 9.72% | $83.49 |
| Adjusted beta (used) | 0.89 | 9.13% | $91.75 |
The base value is the average of the methods kept in it:
| Method | Value |
|---|---|
| Discounted cash flow | $91.75 |
One method is kept, so the base value is its value: $91.75
Base value $91.75 a share
One-year price simulation: a 10% chance the price is below $93.51 and a 10% chance it is above $167.69 in a year; a 62% chance it is higher than today's $117.49, from 22.67% volatility. The simulation assumes the price drifts up at our discount rate of 9.13% a year.
At $117.49 the price implies free cash flow growing 10.5% a year for five years and then fading toward 3% over five more; its revenue has grown 6.4%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $94.68 | $73.36 |
| 9 Oct 2026 | $96.93 | $73.13 |
| 16 Oct 2026 | $101.04 | $84.27 |
| 23 Oct 2026 | $104.33 | $85.44 |
| 30 Oct 2026 | $111.10 | $94.88 |
| 6 Nov 2026 | $117.09 | $96.00 |
| 12 Nov 2026 | $117.49 | $91.75 |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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