VLTONYSE·Industrial - Pollution & Treatment Controls

Veralto Corporation VLTO

Market cap $23.3BP/E 24.0× trailingGross margin 60.2%Reports Tue 27 Oct, after the close

$95.72

−0.16 (−0.17%)live 09:30 ET

52-wk $80.03 – $107.90

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Orin's take

0.62conviction · moderate

Refreshed 19 Aug · take v7. A new filing or a print queues the next refresh.

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Veralto's fundamentals are accelerating—FY2025 revenue grew 5.97% to $5.503B with EPS up 12.57% to $3.76, and Q2 2026 showed 7.6% sales growth and 19.4% adjusted EPS growth with raised 2026 guidance—but the stock at $100.10 has extended well above its 50-day MA of $91.78 and 200-day MA of $93.45 with RSI at 64, leaving limited near-term upside. Valuation is mixed: the 25.09x PE trades at a 10.6% discount to the peer median of 28.06x, yet the 4.28x PS and 19.0x EV/EBITDA sit at premiums of 22.3% and 18.7% respectively, and the CEO sold 7,097 shares at $101.52 on July 29.

Hold for a pullback toward the moving averages or confirmation that sustained double-digit EPS growth justifies the premium multiples.

What could go wrong

Valuation stretch. PS at 4.28x is 22.3% above the peer median of 3.50x and EV/EBITDA at 19.0x is 18.7% above the 16.0x median, raising the bar for execution.
Insider selling. CEO Jennifer Honeycutt exercised options at $28.76 and sold all 7,097 shares at $101.52 on 2026-07-29; SVP Surekha Trivedi sold 986 shares at $97.05 on 2026-08-17.
Technical overextension. Stock at $100.10 trades above both the 50-day MA of $91.78 and 200-day MA of $93.45 with RSI at 64.03 and MACD histogram negative at -0.10, suggesting cooling momentum.
Smart money tepid. Smart money score of 0.0079 as of 2026-06-30 is barely positive and fund count declined from 62 to 59 quarter-over-quarter.

What would change my mind

Pullback to moving averages. Stock retraces toward the $91.78–$93.45 range (50-day and 200-day MA) on stable fundamentalsbullish

Sustained double-digit EPS growth. Q3 2026 results show adjusted EPS growth above 15% with core sales growth above 5%bullish

Guidance cut or margin compression. Company lowers 2026 guidance or operating margin falls below the FY2025 level of 23.21%bearish

Further insider selling. Multiple officers or directors sell shares at current levels without offsetting open-market purchasesbearish

Where this comes from: FMP annual fundamentals, FY2025 · GuruFocus Q2 2026 earnings call highlights · Technicals as of 2026-08-19 · Peer relative comparison. Orin's read on VLTO; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

On file

All VLTO filings

Form	Filed	What it says	Read
13G	14 Aug	—	on file
13G/A	30 Jul	—	on file
10-Q	28 Jul	Veralto Corporation reported net earnings of $241 million for the three months ended July 3, 2026, an increase from $222 million in the prior year period.	read
8-K	28 Jul	Veralto Corporation reported second quarter 2026 results, with sales increasing 7.6% year-over-year to $1,474 million and non-GAAP adjusted operating profit margin at 24.6%.	read
8-K	1 Jun	Veralto Corporation issued $725,000,000 aggregate principal amount of 4.850% Senior Notes due 2032 on June 1, 2026.	read
8-K	14 May	Veralto Corporation’s 8-K dated May 14, 2026 discloses only the routine results of its May 13 annual shareholder meeting, triggering Item 5.07.	read
13G	30 Apr	—	on file
10-Q	28 Apr	Veralto’s first-quarter 2026 net earnings rose 13% to $254 million from $225 million a year ago, lifting diluted EPS to $1.02 from $0.90.	read

Largest holders · 13F Q2 2026

Money flow

Filer	Position	Of fund
Vanguard Capital Management	$1.4B	0.0% of fund
Vanguard Portfolio Management	$1.1B	0.0% of fund
State Street	$988.5M	0.0% of fund
Geode Capital Management	$653.0M	0.0% of fund
Invesco	$491.0M	0.0% of fund
Goldman Sachs Group	$358.4M	0.0% of fund

81 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 152 Form 4 filings, net $13.3M. Of the 50 on hand, 0 were open-market purchases and 3 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Industrials

Metric	Now	Own median	Sector
P/E	24.0×	24.2×	44.5×
EV/EBITDA	18.2×	18.4×	—
P/S	4.10×	4.22×	—
P/B	7.6×	8.0×	—

Its P/E sits 40th percentile of its own last 5 years (−0.54σ from its own mean).

What the price assumes

9.6%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

13 firms · 2026-09-23

Consensus target

$110

$104 – $114 · +15% against today's price

How they rate it

6 buy or overweight
7 hold
0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 26.3× of 7 peers

Company	Market cap	P/E	EV/EBITDA	Gross	Net	ROE
VLTOVeralto Corporation	$23B	24.0×	18.2×	60.2%	17.3%	33%
DOVDover Corporation	$25B	22.6×	15.0×	39.6%	13.5%	15%
EFXEquifax Inc.	$18B	27.1×	12.4×	44.4%	10.7%	15%
EMEEMCOR Group, Inc.	$33B	23.5×	14.7×	19.7%	7.7%	38%
HUBBHubbell Incorporated	$24B	27.4×	20.1×	35.2%	14.5%	24%
ODFLOld Dominion Freight Line, Inc.	$37B	34.2×	20.2×	31.7%	19.4%	25%
PNRPentair plc	$9B	13.8×	11.3×	41.3%	16.2%	17%
VRSKVerisk Analytics, Inc.	$22B	26.3×	15.9×	67.7%	28.2%	-212%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 8.8% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year

FY20 27.4×FY25 26.3×

What its sector has traded at

Industrials

FY14 173.5×FY26 32.7×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since

Model	Fair value	Against	Computed
Standard DCF	$75	$84.73 · −12%	2026-06-10
Levered DCF	$72	$84.73 · −14%	2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $95.72

52-week range$80 – $108

Analyst targets$104 – $114

Standard DCF$75 as of 2026-06-10, when it was $84.73

Levered DCF$72 as of 2026-06-10, when it was $84.73

At own 5y-median P/E (24×)$96

At 5y P/E range (23–30×)$92 – $121

At sector P/E (45×)$178

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.