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Watts Water TechnologiesWTS +1.37%92 EV-to-EBIT is 23.01 as of Aug. 04, 2026, which is 31% above its 10-year median of 17.61. GuruFocus rates WTS with a GF Score™ of 92/100 and a GF Value™ of $255.79 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,378 Industrial Products companies, Watts Water Technologies ranks worse than 57.06% on this metric.
Watts Water Technologies (NYSE:WTS) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Watts Water Technologies's Enterprise Value for the quarter that ended in Mar. 2026 was $9,517 Mil.
Watts Water Technologies's 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.
Watts Water Technologies EV-to-EBIT Related Terms
Watts Water Technologies EV-to-EBIT Historical Data
* 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.
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.
Watts Water Technologies's current Enterprise Value is $11,527 Mil.
Watts Water Technologies's 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.
Watts Water Technologies (WTS) has a EV-to-EBIT of 23.01 as of Aug. 04, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Watts Water Technologies and its competitors. This is 31% above median its historical median of 17.61. According to the industry distribution chart, Watts Water Technologies ranks #1357 out of 2378 companies in the Industrial Products industry, placing it in the top 57.1%.
Is Watts Water Technologies' EV-to-EBIT too high?
Watts Water Technologies' current EV-to-EBIT of 23.01 is 31% above median its 10-year median of 17.61. The Industrial Products industry median EV-to-EBIT is 19.31. Watts Water Technologies' value of 23.01 is 19.2% above this industry median. Based on the distribution chart, Watts Water Technologies ranks #1357 out of 2378 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Watts Water Technologies has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' EV-to-EBIT compare to GNRC and DCI?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #1357 out of 2378 companies for EV-to-EBIT. This places Watts Water Technologies in the lower half of its industry. The industry median EV-to-EBIT is 19.31. Watts Water Technologies' value of 23.01 is 19.2% above this benchmark. While the company's 10-year median is 17.61 vs. the industry median of 19.31, Watts Water Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Industrial Products company?
The median EV-to-EBIT among Industrial Products companies is 19.31, based on 2,378 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current EV-to-EBIT of 23.01 is 19.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median EV-to-EBIT is 19.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current EV-to-EBIT is 23.01, which is 31% above median its own 10-year median of 17.61. 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 $255.79, compared to a current price of $350.52 — trading 37% above its estimated fair value. The current EV-to-EBIT is 23.01, which is 31% above median its 10-year median of 17.61 and 19.2% above the Industrial Products industry median of 19.31. Watts Water Technologies' overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current EV-to-EBIT is 23.01 as of Aug. 04, 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 $350.52 is trading 37% above its estimated GF Value™ of $255.79.
GuruFocus considers Watts Water Technologies to be Significantly Overvalued.
Key valuation signals for WTS:
EV-to-EBIT: 23.01 (31% above median its 10-year median of 17.61)
GF Value™: $255.79 vs. price of $350.52 (37% above fair value)
Industry Position: 19.2% above the Industrial Products median (#1357 of 2378)
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 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.
92GF Score
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