ZWS (Zurn Elkay Water Solutions) Intrinsic Value: DCF (Dividends Based): $45.56 (As of Jul. 19, 2026)

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ZWS Zurn Elkay Water Solutions Corp ZWS
88 GF Score
Price $47.73
GF Value $40.49
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Zurn Elkay Water Solutions Intrinsic Value: DCF (Dividends Based)?

Zurn Elkay Water Solutions ZWS -1.34% 88 Intrinsic Value: DCF (Dividends Based) is $45.56 as of Jul. 19, 2026. GuruFocus rates ZWS with a GF Score™ of 88/100 and a GF Value™ of $40.49 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 441 Industrial Products companies, Zurn Elkay Water Solutions ranks worse than 226757.14% on this metric.

As of today (2026-07-19), Zurn Elkay Water Solutions's intrinsic value calculated from the Discounted Dividend model is $45.56.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Zurn Elkay Water Solutions's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Zurn Elkay Water Solutions is -4.76%.

The historical rank and industry rank for Zurn Elkay Water Solutions's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

ZWS's Price-to-DCF (Dividends Based) is not ranked *
in the Industrial Products industry.
Industry Median: 1.26
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Zurn Elkay Water Solutions  (NYSE:ZWS) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.


Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Zurn Elkay Water Solutions Intrinsic Value: DCF (Dividends Based) Related Terms


Zurn Elkay Water Solutions Intrinsic Value: DCF (Dividends Based) Historical Data

* Premium members only.

The historical data trend for Zurn Elkay Water Solutions's Intrinsic Value: DCF (Dividends Based) 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.

Zurn Elkay Water Solutions Intrinsic Value: DCF (Dividends Based) Chart

Zurn Elkay Water Solutions Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23 Dec24 Dec25
Intrinsic Value: DCF (Dividends Based)
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Zurn Elkay Water Solutions Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Intrinsic Value: DCF (Dividends Based) 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 0.00 0.00 0.00 0.00 0.00

ZWS vs CECO, PCT, ERII: Intrinsic Value: DCF (Dividends Based) Comparison

For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) 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.


Zurn Elkay Water Solutions Price-to-DCF (Dividends Based) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Zurn Elkay Water Solutions's Price-to-DCF (Dividends Based) falls into.


ZWS
88GF Score
Zurn Elkay Water Solutions Corp ZWS
Intrinsic Value: DCF (Dividends Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zurn Elkay Water Solutions Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.55%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Zurn Elkay Water Solutions's average Dividend Growth Rate in the past 5 years was 27.30%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $1.458.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Zurn Elkay Water Solutions's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.11) = 1.0810810810811
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Dividends per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=1.458*31.2501
=45.56

Margin of Safety % (DCF Dividends Based) = (Intrinsic Value: DCF (Dividends Based)-Current Price) /Intrinsic Value: DCF (Dividends Based)
= (45.56 - 47.73) / 45.56
= -4.76 %

* 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.

What does a Intrinsic Value: DCF (Dividends Based) of $45.56 mean?
Zurn Elkay Water Solutions (ZWS) has a Intrinsic Value: DCF (Dividends Based) of $45.56 as of Jul. 19, 2026. Intrinsic Value: DCF (Dividends Based) is the stock value based on a two-stage discounted dividend model. View historical data on Zurn Elkay Water Solutions and its competitors. According to the industry distribution chart, Zurn Elkay Water Solutions ranks #999999 out of 441 companies in the Industrial Products industry.
Is Zurn Elkay Water Solutions' Intrinsic Value: DCF (Dividends Based) too high?
Zurn Elkay Water Solutions' current Intrinsic Value: DCF (Dividends Based) is $45.56. The Industrial Products industry median Intrinsic Value: DCF (Dividends Based) is 1.26. Zurn Elkay Water Solutions' value of $45.56 is 3515.9% above this industry median. Based on the distribution chart, Zurn Elkay Water Solutions ranks #999999 out of 441 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Zurn Elkay Water Solutions has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zurn Elkay Water Solutions' Intrinsic Value: DCF (Dividends Based) compare to CECO and PCT?
According to the Industrial Products industry distribution chart, Zurn Elkay Water Solutions ranks #999999 out of 441 companies for Intrinsic Value: DCF (Dividends Based). This places Zurn Elkay Water Solutions in the lower half of its industry. The industry median Intrinsic Value: DCF (Dividends Based) is 1.26. Zurn Elkay Water Solutions' value of $45.56 is 3515.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (Dividends Based) for an Industrial Products company?
The median Intrinsic Value: DCF (Dividends Based) among Industrial Products companies is 1.26, based on 441 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Dividends Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Dividends Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zurn Elkay Water Solutions's current Intrinsic Value: DCF (Dividends Based) of $45.56 is 3515.9% 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 Intrinsic Value: DCF (Dividends Based) mean?
A high Intrinsic Value: DCF (Dividends Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Dividends Based) is the stock value based on a two-stage discounted dividend model. View historical data on Zurn Elkay Water Solutions and its competitors. For the Industrial Products industry, the median Intrinsic Value: DCF (Dividends Based) is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zurn Elkay Water Solutions's current Intrinsic Value: DCF (Dividends Based) is $45.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zurn Elkay Water Solutions stock overvalued right now?
Based on GuruFocus' analysis, Zurn Elkay Water Solutions (ZWS) is currently considered Modestly Overvalued. The stock's GF Value™ is $40.49, compared to a current price of $47.73 — trading 17.9% above its estimated fair value. The current Intrinsic Value: DCF (Dividends Based) is $45.56 and 3515.9% above the Industrial Products industry median of 1.26. Zurn Elkay Water Solutions' overall GF Score™ is 88/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Dividends Based) calculated?
Intrinsic Value: DCF (Dividends Based) is calculated from a company's financial statements. For Zurn Elkay Water Solutions (ZWS), the current Intrinsic Value: DCF (Dividends Based) is $45.56 as of Jul. 19, 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 Zurn Elkay Water Solutions (ZWS) Overvalued in 2026?

Based on GuruFocus' analysis, Zurn Elkay Water Solutions stock appears to be overvalued. The current stock price of $47.73 is trading 17.9% above its estimated GF Value™ of $40.49. GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.

Key valuation signals for ZWS:

  • Intrinsic Value: DCF (Dividends Based): $45.56
  • GF Value™: $40.49 vs. price of $47.73 (17.9% above fair value)
  • GF Score™: 88/100 with 2 warning signs
  • Industry Position: 3515.9% above the Industrial Products median (#999999 of 441)

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


Zurn Elkay Water Solutions Business Description

Address 511 West Freshwater Way, Milwaukee, WI, USA, 53204
Zurn Elkay Water Solutions Corp is a growth-oriented, pure-play water management business that designs, procures, manufactures, and markets the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. Its product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products, and filtered drinking water products for public and private spaces that deliver superior value to building owners, positively impact the environment and human hygiene and reduce product installation time.
88GF Score

Get the complete analysis for ZWS

Intrinsic Value: DCF (Dividends Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$47.73
Price
$40.49
GF Value