WTS (Watts Water Technologies) EBIT: $501 Mil (TTM As of Mar. 2026)


WTS Watts Water Technologies Inc WTS
89 GF Score
Price $364.04
GF Value $252.92
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Watts Water Technologies EBIT?

Watts Water Technologies WTS -2.95% 89 EBIT is $501 Mil as of Mar. 2026. GuruFocus rates WTS with a GF Score™ of 89/100 and a GF Value™ of $252.92 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Watts Water Technologies's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $134 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $501 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Watts Water Technologies's annualized ROC % for the quarter that ended in Mar. 2026 was 18.64%. Watts Water Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 74.49%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Watts Water Technologies's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.18%.

Watts Water Technologies  (NYSE:WTS) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Watts Water Technologies's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=532.8 * ( 1 - 24.2% )/( (2191.1 + 2142)/ 2 )
=403.8624/2166.55
=18.64 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2881.2 - 284.6 - ( 405.5 - max(0, 512.4 - 1286.1+405.5))
=2191.1

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2939.8 - 423.1 - ( 374.7 - max(0, 496 - 1348.1+374.7))
=2142

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Watts Water Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=536/( ( (297.1 + max(368.2, 0)) + (296.4 + max(477.4, 0)) )/ 2 )
=536/( ( 665.3 + 773.8 )/ 2 )
=536/719.55
=74.49 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(294 + 524.3 + 62.3) - (284.6 + 0 + 227.8)
=368.2

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(374.4 + 543.1 + 55.9) - (423.1 + 0 + 72.9)
=477.4

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Watts Water Technologies's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=501/11978.719
=4.18 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Watts Water Technologies EBIT Related Terms

Watts Water Technologies EBIT Historical Data

* Premium members only.

The historical data trend for Watts Water Technologies's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Watts Water Technologies EBIT Chart

Watts Water Technologies Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 240.40 314.60 357.70 400.70 456.60

Watts Water Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 89.60 137.40 113.70 115.90 134.00

WTS vs CR, GTLS, FLS: EBIT Comparison

For the Specialty Industrial Machinery subindustry, Watts Water Technologies's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Watts Water Technologies EV-to-EBIT vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Watts Water Technologies's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Watts Water Technologies's EV-to-EBIT falls into.


WTS
89GF Score
Watts Water Technologies Inc WTS
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Watts Water Technologies EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $501 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $501 Mil mean?
Watts Water Technologies (WTS) has a EBIT of $501 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Watts Water Technologies.
Is Watts Water Technologies' EBIT too high?
Watts Water Technologies' current EBIT is $501 Mil. Overall, Watts Water Technologies has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' EBIT compare to CR and GTLS?
Watts Water Technologies' EBIT of $501 Mil can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Industrial Products company?
A good EBIT depends on the Industrial Products industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Watts Water Technologies. Watts Water Technologies's current EBIT is $501 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts Water Technologies stock overvalued right now?
Based on GuruFocus' analysis, Watts Water Technologies (WTS) is currently considered Significantly Overvalued. The stock's GF Value™ is $252.92, compared to a current price of $364.04 — trading 43.9% above its estimated fair value. The current EBIT is $501 Mil. Watts Water Technologies' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current EBIT is $501 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Watts Water Technologies (WTS) Overvalued in 2026?

Based on GuruFocus' analysis, Watts Water Technologies stock appears to be overvalued. The current stock price of $364.04 is trading 43.9% above its estimated GF Value™ of $252.92. GuruFocus considers Watts Water Technologies to be Significantly Overvalued.

Key valuation signals for WTS:

  • EBIT: $501 Mil
  • GF Value™: $252.92 vs. price of $364.04 (43.9% above fair value)
  • GF Score™: 89/100 with 6 warning signs

No single metric tells the full story. See the WTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Watts Water Technologies Business Description

Other Exchanges W3W:Germany
Address 815 Chestnut Street, North Andover, MA, USA, 01845
Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products. Its product portfolio includes residential and commercial flow control products, which are sold for plumbing and hot water applications; HVAC and gas products, including commercial boilers, water heaters, heating solutions, etc.; drainage and water reuse products, including drainage products and engineered rainwater-harvesting solutions; and water quality products, including point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems. Its products are marketed through brands like Watts, Apex, Bradley, Nexa, and others. Geographically, the company derives its key revenue from the Americas, followed by Europe and the APMEA region.
89GF Score

Get the complete analysis for WTS

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$364.04
Price
$252.92
GF Value